Oct. 4 – The Philippines has been upgraded by Moody’s to an investment rank of Baa3, citing “robust economic performance”, “ongoing fiscal and debt consolidation” and “political stability and improved governance.”
Both Fitch Ratings and Standard & Poors have also upgraded the Philippines’ ranking. The Philippines’ economy has grown at 7.5 percent this year, one of the fastest in the world and matching that of China. In the coming years, the Philippines’ economy is expected to grow at 6 percent per annum.
The Asian Development Bank said it expected the Philippines to grow at 7 percent this year, and estimates it will grow by 6.1 percent in 2014.
“The Philippines’ economic performance has entered a structural shift to higher growth, accompanied by low inflation,” stated Moody’s in a news release. “The new growth path is being reinforced in part by improved fiscal management. Revenue growth has accommodated sizable increases in infrastructure and social spending.”
Chris Devonshire-Ellis of Dezan Shira & Associates notes that “the Philippines has become a magnet for business process outsourcing and is beginning to compete with India for back office work. It is becoming one of the stars of Asia and remains a destination for foreign direct investment very much of interest for the services and light manufacturing sectors.”
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