Our nat’l economy is moving forward
Credit to Author: Tempo Desk| Date: Thu, 02 May 2019 11:15:08 +0000
THE Philippine economy went up a notch higher Friday when the Japan Credit Rating Agency (JCR) raised its assessment from BBB+stable to BBB+positive. On Tuesday, Standard and Poor also raised its long-term sovereign credit ratings on the Philippines to BBB+.
Secretary of Finance Carlos Dominguez III said the rise in JCR’s assessment of the Philippine economy is “recognition of the Duterte administration’s aggressive yet prudent economic policy of spending big on infrastructure modernization while maintaining fiscal discipline.” Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the Philippines is indeed having robust and sustainable economic growth, due in part to the soundness of its banking and financial system.
The country’s BBB+positive rating is one step away from a single-A credit rating which would attract even more institutional investors, many of which follow a policy of investing only in A-rated national economies or corporate entities.
On the same day JCR announced its improved assessment of the Philippine economy, an international market intelligence firm IHS Markit cited the continuous growth of the country’s Gross Domestic Product (GDP) above 6 percent in the last seven years and said this may double from $330 billion in 2018 to $672 billion by 2026.
“The Philippines is forecast to be one of Asia’s trillion-dollar economies by 2032, with per capita GDP reaching around $8,200. Over the next decade, sustained rapid economic development will result in a significant reduction in poverty levels, IHS Markit added.
The ongoing “Build, Build, Build” infrastructure program of the administration has been cited as a major contributor to the country’s economic progress, but the market intelligence firm cited several other factors – the sustained inflows of remittances from Overseas Filipino Workers, the rapid growth of Business Process Outsourcing, the continued strength of the electronics industry, the country’s biggest export sector, and the growing middle class with its expanding consumption spending.
Our national affairs have been dominated lately by reports of problems inflicted by bad weather, earthquakes, criminal violence, charges of government corruption, and the ongoing election campaign. These are all important parts of our national life, but it is good to know that through all these problems, our national economy is progressing at a pace that foreign observers have come to notice and commend.