Philippines: Fitch seen marginally downgrading PH growth outlook – 12 Jun 2017

  • Debt watcher Fitch Ratings said on 12 Jun 17 it might downgrade its growth outlook for the Philippines in 2017 following the weaker-than-expected expansion in 1Q17.
  • The downgrade revision is likely “marginal” only, said Sagarika Chandra, associate director for sovereign ratings.
  • The Philippine economy grew only 6.4% in the 1Q17 due to slower public spending, but Socioeconomic Planning Secretary Ernesto Pernia on 9 Jun 17 said growth in 2Q17 may come in at 7%.
  • Chandra said martial rule recently declared over the entire Mindanao group of islands following violence in Marawi City has no impact yet on the growth outlook. The enactment into law of the administration’s tax reform package may also be a positive for credit rating, said Chandra.
  • The measure recently hurdled the House of Representatives and will be tackled at the Senate when it resumes session in Jul 17.

External Link :