Moody’s Ratings sees high economic growth potential for the Philippines following the implementation of structural reforms under the administration of President Ferdinand Marcos Jr.
Finance Secretary Frederick Go welcomed the optimistic assessment on Feb. 12, 2026, which highlighted the country’s strong macroeconomic fundamentals, sound regulatory framework and resilient financial system.
“Moody’s assessment affirms that the Philippines is on the right track. We will continue to uphold fiscal discipline, accelerate strategic investments and fast track reforms toward sustainable growth,” Go said.
The credit watcher maintained the Philippines’ Baa2 rating, citing strong access to domestic and international funding markets, a stable banking system and ample foreign currency reserves to cushion the impact of global market volatility.
Moody’s said it is confident that the Philippines will maintain resilient economic growth compared to its regional and rating peers.
This momentum is expected to be fueled by strong household consumption, overseas workers’ remittances, accelerated public investment and ongoing structural reforms, it said.
The government’s fiscal consolidation remains on track, according to the report. Moody’s expects the fiscal deficit to gradually reduce from an estimated 5.6 percent of gross domestic product in 2025 to 4.3 percent by 2028, supported by reforms to improve revenue collection and spending efficiency.
Despite external challenges, the government’s policy and fiscal management remain relatively strong, it said.
To protect the country’s credit standing, Moody’s recommends sustaining reforms that have strengthened the economy. It noted that a steady flow of public and private investments could help growth exceed expectations.
Under the leadership of Go, Department of Finance officials said they would continue to advance fiscal reforms and strategic policy measures to achieve a credit rating upgrade for the country.
