Philippines' 'timely' budget passage helps restore growth momentum: Moody's

ABS-CBN News

Posted at Jan 09 2020 03:51 PM | Updated as of Jan 09 2020 04:30 PM

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MANILA – The timely approval of the 2020 national budget will help regain economic growth momentum that was lost when the previous year's allocations were delayed, debt-watcher Moody’s said Thursday. 

The P4.1 trillion national budget, which is 12 percent higher compared to the P3.7 trillion the previous year, is “credit positive” and will help sustain gross domestic product growth despite global risks, Moody's said in a statement.

"In essence the timely, still a bit late, we’re expecting a full 12 months utilization of the 2020 budget, is the key to helping restore GDP growth to where it was prior to 2019," Christian De Guzman, Moody's Investor Service Sovereign Risk Group's senior vice president told ANC.

A bigger budget is "an ambitious act on the part of the government to execute but we do see this as a supporting factor for growth in general in 2020," he said.

-- with a report from Cathy Yang, ABS-CBN News