by Genalyn D. Kabiling
The public has nothing to worry about the local economy despite a warning raised by a foreign credit rating agency that possible changes in government policies pose risk to growth.
Presidential Communications Secretary Martin Andanar asserted that the country’s economic fundamentals remain robust while poverty incidence has started to drop under President Duterte’s watch.
“We will be ok,” Andanar said in a text message. “The economic fundamentals remain strong. The poverty rate had dropped. Inflation rate is stable. Government-private contracts continue to be honored,” he added.
Moody’s Investors Service recently announced that banks in the Philippines remain generally robust largely due to the stability and resiliency of the domestic economy. It gave a “stable” outlook for the local banking system over rate next 12 to 18 months.
The global debt watcher, however, cautioned that country’s growth prospects could be undermined, if there is a “significant shift” in the government’s policies.
Still, Moody’s said it expected that the country’s gross domestic product to expand 6.5 percent in 2016 and 2017, higher than other countries in the Association of Southeast Asian Nations.
“Strong domestic consumption and an increased pace of investments, backed by macroeconomic stability, underpin the robust growth expectations,” it said.
“Business sentiment remains strong, banking sector credit growth will stay robust, and the economy has demonstrated resilience to global shocks.”