MANILA — The Development Budget Coordination Committee (DBCC) has narrowed the band of its growth target for the country this year, but widened the band for 2025.

Budget Secretary Amenah Pangandaman said the gross domestic product or GDP growth target for 2024 is now 6 to 6.5 percent from the initial target of 6 to 7 percent. 

DBCC officials are confident the Philippines will still hit the low end of the target for this year.

The country’s GDP in the third quarter slowed down due to many typhoons which affected the agricultural sector.

Finance Secretary Ralph Recto explained that with just one month left, it would be unlikely to hit over 7 percent GDP for the last quarter. But he added that economy will prosper this month buoyed by holiday consumption spending.

Pangandaman also said, “We expect the Philippine economy to bounce back during the last quarter, given the anticipated increase in holiday spending, continued disaster recovery efforts, low inflation, and a robust labor market.”

DBCC also widened the band of the GDP growth target for 2025 from the initial 6.5 to 7.5 percent now to 6 to 8 percent. 

Recto and National Economic and Development Authority Secretary Arsenio Balisacan said there are many uncertainties which is why they had to widened the target band.

“Because of so much uncertainty, it’s always best to widen the band from a low of 6 to a high of 8.. The worst case of the Philippines for next year is probably 6%,” Recto said.

Balisacan added, “We are moving at a more uncertain world- both domestic and external… The world, global economy could go either way with the ascension for example of the Trump administration.”

Overall, DBCC officials are confident the Philippine economy will continue to be strong in the years to come due to policy reforms and the high credit ratings given to the Philippines.