MANILA - The Philippines is expected to become a $1 trillion economy by 2030, according to Washington-based analytics firm IHS Global Insight.
In its latest "Sovereign Risk Review," the international analytics company said it expects the country's gross domestic product (GDP) to more than triple in the next 15 years.
IHS upgraded its outlook on the Philippines' credit rating to positive from stable, which means it may raise the country's rating, set at the minimum investment grade of BBB-.
“The Philippines has been on a long ratings upgrade trajectory over the last few years. The key driver to these upgrades has been successively strong current account surplus generation with newfound sources of export earnings other than workers’ remittances and lower energy import bills,” said Jan Randolph, IHS director of sovereign risk.
The Philippines is the only sovereign in Asia that got a positive action from IHS.
IHS said strong macro-fundamentals improved governance and institutional reforms helped boost the country's outlook.
"Apart from the clearly strengthened macro-financials over the last few years, the more recent upgrade to the Philippines' outlook to positive in the third quarter rested on improved governance standards and reforms enhancing competitiveness under the Aquino administration," it said.
Meanwhile, Editha Martin, executive director at Investor Relations Office, said a favorable credit rating will help bring borrowing costs down, and improve business confidence which helps boost investments and job creation.
“Although the Philippines now enjoys investment grade sovereign credit ratings from a wide list of international debt watchers, further building confidence on the economy is a never-ending task as we aim for sustainability of gains. The positive assessment of IHS on the Philippines is a welcome development,” Martin said.