Fitch Affirms PH Credit Rating, Stable Outlook

BUT CITES POLITICAL TENSIONS

- By KEISHA TA-ASAN

In a report released yesterday, Fitch said the affirmation reflects the Philippine economy's "solid domestically driven growth" and the government's commitment to gradual fiscal consolidation, which together are expected to keep public debt manageable over the medium term.

Fitch expects the economy to grow by 5.6 percent this year, in line with 2023-2024 performance. The recovery will be powered by robust public infrastructure investment, resilient remittances and easing inflation and interest rates, which should boost private consumption.

The credit rater also said that the country's real gross domestic product (GDP) growth could rise above six percent in the medium term, more than double the projected average of other "BBB"-rated peers.

This upbeat outlook is anchored on recent structural reforms aimed at economic liberalization, including efforts to expand public-private partnerships and improve the investment climate.