MANILA — The Asian Development Bank’s (ADB) lower economic growth forecast for the Philippines is “expected” due to the closure of top tourist destination Boracay Island last April 26 and the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law, Malacañang said on Wednesday.
Presidential Spokesperson Harry Roque made this remark after the Manila-based multilateral institution said it expects the Philippine gross domestic product (GDP) to grow 6.4 percent in 2018, before picking up to 6.7 percent in 2019.
“We take note of the Asian Development Bank (ADB)’s 6.4 percent Philippine economic growth outlook for 2018,” Roque said in a press statement.
These figures are below the Duterte administration’s annual growth target of 7 to 8 percent. ADB’s earlier growth forecast is 6.8 percent this year and 6.9 percent next year.
“We expected this slowdown vis-à-vis our growth target for the year, given that certain policy decisions, such as the closure of Boracay and the full implementation of our comprehensive tax reform package which would benefit the country in the long-run, contributed to the deceleration,” Roque said.
He, however, assured the public that government has put in place nine measures seen to address inflation and other supply issues.
These measures include the release of some 4.6 million bags of rice from the warehouses of the National Food Authority (NFA) to retailers and the establishment of an inter-agency surveillance and monitoring team that will ensure that rice from the ports are directly delivered to the NFA warehouses and retailers.
Other measures are the reduction of gap between farm gate prices and retail prices of chicken; the opening by the Sugar Regulatory Administration of sugar importation to direct users to moderate costs for consumers; and for the Bureau of Customs to prioritize the release of essential food items at the ports.
The implementation of these measures is expected to bring down inflation rate by about 2.4 percent.
“We assure the public that our macroeconomic fundamentals are resilient, strong and stable. Per ADB’s updated outlook, the Philippines’ growth remains the second highest in Southeast Asia,” Roque said.
“Our economic managers are committed to the country’s long-term vision and are swiftly addressing issues affecting our growth prospects to sustain high growth and make it inclusive,” he added.
Finance Secretary Carlos Dominguez III earlier said despite challenges such as inflation and account deficit, the Philippine economy remains strong. (PNA)
