According to the Japanese debt-watcher, its latest rating affirmation reflects the Philippines’ sustained economic growth, driven by solid domestic demand, low external debt, and resilience to global market uncertainties.
The Department of Finance, in a statement, said that for 2025, JCR is projecting the country's real GDP growth to remain in the upper 5 percent range, despite challenges such as shifting global trade dynamics and tariff adjustments.
JCR, it added, also recognized the government’s progress in fiscal consolidation, pointing to the continued narrowing of the fiscal deficit and a projected debt-to-GDP ratio of around 60 percent by the end of 2025.
Key reforms noted
One of the key reforms noted by JCR in its report is the CREATE MORE Act—a landmark legislation that streamlines tax regulations, clarifies value-added tax (VAT) rules, and strengthens the country’s overall tax incentive framework.
According to JCR, this reform has strengthened the tax regime and significantly improved the Philippines’ investment climate, making it more attractive for both local and foreign investors.
The agency also noted in its report the government's push for infrastructure development through the Build Better More program and its proactive approach to leveraging public-private partnerships (PPP). These moves aim to bridge infrastructure gaps while keeping fiscal risks in check.
Notably, JCR cited the faster-than-expected decline in the poverty rate as evidence that economic growth is increasingly inclusive.
“The Marcos Jr. administration is making steady progress in fiscal consolidation, infrastructure rollout, and poverty alleviation,” JCR said in its report.
Confidence in the Philippine economy
Finance Secretary Ralph G. Recto welcomed the affirmation, describing it as “excellent news” and a clear sign that both credit rating agencies and global investors remain confident in the Philippines.
“We remain committed to securing more ‘A’ ratings by staying faithful to our fiscal consolidation plan and Road-to-A strategy,” he added.
Recto also emphasized the significance of recent reforms such as the Capital Markets Efficiency Promotion Act, which are designed to increase the country’s economic growth potential.
An A- rating signals sound creditworthiness, helping the Philippines access cheaper financing and freeing up more resources for development priorities such as infrastructure, healthcare, education, and social services.
It also positions the country to attract more foreign direct investments, which are vital to creating quality jobs and reducing poverty, the DOF said. —Ed: Corrie S. Narisma
