Finance chief Go touts reforms as PH keeps A- JCR credit rating

Insider Spotlight

• Finance Secretary Frederick Go said JCR’s A- rating affirmation reflects the Philippines’ economic resilience and the government’s commitment to reforms
• JCR cited fiscal consolidation, manageable debt and strong foreign exchange reserves among the country’s credit strengths
• Go said the rating supports government efforts to attract investments, create quality jobs and sustain inclusive growth
  
  
  
  

Finance Secretary Frederick Go welcomed the Japan Credit Rating Agency Ltd.’s (JCR) affirmation of the Philippines’ A- rating with a stable outlook, saying it validates the government’s fiscal discipline and long-term economic reform agenda.

“JCR’s affirmation of the Philippines’ A- rating and stable outlook reflects the resilience of our economy and the government’s commitment to fiscal consolidation and long-term reforms. It reinforces investor confidence and supports our efforts to attract investments, create quality jobs, and sustain inclusive growth,” the Finance chief said in a press statement on Friday, Aug. 28, 2026.

Why it matters

The affirmation gives the government another vote of confidence in its economic strategy as Go leads efforts to strengthen the country’s fiscal position while creating conditions for greater private investment.

JCR cited the Philippines’ high and sustained economic growth potential, solid domestic demand, low external debt and substantial foreign exchange reserves. Despite slower growth, the agency expects the economy to recover in the second half of 2026 and return to high growth rates over the medium term.

Frederick Go

The Finance chief said fiscal reforms reinforce investor confidence in the Philippines.

The rating agency also recognized progress in fiscal consolidation. The deficit-to-GDP ratio narrowed to 5.6 percent in 2025 from 5.7 percent in 2024, while government debt settled at 63.2 percent of GDP at end-2025.

A stronger buffer

The Philippines’ current account deficit narrowed to 3.3 percent of GDP in 2025 from 4.0 percent in 2024, supported by electronics exports, remittances, business process outsourcing revenues, tourism receipts and direct investment inflows.

External debt remained manageable at 30.3 percent of GDP, while foreign exchange reserves reached $110.8 billion, equivalent to more than seven months of imports.

Reforms in focus

JCR also highlighted measures aligned with the government’s push to attract investments and accelerate industrial development, including the CREATE MORE Act and public-private partnerships that complement government infrastructure spending.

The agency recognized efforts to promote high-value technology, maximize domestic mineral resources and develop advanced manufacturing, particularly semiconductors and electronic components.

For Go, the affirmation strengthens the government’s case that fiscal consolidation and investment-focused reforms can reinforce creditworthiness while supporting jobs and inclusive economic growth. —Daxim L. Lucas| Ed: Corrie S. Narisma