Hanoi (VNA) – The inter-agency Development Budget Coordination Committee (DBCC) of the Philippines on December 5 maintained the country’s GDP goal of 6.5-7.5% for 2022.

The committee at the same time cut the forecast for 2023 to 6-7% from earlier 6.5-8% amid external headwinds.

According to the DBCC, the reopening of the economy stimulated domestic demand and improved services and industry sectors, enabling the Philippines to register a 7.7% GDP growth rate for the first three quarters of the year, surpassing the target for the whole 2022.

However, the committee predicted that the growth momentum will slightly decelerate in 2023 due to external headwinds such as the slowdown in major advanced economies.

It added that growth is expected to pick up in 2024-2028 at 6.5-8% as the country’s government pushes for interventions such as modernising agriculture and agri-business, revitalising the industry sector, and reinvigorating the service, among others.

The average inflation rate assumption for 2022 is expected to slightly increased to 5.8% from the previous assumption of 4.5%-5.5% due to the persisting high prices of food and transport costs. The inflation is expected to moderate in the medium term, reaching 2.5-4.5% in 2023 before returning to the target range of 2-4% in the 2024-2028 period.

Philippine Budget Secretary Amenah Pangamdaman, the team's chairperson, said that the Philippine government commits to taking actions to mitigate the lingering effects of the COVID-19 pandemic and impact of the geo-political tensions amid the sharp inflation increase this year./.