Fitch cited the nation's robust medium-term growth potential, stable debt levels, and strong macroeconomic policies, alongside the central bank's credible inflation targeting framework, according to a statement from the Bangko Sentral ng Pilipinas (BSP) Saturday morning.
Since May 2022, the BSP has raised the policy rate by 450 basis points to 6.5 percent to manage inflation within the government's target range of 2-4 percent.
Recent data shows headline inflation at 3.9 percent in May 2024, with a year-to-date average of 3.5 percent.
Fitch projects inflation to moderate to 3.8 percent in 2024 and 3.4 percent in 2025, and forecasts a 5.8-percent gross domestic product (GDP) growth for this year, driven by infrastructure investments and trade reforms.
The general government debt is expected to remain stable at 54 percent of GDP by 2025, with the current account deficit narrowing below 2 percent of GDP by the same year.
