Secretary Florencio Abad of the Department of Budget and Management recently said the investment grade rating given by Fitch Ratings to the Philippines can help reinforce the economic standing of the country as it is anticipated to increase the financial ability for socio-economic projects.
Furthermore, he said they are hoping to draw interest and investments to the country’s infrastructure development program which, sooner or later, could lead to infrastructure spending reaching five percent of the GDP, which is the local government’s initial goal for 2016. Infrastructure public spending is currently at 2.8 percent of GDP.
Abad noted that additional infrastructure investments can aid the growth of the Philippines’ vital industries such as tourism, agriculture, and business process outsourcing.
The infrastructure development projects include rehabilitation and expansion of main roads for agricultural produce, access to tourism zones, improvement of airports and seaports, as well as upgrade of rail and metro-rail transport systems and bus stations in key cities.
Abad is hopeful that with the recent rating upgrade and the continuous growth of key sectors, investors and emerging markets will be attracted to invest in the country.