The investment-grade rating given by Moody’s Investors Service to the Philippines will help in maintaining the country’s strong growth momentum.
According to Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr., the potential for growth trumps the risks for the economy of the Philippines. He also noted that apart from the investment grade rating, the outlook is also positive amid the global financial issues.
With the strong growth of the Philippines, the improved fiscal management of the local administration, balance of payments, and debt ratio are also seen as crucial factors that contributed to the upgrade.
For the first half of this year, the country grew 7.6 percent which was one of the fastest in the region. Moreover, the debt-to-GDP ratio declined and the balance of payments posted a surplus as well.
Tetangco also cited the reduced foreign loans of the country brought on by forex from OFW remittances and the business process outsourcing (BPO) industry which have helped balance the country’s spending.