NEDA: Phl to hit economic growth target of 6% by end of 2023

The National Economic and Development Authority expressed optimism the country will hit the low end of its economic growth target at 6 percent by the end of the year.

In a news forum on Saturday, NEDA Undersecretary Rosemarie Edillon highlighted that the Philippine economy posted the strongest third-quarter growth of 5.9 percent in Southeast Asia, bringing the gross domestic product or GDP expansion for the first three quarters of 2023 to 5.5 percent.

"For the year, we expect that we will hit the low end of the target. If not, close to it. The low end of the growth target is at 6 percent, so either a 6 or very close to that," Edillon said. 

Meanwhile, the regional neighbors Vietnam recorded 5.3 percent, Indonesia and China 4.9 percent, and Malaysia 3.3 percent.

Edillon said she is optimistic the GDP forecast is achievable, citing the Purchasing Manager's Index as one indicator.

She then noted that the October unemployment data fell to 4.2 percent from 4.5 percent during the same month last year.

"Nakita namin na maganda rin naman ang employment numbers natin at 'yung PMI, nakita namin na mataas pa rin naman siya (We saw that the employment numbers and the PMI are high)," she said. "We are actually hopeful for the rest of the year but especially going forward."

The NEDA has also observed a rise in the number of jobs generated in accommodation establishments, restaurants, transportation, and the information technology as well as business process outsourcing fields.

Edillon pointed out the gradual recovery of sectors severely hit by the pandemic, especially the tourism industry, which already surpassed its targeted 4.8 million foreign visitors.

The tourism industry's share in the country's GDP was estimated at 12.7 percent before the pandemic struck.