Debt watcher Moody’s Investor Service said Thursday it expects the Philippines to continue outperforming most of its peers in the region this year.
Moody’s said in a report “the Philippines and Vietnam will be the standouts among Asean economies in terms of economic performance.”
“We expect the strong growth to be sustained, driven largely by the private sector. We expect remittances from overseas Filipinos to benefit from the ongoing recovery and stabilization in growth in the US and Asia, balancing out some of the weakness from parts of the Middle East,” it said.
“Improved execution of government spending could also improve economic growth toward the government’s target range of 7 percent to 8 percent,” Moody’s said.
It said downside risks could stem from a possible worsening of domestic political risks that, if left unchecked, could pose more significant threats to the effectiveness of governance, consumer and business sentiment and ultimately, economic growth.
Moody’s earlier upgraded the Philippines credit score to “Baa2,” with a stable outlook.
