The Philippine economy is on a strong growth trajectory with sound financial management, Finance Secretary Ralph Recto said, after Japan-based credit rating agency Rating and Investment Information Inc. (R&I) maintained the country’s credit rating at the investment-grade ‘A-‘ with a stable outlook.
Recto described the ‘A-‘ credit rating from R&I as “a victory that every Filipino should celebrate,” as it signals continued high trust from credit rating agencies and investors.
“More investments will come in, more good jobs will be created, incomes will increase, and we will be able to lift more Filipinos out of poverty,” Recto said.
He said the government is committed to its refined Medium-Term Fiscal Program, which is expected to boost the Philippine economy to P42.6 trillion by 2030 while keeping debt at a manageable P24.7 trillion, or about 58 percent of gross domestic product (GDP).
R&I upgraded the Philippines to the ‘A-‘ level in August 2024, the first-ever ‘A-‘ rating under the Marcos Jr. administration. The ‘A-‘ rating reflects strong macroeconomic stability and robust creditworthiness, which leads to lower borrowing costs and attracts foreign direct investment.
Recto noted that lower interest payments on government borrowings would allow funds to be used for infrastructure projects, social services, healthcare, and education.
R&I cited the Philippines’ relatively high economic growth rate among major Southeast Asian countries. The country’s 5.5 percent GDP growth in the second quarter of 2025 outperformed regional peers including China (5.2 percent), Indonesia (5.1 percent), and Malaysia (4.5 percent).
The growth was driven by robust domestic demand and a decline in the inflation rate, which fell to 0.9 percent in July 2025.
R&I also recognized a continued rise in public and private investments, particularly in the electronics sector’s IT-BPM and manufacturing bases.
The rating agency believes that a 19-percent reciprocal tariff imposed by the United States will have a limited impact on the Philippine economy because of the small proportion of exports to the US.
R&I also reaffirmed the Philippines’ steady fiscal consolidation, highlighting progress in reducing the fiscal deficit and improving debt metrics.
“The government debt ratio will remain within a manageable level with the progress in reducing fiscal deficits,” the rating agency said.
The fiscal deficit dropped from a pandemic high of 8.6 percent in 2021 to 5.5 percent in 2025 and is expected to go down to 4.3 percent by 2028 and around 3 percent by 2030.
The Marcos Jr. administration has also improved the country’s debt metrics by prioritizing domestic, long-term and fixed-rate borrowings to take advantage of domestic liquidity and mitigate foreign exchange risks, it said.
