by: Sarah Joson
Tuesday, December 8, 2015 |
Economic and financial analysis firm IHS Global Insight predicts that the Philippines will become a $1-trillion economy by 2030, and believes that it would be the only self-governing country that has an improving credit record in Asia.
The improved outlook given by IHS, which is currently at the minimum investment grade of BBB-, could be raised over the near term. IHS reported that it has upgraded its credit rating outlook for the Philippines from stable to positive, with its improving financial fundamentals, investor confidence, and governance standards.
Meanwhile, the Sovereign Risk Review compares and evaluates all self-governing countries by means of rating agencies. It was found that the Philippines was the only sovereign in Asia that received an upgrade from IHS.
The Philippines’ current account surplus is said to be balancing its liquidity, coupled with several crucial factors such as improving debt control and management, and prudent fiscal management in a continuously growing economy.
Remittances from Filipinos working abroad, revenues from the business process outsourcing (BPO) sector, and earnings from the tourism sector are the major drivers of the country’s current account which has amounted to $4.7 billion during the first six months of the year.
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