The Department of Finance (DOF) said the Philippines achieved a full-year gross domestic product (GDP) growth rate of 5.6 percent in 2023, and projects faster GDP growth of 6.5 to 7.5 percent for this year.
According to the DOF, the country’s GDP last year was achieved by stronger domestic demand as evident in higher household consumption reflected in strong spending, supported by a healthy job market, consistent inflows of remittances from overseas Filipinos, and a surge in demand for goods and services.
In addition to this are overall investments, particularly public infrastructure which showed that the Build Better More Program is reaping benefits in terms of its high multiplier effect on the economy.
GDP refers to the total value of all goods and services produced within a country over a given period. It is a key indicator used by economists and policymakers to assess the size and health of a country’s economy and compare the economic performance of different countries.
DOF also noted that in the fourth quarter of 2023, the Philippine economy grew by 5.6 percent due to stronger domestic demand, as well as faster private consumption which was driven by restaurants, hotels, and transport, indicating that people are going out more and have more money to enjoy non-essential activities.
Meanwhile, Finance Secretary Ralph Recto said he projects faster GDP growth of 6.5 to 7.5 percent in 2024 despite domestic and external headwinds.
To ensure that the government is on track with its medium- to long-term goals, Recto said the first order of business is to Reduce Emerging Inflation Now (REIN) to boost private spending.
The Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO), co-chaired by Recto and the National Economic and Development Authority (NEDA) Secretary Arsenio Baliscan, will convene on February 16, 2024 to align efforts on the timely implementation of direct measures to curb food and non-food inflation.
“Ensuring that prices of goods remain stable and affordable is crucial to further grow the economy, consequently enabling us to boost revenue collection,” Secretary Recto said.
Recto said the DOF targets to achieve the P4.3 trillion revenue collection goal in 2024 by enhancing tax administration efficiency and pushing for the passage of the department’s refined priority tax measures that promote fiscal sustainability without hindering economic growth and aggravating inflation.