MANILA, Oct. 16 (Xinhua) -- The economic managers of Philippine President Rodrigo Duterte on Tuesday revised the Philippines' gross domestic product (GDP) target for 2018 to 6.5 to 6.9 percent from 7 to 8 percent, citing global "uncertainties."
The inter-agency Development Budget Coordination Committee (DBCC) composed of President Duterte's economic managers stressed the need to adjust the target owing to the global difficulties.
The DBCC's medium-term macroeconomic assumptions projected Dubai Crude to average between 70 to 75 U.S. dollars per barrel this year, 75 to 85 U.S. dollars in 2019, 70 to 80 U.S. dollars in 2020 and as low as 65 to 75 U.S. dollars for 2021 and 2022.
The Philippine peso is also expected to hover between 52.50 pesos to 53 pesos to a U.S. dollar this year and 52 to 55 pesos from 50 to 53 pesos for 2019 to 2022, the DBCC said.
"We have to all realize that we are living in a different world now," Philippine Finance Secretary Carlos Dominguez told a news conference.
"Interest rates, which factor in risks, have increased and the U.S. normalization of their interest rate policy has continued. Looks like it will continue into the future - rising interest rates," Dominguez added.
Meanwhile, the DBCC easier pegged the growth target from 2018 to 2022 at 7.0 to 8.0 percent.
"We have also revised the government's medium-term macroeconomic assumptions for 2018 to 2022 to reflect developments at the national and global level, including higher world oil prices, tightening of monetary policy in advanced economies, and higher domestic inflation," the DBCC said in a joint statement.
The DBCC added that inflation forecasts for this year and next year have been adjusted upwards to 4.8 to 5.2 percent and 3.0 to 4.0 percent, respectively.
The DBCC also said the inflation forecasts from 2020 to 2022 have been retained at 2.0 to 4.0 percent. "This is consistent with the government's assessment that inflation will go back to the target level by next year," the DBCC added.
The managers expressed optimism that the Duterte administration "has taken enough measures to tame inflation in the last quarter of 2018 and the full year of 2019."
