Finance Secretary Frederick D. Go underscored that the affirmation of Standard & Poor’s (S&P) ‘BBB+’ credit rating with positive outlook for the Philippines is proof of the country’s strong macroeconomic fundamentals and the administration’s sustained commitment to pursuing fiscal consolidation.
“We welcome this development. We will ensure that every policy decision will support sustainable growth and long-term stability,” he said.
“Having a high credit rating will benefit Filipinos because this means cheaper financing for the government, and in effect, more resources for essential public services. This supports our goal of uplifting the life of every Filipino,” the Finance Chief added.
S&P’s ratings reflect the country’s above-average economic growth, relative to its peers, which is supported by firm domestic demand, favorable labor market conditions, lower inflation, and stable overseas remittances.
Since 2022, gross domestic product growth has averaged 5.7%, as economic growth remains broad-based, supported by strong domestic demand and resilient services.
Inflation is stable and has remained below the 2% to 4% target range for eight consecutive months, registering at 1.7% in October 2025.
The labor market continues to show strength, with the unemployment rate from January to September 2025 at 4.1%, outperforming the 4.8% to 5.1% target for 2025 under the Philippine Development Plan (PDP).
S&P expects the country’s growth to remain well above the average for its peers as a result of the government’s fiscal policies and reforms to improve the country’s investment climate.
“The Philippines government has generally enacted effective and prudent fiscal policies over the past decade, in our opinion. Improvements in the quality of expenditure, manageable fiscal deficits, and low general government indebtedness testify to this,” the S&P said in its press release.
The credit rating agency also recognized the government’s efforts to support infrastructure development, which have the highest multiplier effects on the economy.
Moreover, the S&P sees that the passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will continue to support foreign direct investments (FDI) in the next two to three years.
They also acknowledged other reforms such as the liberalization of telecommunications, power generation, and transportation sectors. Meanwhile, renewable energy subsectors such as solar and wind in particular allow 100% foreign ownership.
On the ongoing probe into flood-control projects, the S&P is confident that it will not derail the country’s external strength and healthy growth rate. Fiscal performance is also seen to strengthen in the next two years.
The government’s immediate implementation of stricter measures to enhance transparency and accountability in public infrastructure projects protects the economy by ensuring that infrastructure investments translate into real growth.
A catch-up plan to carefully manage and direct spending towards high-impact projects is already in place to stimulate growth and provide essential services to its citizens.
