PH gov’t lowers 2023 GDP growth target to 6-7%
The Philippines downgraded its growth target for 2023 to six to seven per cent following the depreciation of peso and high inflation.
Set previously at 6.5 to eight per cent, the government said that the downgrade has also taken into account the anticipation of a global recession.
However, the Development Budget Coordination Committee (DBCC) said that they are maintaining their 6.5 to 8.5% growth target for 2024-2028.
Meanwhile, the Philippines also revised its foreign exchange rate assumptions for the next two years. It now expects the peso to trade against the U.S. dollar at 54-55 in 2022, compared with the previous assumption of 51-53, at 55-59 in 2023, and at 53-57 in 2024, compared with the previous forecast of 51-55 for 2023 onwards.
According to the Inquirer, the peso slightly recovered against the dollar after declining to a record low of 59 due to a series of interest rate hikes by the Bangko Sentral ng Pilipinas (BSP) to match U.S. Federal Reserve’s aggressive tightening.
As of December 5, the Philippines peso is now trading at 55.73-55.88 against the U.S. dollar.
Meanwhile, Contact Center Association of the Philippines (CCAP) Managing Director Rosario Cajucom-Bradbury Rosario Bradbury said that the IT-BPM industry contributed 7.5% to the country’s GDP in 2021, second only to OFW remittances.
