Economic Planning Secretary Arsenio Balisacan said the growth targets this year remain achievable despite the effects of several inflationary pressures, the country’s limited fiscal space and the slowdown in global demand.
Balisacan said in a speech at the Fellows Meeting of the Foundation for Economic Freedom that domestic consumption and investment on the demand side and the services sector on the supply side propelled the economy forward as consumers and businesses were already adjusting their economic decisions and expectations to the new normal.
“The most recent data show us that household consumption contributes a significant 85 percent of economic growth on the demand side, while the services sector contributes about 67 percent to growth on the supply side,” he said.
“Both components are growing faster than the overall economy, indicating that their shares in GDP are expected to increase further. Gross fixed capital formation or investment is also exhibiting a solid performance,” he said.