Japan's JCR sees Philippine debt-to-GDP ratio stuck in mid-60% range as growth slows
The Japan Credit Rating Agency (JCR) projects that the Philippines' debt-to-GDP ratio will remain in the mid-60% range due to slowing economic growth and fiscal challenges. The report highlights that reduced public infrastructure spending and lower private consumption are hindering the country's path to fiscal consolidation.
Why it matters
This assessment signals potential long-term fiscal instability for the Philippines, which could impact investor confidence and the country's sovereign credit rating.
Manila Bulletin - Japan’s JCR sees Philippine debt-to-GDP ratio stuck in mid-60% range as growth slows
Japan's JCR sees Philippine debt-to-GDP ratio stuck in mid-60% range as growth slows
Tokyo-based Japan Credit Rating Agency Ltd. (JCR) expects the share of sovereign debt to the country's gross domestic product (GDP) to remain stubbornly in the mid-60 percent range, due largely to moderating growth and an expected lag in fiscal improvement.
Tokyo-based Japan Credit Rating Agency Ltd. (JCR) expects the share of sovereign debt to the country’s gross domestic product (GDP) to remain stubbornly in the mid-60-percent range, due largely to moderating growth and an expected lag in fiscal improvement.
In an Oct. 22 issuer report, JCR noted that slowing economic growth due to the fiscal squeeze on public infrastructure projects and a decline in private consumption could throw sand in the wheels of the Philippines’ path to fiscal consolidation.
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