by: Sarah Joson
Friday, May 22, 2015 |
According to Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr., Standard & Poor’s Ratings Services has identified several notable issues after their visit to the Philippines. The credit rating agency has recognized the growth of the Philippines, but emphasized that a lot of things need to be addressed in the country’s infrastructure.
Tetangco said S&P acknowledged the remarkable economic performance and improvements in the country. These are also expected to sustain growth momentum throughout the medium-term, but upgrades in certain areas such as infrastructure are still needed.
The 6.1 percent economic growth posted by the country last year is a steep decline from the 7.2 expansion posted in 2013. Growth last year also fell short of the government’s 6.5-7.5 percent target, but was one of the countries with the fastest growth rates in Asia.
Tetangco stressed that for a stronger foundation during the medium-term and develop absorptive capacity, infrastructure must be developed, and the government is said to be doing so through programs such as the public-private partnership (PPP) and allotting larger infrastructure budgets. Spending on infrastructure is expected to boost the country’s gross domestic product by five percent next year.
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