BSP official urges 9-9.5% annual growth to hit pre-pandemic GDP target by 2028

A former Bangko Sentral ng Pilipinas (BSP) official, Diwa C. Guinigundo, stated on Wednesday, March 12, that the economy needs an annual growth rate of 9% to 9.5% until 2028 to return to its pre-pandemic growth trajectory.

Guinigundo emphasized that with the current government's target of 6-8% annually by 2036, the country would only reach P60 trillion in GDP, which is below the original goal of nearly P80 trillion.

During his briefing, Guinigundo highlighted risks to the economy such as fiscal and debt sustainability issues, food security concerns, political disunity, and the need for crucial projects funded by the national budget.

Guinigundo warned that external debt growth could compromise fiscal and net sustainability, and noted that Congress forcing state banks and other GOCCs to contribute to the Maharlika Investment Fund limits potential economic gains.

He urged the government to capitalize on the country's young working population, participate in global value chains for industrialization, modernize agriculture, strengthen cooperatives, and ensure good governance to ease market worries.