MANILA — The Philippines’ budget planning committee announced a 2027-2030 GDP growth target of 5.0% to 6.0%, saying on Wednesday that elevated inflation this year may temper household consumption and investments.
The economy expanded by a weaker-than-expected 2.8% in the first quarter from a year earlier, weighed down by fallout from the Middle East crisis and delays in passing the national budget following a corruption scandal linked to flood-control projects.
Growth is expected to moderate this year given heightened domestic and external uncertainties, the budget committee said.
Below are the other updated macroeconomic assumptions:
- Inflation is seen at 6% to 7% this year, easing to 4% to 5% in 2027 and 2% to 4% from 2028 to 2030.
- The peso is expected to trade at 60 to 62 per dollar for 2026 to 2030.
- 2026 fiscal deficit seen at 5.4% of GDP. The deficit is seen narrowing to 5.1% of GDP in 2027, 4.8% in 2028, 4.2% in 2029, and 3.5% in 2030.
—Reporting by Mikhail Flores and Karen Lema; Editing by John Mair