Balisacan: Too Early to Abandon 6–8% Growth Goal Despite Weak Q1

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan remains optimistic about the Marcos administration’s target of 6 to 8 percent economic growth, despite the country's sluggish performance in the first quarter of 2025.

Speaking to reporters on May 14 following the SEAMEO INNOTECH signing ceremony, Balisacan stressed that it’s “too early to give up” on the medium-term growth ambition covering 2025 to 2028. He acknowledged that while the 5.4 percent gross domestic product (GDP) expansion in Q1 fell short of expectations, there is still room for recovery.

“We have to be ambitious. We’ve already been left behind by our neighbors. If we don’t push hard for faster growth, we’ll always be last,” Balisacan said.

He attributed the lower-than-expected growth to a sharp 20 percent rise in the trade deficit, which dragged overall GDP by an estimated 2.1 percentage points. He noted that if exports and imports had grown in tandem, the economy could have reached 6.2 percent growth.

To meet the lower end of the government’s annual target, the economy will need to post at least 6.2 percent growth each quarter for the rest of 2025, according to DEPDev estimates.

Despite persistent global and fiscal challenges, Balisacan drew comparisons with regional peers like Vietnam, which targets 8 to 10 percent growth to achieve high-income status by mid-century. “Why can’t we be just as ambitious?” he said.

He emphasized the importance of budget alignment with strategic priorities, such as increasing productivity, reducing poverty, and improving employment quality. Balisacan also underscored the need to boost export competitiveness, diversify markets, and reduce reliance on single trade partners.

“We clearly have to work harder to make our exports more competitive,” he added, noting that global trade uncertainties, including rising tariffs, are hampering investor confidence.

Balisacan urged stronger collaboration with Congress to ensure the national budget supports impactful projects capable of sustaining growth amid domestic constraints and international volatility.