by: Karen Cayamanda
Monday, April 1, 2013 | Outsourcing News |
For the first time ever, the Philippines got a BBB investment grade rating. This leads to more investor confidence to the country's economy, which will result to more job opportunities and resources for infrastructure.
According to a statement from credit rating agency Fitch Ratings, the Philippine economy has shown resilience despite the economic downturn, which can be attributed to strong domestic demand.
Fitch recognized the country's improvements in fiscal management made the country more resilient, with strong economy and moderate budget deficits. The initiatives of the Bangko Sentral ng Pilipinas in inflation management also contributed to the macroeconomic conditions of the country. Fitch noted, however, that the Aquino administration needs to establish more governance reforms.
The country can get a more positive rating if it can maintain the economic growth and increase its fiscal revenue, but if it posts a higher fiscal debt, banking instability, and weak monetary policy management, a downgrade may occur.
We can help you understand the possibilities. Reach out to us today.