MANILA, Dec. 5 (Xinhua) -- The Philippine government economic team on Monday retained its 2022 gross domestic product (GDP) target of between 6.5 percent to 7.5 percent.

It in the meantime cut the forecast for 2023 to 6 percent to 7 percent from earlier 6.5 percent to 8 percent amid external headwinds.

The inter-agency Development Budget Coordination Committee (DBCC) said the reopening of the economy increased domestic demand and improved services and industry sectors, enabling the Philippines to register a 7.7 percent GDP growth rate for the first three quarters of the year, surpassing the 6.5 percent to 7.5 percent target range for 2022.

However, the economic team said the growth momentum will slightly decelerate in 2023 due to external headwinds such as the slowdown in major advanced economies.

The team added that growth is expected to pick up in 2024 to 2028 at 6.5 percent to 8 percent as the government pushes for interventions such as modernizing agriculture and agri-business, revitalizing the industry sector, and reinvigorating the service, among others.

The average inflation rate assumption for 2022 is slightly increased to 5.8 percent from the previous assumption of 4.5 percent to 5.5 percent due to the persisting high prices of food and transport costs. The inflation is expected to moderate in the medium term, reaching 2.5 percent to 4.5 percent in 2023 before returning to the target range of 2 percent to 4 percent in 2024 until 2028.

"As we move forward amid the sharp increase in inflation this year, the government commits to taking actions to mitigate the lingering effects of the COVID-19 pandemic and impact of the geo-political tensions," Budget Secretary Amenah Pangamdaman, the team's chairperson, told a news conference.