The Philippines made a strong case for a credit rating upgrade during a meeting with Rating and Investment Information Inc. (R&I), Japan’s largest credit rating agency, on June 20, 2024.
Department of Trade and Industry (DTI) Secretary Fred Pascual, along with other Cabinet members, presented the Philippines’ economic performance and positive outlook during the three-day Philippine Economic Briefing in Tokyo on June 19 to 21, 2024.
“We are particularly encouraged by the resilience our economy has shown in the face of recent global challenges. The Philippines’ robust domestic demand, strategic infrastructure investments, and young and skilled workforce position us for a credit rating upgrade and strong economic trajectory,” Pascual told R&I in a meeting Thursday.
Pascual noted the Philippines’ impressive 5.7-percent GDP growth in the first quarter of 2024 which outpaced its regional peers, firming its position as one of Southeast Asia’s fastest-growing economies.
The strong performance reinforces the potential for an upgrade to ‘A-’ within the next two years, following R&I’s positive revision of the Philippines’ credit rating outlook in August 2023.
The DTI highlighted ongoing efforts to attract foreign investments by showcasing initiatives like the CREATE MORE Bill, streamlined permit processing and green lane units in government offices.
The “Make It Happen in the Philippines” campaign further emphasizes the country’s investment potential in electric vehicles, high-tech manufacturing, renewable energy and telecommunications infrastructure.
Pascual said the Philippines has a significant demographic advantage with the youngest workforce in ASEAN, with a median age of 26. This translates into a readily available pool of over 51 million talented workers, offering businesses a long-term strategic advantage.
“The Philippines offers a stable, growing economy, a highly skilled workforce and a strategic location,” Pascual said.