THE FIRST Metro Investment Corp., (FMIC) said that the Philippines might not reach the economic growth targets for last year, and that in the year 2024.

They said that this is due to uncertainties both locally and abroad, including inflation and the movement of policy rates.

FMIC predicted that the country’s gross domestic product (GDP) could grow to 6.0% in 2024, slower than the government’s target range of 6.5% to 7.5%. 

They said that they are also expecting a 2023 growth of 5.5%, that is slower than the 6.0% to 7.0% target range.

The Philippine Statistics Authority (PSA) is expected to release on January 31, the official fourth-quarter and full-year 2023 figures.

“This year, we continue to anticipate external headwinds — global growth outlook remains subdued,” FMIC president Jose Patricio Dumlao said.

“While headline inflation has softened in many countries, driven by the decline in food and energy prices, core inflation remains a concern. External uncertainties such as the movements of the Fed and a potential sharper slowdown in China could drag on growth,” he added.

Likewise, University of Asia and the Pacific (UA&P) economist Victor Abola noted that the GDP growth may not meet the government’s target unless more funds come in from external sources.

“I think we will not be able to meet the 6.5 (percent) unless foreign investments come in, and so far in 2023, foreign investments have actually been down significantly,” he said.