by: Sarah Joson
Thursday, May 19, 2016 |
The incoming government has recently signaled that it will uphold policy continuity. This has prompted Standard & Poor's to realize that the Philippine economy will stay on its present growth track.
The credit rating agency released a report indicating presumptive President Rodrigo Duterte's inclination to maintain the outgoing government's infrastructure program via the public-private partnership program, and to continue efforts to revise constitutional restrictions on foreign investment.
The debt watcher also projected a six-percent gross domestic product (GDP) growth for the Philippines this year, which is higher than the revised 5.9 percent expansion in 2015, but is far from the government’s official GDP target of 6.8 percent to 7.8 percent.
One of S&P's previous concerns was the political uncertainties that could be activated under incoming President Duterte's term, noting that political volatilities could weaken the stability of the Philippine economy.
Duterte had mentioned his eight-point economic agenda, which delighted financial markets.
S&P also said in the report that the growing and educated middle class of the country will continue to fuel overseas employment and the outsourcing sector. This will then drive consumption and investment despite weak external demand.