MANILA — The National Economic and Development Authority (NEDA) welcomed on Monday the Philippine credit-rating upgrade from Fitch Ratings, noting this signifies the country’s steady and strong economic performance and investors’ confidence.
International debt watcher Fitch Ratings raised Philippine credit rating to stable or “good quality” (BBB) from the previous BBB-, which means there are no pressing factors that could trigger an adjustment within the near term.
Socioeconomic Planning Secretary and NEDA Director-General Ernesto Pernia said the Fitch forecast of Philippine gross domestic product (GDP) growth of 6.8 percent affirms that the country’s economic performance will be consistent, as the economy is poised to be one of the fastest- growing in Asia.
“This positive outlook and ratings from global credit watchers encourages the whole of government to be more efficient and swift in executing the needed policy reforms, programs and projects laid out in the Philippine Development Plan 2017-2022,” he said in a statement.
The NEDA chief urged Filipinos to support the critical reforms, including the tax and other regulatory reforms, needed to sustain and even ramp up economic growth.
The administration is expecting that the Tax Reform for Acceleration and Inclusion Act (TRAIN) will be implemented as soon as it is enacted into law before year-end.
“This tax reform package will boost the country’s revenue-to-GDP ratio, fund the Build, Build, Build program, and also increase the spending capacity of the poor and the working Filipino,” added Pernia.
The Build, Build, Build program, meanwhile, is expected to ratchet up public construction spending in line with the government’s target to raise infrastructure spending to reach up to 7.4 percent of GDP by 2022.
This will intensify investments on public infrastructure to improve connectivity and ease the cost of doing business in the country.
Pernia said the NEDA has been pushing for ease of entry of foreign investments.
The Economic Development Cluster (EDC) recently approved the recommendations of the 11th Regular Foreign Investment Negative List (RFINL), which cover easing of restrictions on practice of professions, mass media, communications, educational institutions and health-related sector. (PNA)
