Fitch revises Philippines view to positive

Fitch Ratings said it revised the Philippines' outlook to positive from stable and affirmed its long-term foreign-currency issuer default rating at BBB.

“The outlook revision reflects Fitch's expectations of continued adherence to a sound macroeconomic policy framework that will support high growth rates with moderate inflation, progress on fiscal reforms that should keep government debt within manageable levels and continued resilience in its external finances,” the agency said in a press release.

Fitch expects growth to accelerate to 6.4% and 6.5% in 2020 and 2021, respectively, after slowing to 5.9% in 2019, supported by strong private consumption and rising public infrastructure investment. Overseas remittance inflows and favorable job prospects, evident from a falling unemployment rate, alongside accommodative monetary policy, should support continued private consumption demand.

On current projections, the Philippines will remain among the fastest-growing economies in the Asia-Pacific region in 2020-2021, well above the current BBB median.

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