NEDA monitoring risks to growth
THE NATIONAL Economic Development Authority (NEDA) is monitoring “uncertainties,” such as geopolitical risks, that could affect the country’s 6-8% gross domestic product (GDP) growth target this year, an official said on Monday.
“We really need to consider a lot of scenarios (before adjusting the growth target),” NEDA Undersecretary Rosemarie G. Edillon told reporters on the sidelines of a Palace briefing.
“Because on one hand, you are seeing that tensions in the Middle East are easing and that would actually lower fuel prices and that would have a good impact on us, but off hand, I cannot say (if growth target will be revised).”
The Development Budget Coordination Committee is set to hold its first meeting this year in March.
The Philippine economy grew by a weaker-than-expected 5.6% in 2024, falling short of the government’s revised 6-6.5% target.
Budget Secretary Amenah F. Pangandaman told reporters last week that the government could adjust the target if needed.
Finance Secretary Ralph G. Recto earlier told BusinessWorld that achieving a 6-6.5% GDP growth is “doable for 2025.”
Meanwhile, Ms. Edillon said the Philippines should reposition itself as an alternative source of exports to the US to benefit from the ongoing trade war Washington has with its partners such as Canada.
“In fact, if we can position our country as a very attractive alternative source for former exports to the US, we can actually benefit,” she said in mixed English and Filipino.
“We can gain a lot from our regional free trade agreements, so we’re assuming that in case Canada, perhaps, they will maximize the regional free trade agreements, and this is where we can really benefit,” she added.
US President Donald J. Trump earlier imposed a 25% additional tariff on imports from Canada and Mexico but later put it on hold. He also implemented an additional 10% tariff on imports from China.
The NEDA undersecretary said Manila has to strengthen sectors such as the chip and semiconductor industry to boost its exports. — John Victor D. Ordoñez
