MANILA: Due to "recent foreign and local developments," the Philippine government's economic team has cut the country's GDP target for 2022 from 7 to 8 percent to 6.5 to 7.5 percent.

According to the Intergovernmental Development Budget Coordination Committee, led by newly appointed Finance Secretary Benjamin Diokno, "this growth will be sustained and expanded to 6.5 percent to 8 percent in 2023 to 2028."

The Philippines was able to safely reopen the economy and post positive growth for the first three months of 2022 thanks to rising household consumption and private investments, a strong manufacturing sector, a high vaccination rate, improved healthcare capacity, and upward trends in employment and tourism.

The committee stated in a statement that "this momentum is projected to continue for the rest of the year, with the GDP growth forecast slightly increased to 6.5 to 7.5% in account of recent global and internal developments."

It also updated the expected average inflation rate for 2022, noting that rising fuel and food prices will keep prices high and cause them to range from 4.5 to 5.5 percent. The inflation projection for 2023 was modestly raised by the committee to 2.5 to 4.5%.

By 2024 to 2028, it predicts that the inflation rate would return to the desired range of 2 to 4 percent.

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