The economy can still grow by 7.0-8.0 percent over the medium term despite challenges such as rising inflation and a weaker peso, with the government looking to spend even more next year in support of a massive infrastructure program.

Macroeconomic assumptions were reviewed on Monday by the interagency Development Budget Coordination Committee (DBCC), which decided to keep the gross domestic product growth target even as they raised this year’s inflation forecast and next year’s budget deficit goal, among others.