Members of the Development Budget Coordination Committee (DBCC), chaired by Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman, shared their positive outlook for the Philippine economy in line with Moody’s growth forecast for the Philippines in 2023.
As approved by the DBCC, GDP growth in 2023 is expected to range from 6.0-7.0 percent. This is aligned with the Moody’s growth projection of 6.4 percent, which will make the country the fastest growing economy in the Asia-Pacific region. According to the forecast of Moody’s, the country will be followed by Vietnam with 6.1 percent, China with 5.1 percent, India with 5 percent, Indonesia with 4.7 percent, Thailand with 3.9 percent, and Malaysia with 3.8 percent.
Budget Secretary Pangandaman believes that the government has put in place public investments under the proposed FY 2023 national budget that will further boost the economy. These expenditure priorities are anchored on the administration’s overarching goal of economic transformation.
“Our budget is still anchored in the 8-point socioeconomic agenda to develop human capital and fund infrastructure projects.” the Budget Chief said during the press conference following the 183rd meeting of the DBCC on December 5, 2022.
Expenditure priorities set for next year are coupled with reforms that will enhance governance, capacity of local government units, and legislative measures that will harmonize the implementation of programs and projects that enable broad-based growth.
In addition, DOF Secretary Benjamin Diokno clarified that the slight adjustment in the target GDP growth for 2023 to 6.0 to 7.0 percent is due to the anticipated global economic slowdown. Despite this, the economic team is confident that the country will reach Moody’s forecast of 6.4 percent by banking on the strength of our local economy which will provide a shield against external headwinds.
With these interventions in place, the economic managers are certain that the projection will be realized and even exceeded with the upward trend in domestic demand and tempered inflation due to stable oil prices.