MANILA, Philippines - Tight classrooms, no farm to market roads, poor medical care -- the country's problems are not new.
But the future is now brighter after the Philippines' credit rating was upgraded to a notch below investment grade by Moody's Investor Service. The upgrade was attributed to an improved economy and a fiscal revenue buoyancy in face of deteriorating global demand.
Economist Joel Mendoza explained that a credit rating is a country's ability to pay its debts. "Pag malakas ang kakayahan na magbayad ng utang, mas mataas ang kanyang rating," he said.
Mendoza added a higher credit rating would mean a lot to an ordinary Filipino because this translates to lower interest rates for the country which has an outstanding debt of P5 trillion.
"Sa isang baetang o 1 percent na baba sa interest rate, nakakatipid ng P50 billion ang gobyerno kada taon," said Mendoza.
The P50 billion savings could go to the government's public service budget.
This could mean higher funds for education, infrastructure and health, which are among the top 5 agencies that received the biggest budgets this year.
The government could build more school buildings, highways or hospitals and this could translate to more jobs.
"If you have more funds for infrastructure, more will invest locally, more investments mean more jobs for our people," said Mendoza.