Japan Credit Rating Agency Ltd. recently released a statement affirming its ‘BBB’ score for the Philippines. The agency pointed out that the ratings mirror the resilience of the Philippine economy against external shocks, its strong consumption reinforced by remittances from overseas Filipino workers (OFW), and the nation’s continuously improving financial capability.
But the agency also noted that there are still drawbacks brought about by the country’s unstable investment environment. For instance, the country still lacks certain improvements in infrastructure. However, roads are being constructed which improve the accessibility of provinces.
In line with that, JCR predicts that the growth of the Philippine economy will go beyond six percent this year due to strong domestic demand. Moreover, it anticipates that enhanced tax collection productivity and validation of fiscal rewards will aid in improving the fiscal position of the Philippines.
As for surplus in balance of payments, the robust inflows of OFW remittances and revenues from the business process outsourcing and tourism sectors help buoy the country’s expenses.
JCR also advised that for the country to sustain a positive economic growth rate, it would have to develop its infrastructure and improve the investment environment. The firm said they would be keeping an eye on how the Philippine government will act on the challenges and how much the situation would improve.