Fitch revises PH credit rating outlook to stable

by Lawrence agcaoiLi Philstar.com

MANILA — Debt watcher comes despite some relative deterioration over the last years in credit metrics that previously had been strengths, including in government debt, to gross domestic product and net external debt to GDP. create upside potential for growth. shared goal of a more resilient future where both people and nature thrive,” she said in a ceremony announcing the grant on Monday. For more than six decades, USAID has partnered with the Philippine government and local organizations to conserve the country’s rich biodiversity and mitigate the impacts of climate change. Since 2021, the embassy said it has provided more than PHP620 million to CSOs to amplify their efforts in achieving environmental sustainability and uplifting the lives of Filipino communities.

Fitch Ratings has upgraded the credit rating outlook of the Philippines from negative to stable due to improved confidence that the country is returning to strong mediumterm growth after the COVID-19 pandemic.

The grants were announced in celebration of the International Day for Biological Diversity, also on Monday.

The ceremony was also attended by Department of Environment and Natural Resources Undersecretary Juan Miguel Cuna and Gerry Roxas Foundation Executive Director Glen de Castro. (PNA)

At the same time, it noted sustained reductions in government debt that substantially increased in recent years.

Fitch retained the country’s credit rating at BBB or a notch above minimum investment grade. A stable outlook means the rating is likely to stay over the medium term of 12 to 18 months.

“The revision also reflects our assessment that the Philippines’ economic policy framework remains sound and in line with ‘BBB’ peers, despite its low scores on World Bank Governance indicators,” it said. According to the credit rating agency, the revision

The country’s economy would continue to be resilient with a GDP growth of above six percent over the medium term despite the slowdown in the first quarter to 6.4 percent from 7.1 percent in the fourth quarter and eight percent in the first quarter of last year, Fitch said in a statement.

“We forecast real GDP growth of above six percent over the medium term, considerably stronger than the ‘BBB’ median of three percent, after a record outturn of 7.6 percent in 2022, reflecting normalization of activity after the pandemic and the government’s investment program,” it added.

The slowdown in the first quarter was attributed to the fading post-pandemic recovery.

Fitch said the ongoing reforms to the business environment and investment regulations

The credit rating agency expects the general government deficit to narrow to 2.8 percent of GDP in 2023 and 2024 from an estimated 3.3 percent of GDP in 2022 and 4.6 percent of GDP in 2021.

Finance Secretary Benjamin Diokno said the revision is testament to the strong macroeconomic fundamentals of the country, “as evidenced by the economy’s strong growth performance in 2022 at 7.6 percent and 6.4 percent in the first quarter of 2023.”

The Philippines incurred higher debt and wider budget deficit at the height of the COVID-19 pandemic, with the GDP shrinking by 9.6 percent as the economy stalled due to strict quarantine and lockdown protocols.

The Marcos government is projecting a central government deficit of 5.1 percent of GDP by 2024, with most of the consolidation coming from spending efficiency gains and capital spending reductions. g

China harassment continues in...

livelihood.

A total of 350 civilians are currently living on Pag-asa Island, 73 of them children.

Ejercito said the Senate has been very supportive of the

AFP modernization, especially now that the focus of President Ferdinand Marcos Jr. is already external defense. He added, "Rest assured that we will support our men and women in uniform, especially the

Marines and the Navy who are stationed there."

"We commend them. My salute for holding the ground, for fighting for our sovereignty and territorial integrity," Ejercito said. g