President Ferdinand R. Marcos Jr. is optimistic that the Philippines’ “A-” investment grade rating by Japan-based Rating and Investment Information, Inc. (R&I) would drive more investments into the country.
In a statement, Mr. Marcos said Saturday that the country’s highest rating is a manifestation of high investors’ confidence in the Philippines’ robust economy.
Mr. Marcos said the latest upgrade of the country’s credit score would cut borrowing costs and secure cheap and affordable financing for the government, businesses and ordinary consumers.
The President said the country’s latest credit rating is “also an upgrade on the lives of ordinary Filipinos,” as the government, instead of paying interest, could spend on public services like infrastructure, healthcare facilities, and the construction of school buildings.
He vowed that all Filipinos would benefit from the country’s economic growth, saying that it is key to ending poverty in the future.
The Philippines has earned an “A-” investment grade rating with a stable outlook from R&I, the largest credit rating agency in Japan. R&I cited the country’s macroeconomic stability, high economic growth path, and improvement in fiscal balance as the basis for the rating upgrade to “A-,” one notch up from the country’s previous rating of “BBB+” in August last year.
An “A-” credit rating reflects strong investor confidence in the country’s macroeconomic stability, high economic growth and improved fiscal position.
The Department of Finance (DOF) meanwhile said that the Philippines is on track to bring down the poverty rate below 10%.
During a news forum in Quezon City, DOF Undersecretary Domini Velasquez said the government’s efforts to reduce poverty are also progressing, with the latest data showing a poverty rate of 15.5%.
According to Velasquez, this remains relatively high, officials remain optimistic that the poverty rate could drop to single digits by the end of President Ferdinand Marcos administration.
Employment figures have also shown improvement, with the latest unemployment rate dropping to 3.1%, a significant decrease from the pre-pandemic rate of 5.1% in 2019. This suggests that more Filipinos are finding work, though underemployment remains at around 12%.
She said that wage and salary workers, who earn regular monthly income, represent a growing share of the employed population, signaling a positive trend in job stability.
Velasquez explained that the surge in economic activity has been driven by robust investments, increased construction, and higher government spending, particularly on the Build Better More infrastructure projects.
