THE Philippine economy is expected to weather global uncertainties this year, Moody’s Ratings said, with growth likely to hit the government’s target.
“Rising employment and higher remittance inflows will support household spending,” Moody’s said in a commentary on Wednesday.
“Public investment will also buttress growth, while reforms, including market liberalization, and foreign investment will spur private-sector investment,” it added.
Moody’s forecast a 6.1-percent economic expansion for 2025, within the government’s revised 6.0- to 8.0-percent annual goal up to 2028.
Gross domestic product (GDP) growth is seen by many analysts to have fallen below the 6.0- to 6.5-percent target last year amid a slowdown in government spending and the impact of a series of storms on agriculture output and inflation.
Moody’s noted that the Philippines was at risk from climate threats and said that this could affect the country’s fiscal standing.
“In 2025, the emergence of a La Niña episode and the associated risk of more extreme weather events could add to emergency fiscal spending,” it added.
The debt watcher also raised concerns about the country’s debt affordability and said that general government interest payments were projected to rise to approximately 13.5 percent of revenues through 2025, a significant increase compared to pre-pandemic levels.
Elevated interest rates, which could offset gains from revenue mobilization measures, have worsened the situation.
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