Philippine economic growth it is expected to stay inside Target this year, despite the global trade and domestic politics uncertainty can come from outsideLook, says Fitch Ratings.
“We expect the Philippine economy to expand by 206% in 2025, broadly in line with 2023-2024, affected by the traditional private use of large public investments,” Fitch Ratings said in a peer credit analysis released on Monday.
The credit rating pegged its Philippine Gross Domestic Product (GDP) at 5.6% this year, within the Government’s target of 5.5-6.5%.
“Private demand should be supported to reduce inflation and interest rates,” said Fitch.
The headline decline picked up to 1.7% in September, faster than the 1.5% in August but slower than the 1.9% clip a year earlier. This brought an annual price drop of 1.7%, compared to the Bangko Sentral ng Pilipinas’ (BSP) full-year forecast.
Earlier this month, the BSP adjusted its key policy rate by 25 basis points (BPs) to 300 lower at 4.75%. It has hit the cost of borrowing at a rate of 175 BPS since August last year.
“However, domestic political uncertainty could affect investment, with allies of President Ferdinand Marcos doing worse than the recent election,” Fitch said.
Recently, several public works ofefIcons, private contractors and lawmakers have been linked to multibillion-peso corruption involving government flood control projects.
“Global trade tensions will drag on growth, mostly indirectly on global natural demand,” Arrow said.
At the same time, Fitch Ratings “states its rating of “BBB” and “stable” for the Philippines’ credit, which it last confirmed in April, indicating strong growth prospects in the country.
“The rating of ‘BBB’ and ‘Stable’ Outlook indicate a strong medium-term growth, supported by the reduction of public debt / GDP, and the large size of the economy relative to the peers of ‘BBB’,” it said. “The ratio is depressed by the low GDP per head, despite the upward trend.”
In the first half, the Philippine economy grew by 5.4%, slower than the 6.2% seen in the same period last year.
For his part, the Department of Finance and Administration (DBM) undersecretary and Priday Economist Joselito R. Basilio said the third GDP growth will remain within the target, driven by private consumption.
“(GDP is) very likely on target,” he told reporters on the sidelines of the 2025 monetary policy conference. On Monday. “The target range is low, right?
The third GDP data will be released on November 7.
Mr BASELIO said private consumption was likely to take a third quarter amid rising prices and interest rates.
“Therefore, Maasabahan Natin Ngayon ‘Yung Private cattle have developed (therefore, we can now rely on private sector-driven growth), he added.
Mr Basilio said he expects GDP growth to remain on the fence until Ornever as the government plans to increase its spending in the coming months.
The Development Budget Coordinating Committee is scheduled to meet between November and early November to review its macroeconomic goals, he added.
‘Deception kills growth’
At the time, the analysts of the cooperative said that the analysts of GRANBALSSUSUSUSTU said that the massive corruption in the flood control projects weighed on the Philippine economy, preventing it from growing more than 6%.
“These funds – we are thrown with fraudulent contracts and padded budgets – may have built 606,5.7% of schools, where the economy revolves around DIWA C. Guinigundo and Wilhelmina C. Mañalac. Comment.
Finance Secretary Ralph G. Recto earlier said that the economy may lose P118.5 billion between 2023 and 2025 due to these anomalous projects.
“The moral claim is clear: Deceit kills growth, strengthens stability, and erodes trust. When infrastructure becomes a source of private enrichment rather than a public function,” added the entire development agenda.
A developing country like the Philippines, they say good governance is an “economic necessity,” not a “moral luxury.”
“Every peso lost in corruption is a peso lost in productive investment. When public orders are placedefEactiation, not only resources – also reduce the very foundations of inclusive growth: Communication, productivity, and resilience,” they said.
“Therefore, the corruption of not removing from public services, therefore, is more than an exercise against graft – it is a strategy to strengthen and grow. In the end, the system is too full, the system is full of resistance to earthquakes and temptations.” – Katherine K. Chan
