The government ratified the Regional Comprehensive Economic Partnership (RCEP) and released new Public Service Act…
PH growth is stabilized by robust economic activity: Pangandaman.
On Tuesday, Amenah Pangandaman, the budget secretary, said that the Philippines’ growth momentum has been sustained by the ongoing implementation of “strong” economic activities.
One of the nation’s economic managers, Pangandaman, announced after debt tracker Fitch Ratings changed the Philippines’ credit rating outlook from negative to stable and reaffirmed the country’s “BBB” rating.
She declared that the “improved outlook from Fitch is a welcome development leading to the achievement of our fiscal consolidation goals and the achievement of more fiscal space for the government’s priority agenda and projects.”
This development shows that the nation’s growth has stabilized due to ongoing, robust economic activity, and it shows our commitment to achieving stable growth governed by our medium-term fiscal framework.
Fitch gave the updated outlook due to the company’s judgment that the Philippines’ economic policy framework is still “sound” and in line with its “BBB” peer group.
A rating of “BBB” signifies that the chances of default are modest and above the minimum investment grade. Additionally, it expresses confidence in the nation’s capacity to meet its financial obligations.
According to Pangandaman, the country’s outlook has improved, signaling its creditworthiness and enabling it to more affordably access finance from foreign financial markets and development partners.
“This means that the Philippine credit conditions have already started to firm up its trajectory towards reducing its cost of borrowing and likewise lowering its debt burden as a percentage of Gross Domestic Product (GDP),” she said.
According to Pangandaman, the Marcos administration would keep up the nation’s production by the Medium-Term Fiscal Framework (MTFF) through 2022–2028.
“Fiscal conditions are already improving, which lowers the cost of borrowing money from the government. In other words, she stated that early in President Ferdinand R. Marcos Jr.’s presidency, budgetary consolidation is already underway.
According to the MTFF, the government wants to increase GDP by 6.5 to 7.5 percent in 2022, reduce poverty to 9 or ten percent by 2028, reduce the national government’s deficit-to-GDP ratio to 3% by that year, and reach a debt-to-GDP ratio of less than 60 percent by 2025.
The Philippines is returning to “strong medium-term growth after the Covid-19 (coronavirus disease 2019) pandemic,” claims the Fitch assessment.
From a projected 3.3 percent of GDP in 2022 and 4.6 percent of GDP in 2021, Fitch forecasts that the general government deficit will decrease to 2.8 percent in 2023 and 2024.
According to the estimate, the federal government’s fiscal imbalance is expected to decrease from 7.3 percent of GDP in 2022 and 8.6 percent of GDP in 2021 to 5.7 percent of GDP by 2024.
According to the statement, “the gradual pace of consolidation reflects the authorities’ focus on promoting economic growth and development.”
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