According to Moody’s Investors Service, a prominent provider of research, credit ratings, and risk analysis across the globe, the near-term growth of the Philippines hinges on several factors such as strong domestic demand, positive financial position of the government, as well as having a sound political environment.
Moody’s recently released a report which stated that growth will be sustained and could even be higher than the growth figures during posted in the past few years. The report also included other factors that could propel the country’s growth. These are structural and calculated shifts to higher growth, and low inflation rates.
The report also predicted that the gross domestic product (GDP) of the country will grow 6.5 percent this year. However, for next year, it predicted a slightly slower GDP growth at 6.4 percent.
On the other hand, the government is eyeing a GDP growth of 6.5-7.5 percent this year and 7-8 percent in 2015. Last year, the economy grew by 7.2 percent, exceeding the initial 6-7 percent target.
The Philippines currently holds a Baa3 rating from Moody’s which is the lowest investment grade with a positive outlook. It denotes a positive expectation of continuously improving performance compared to its counterparts. This, in turn, will back debt consolidations and associated improvements in debt affordability and sustainability.
Moody’s also pointed out that the country has the ability to pay its external obligations amidst the investment activity in emerging markets.