Finance Secretary Ralph Recto expressed confidence that the Philippines will secure an “A” credit rating by 2028, citing the country’s strong investment outlook despite global economic fluctuations.
Recto emphasized that the government is committed to its fiscal programs, targeting an “A” rating from all major agencies, even if the country currently holds an A-minus rating.
He highlighted that alongside Moody’s, a Japanese rating agency has upgraded the Philippines’ credit rating from R&I.
The Finance Secretary credited the country’s robust medium-term fiscal framework as a key factor in maintaining a positive investment outlook.
Currently, Moody’s has assigned the Philippines a “BAA2” investment-grade credit rating with a stable outlook.
According to Recto, these efforts are aligned with the fiscal and economic policies of the Marcos Jr. administration, which have been recognized as credible by global rating agencies.
He also noted the continued growth of the Philippine economy, pointing to a reduction in inflation rates.
In the second quarter of 2024, the Philippines recorded a 6.3% GDP growth, bringing the year’s average to 6.1%.
Over the first two years of President Ferdinand Marcos Jr.’s term, the country achieved a 6% to 6.1% GDP growth rate—one of the highest in Philippine presidential history.
Recto further explained that the fiscal framework aims to reduce the deficit to 3.8% by 2028, and once achieved, the Philippines would benefit from lower interest rates on future loans.