The Philippines is expected to achieve a robust economic growth rate this year, driven by rising employment, remittance inflows, and government investment, debt-watcher Moody’s Ratings said.

Based on the latest Moody’s Sovereigns – Asia-Pacific Outlook on Wednesday, Jan. 15, the country’s economy, as measured by the gross domestic product (GDP), is projected to expand by 6.1 percent this year.

Moody’s growth projection aligns with the government's target range of 6.0 percent to 8.0 percent GDP growth for 2025,

Key factors contributing to the positive economic outlook include increased household spending, fueled by higher employment rates and remittances from overseas Filipino workers.

Public investment in infrastructure and other key sectors is also expected to play a significant role in driving economic expansion.

Additionally, ongoing reforms aimed at attracting foreign investment and improving market liberalization are anticipated to further boost private sector participation.

Despite the positive outlook, Moody’s noted that the country faces several challenges. Inflation, although declining, remains a concern, and the government will need to carefully manage monetary policy to ensure price stability.

Government debt levels, while stable, are high, and addressing this issue will be crucial to maintaining long-term fiscal sustainability.

Political risks also loom large. The government faces the challenge of fulfilling its electoral promises while also prioritizing fiscal consolidation.

Social unrest remains a potential risk factor that could undermine investor confidence and economic performance.

Geopolitical tensions and potential shifts in U.S. trade policies could also impact the Philippine economy.

The country is integrated into the broader Asia-Pacific economic framework, making it susceptible to regional and global economic trends, Moody’s said.