Budget Secretary Amenah F. Pangandaman has lauded Fitch Ratings' recent decision to maintain the Philippines' investment grade rating at “BBB,” above the minimum investment grade by a notch and maintaining a stable “outlook.”

Pangandaman, chairperson of the inter-agency Development Budget Coordination Committee, emphasized the importance of Fitch's recognition of the country's robust medium-term growth as a contributing factor to the stable rating outlook.

"We hope to sustain our momentum for growth and keep our lead as one of the fastest-growing economies in Southeast Asia," Pangandaman said in a statement.

Fitch projected a 5.8 percent expansion in the economy for 2024, with expectations of sustained gross domestic product (GDP) growth surpassing 6.0 percent in the medium term, fueled by investments in infrastructure and public-private partnerships.

Fitch also noted the country's debt levels, sound macroeconomic policies, and the central bank's effective inflation targeting framework.

Since May 2022, the BSP has raised the policy rate by 450 basis points to 6.5 percent to manage inflation within the government's targeted range of 2.0 percent to 4.0 percent.

Recent data from the Philippine Statistics Authority indicated headline inflation at 3.9 percent in May, with a year-to-date average of 3.5 percent.

Fitch expects inflation to moderate to 3.8 percent in 2024 and 3.4 percent in 2025, still within the government's target range.

Looking ahead, Fitch expects the general government debt to remain stable at 54 percent of GDP by 2025, with the current account deficit projected to narrow to below two percent of the economy.

"For our part at the Department of Budget and Management, we will continue to pursue the priorities under our Agenda for Prosperity such as the Build Better More infrastructure program and accelerate our reform agenda to ensure that our government spending will yield higher productivity and contribute to the growth story of the country," Pangandaman said.