The international hunt for yield has helped the Philippines sell its largest-ever offshore bond, but despite a ratings upgrade by S&P, it must balance fiscal easing with a balanced currency.
Investors are on a rollercoaster ride as the spread of the COVID-19 widens globally. Looking to the future, the Philippines government is seeking to support and stimulate the nation’s economy.
Domestic demand will be the key economic driver for growth in the Philippines 2020, on the back of increased government spending, relatively benign inflation and supportive monetary policies. However, the full effects of the coronavirus outbreak are yet to be calculated.
The country's national treasurer explains the government's action plan to facilitate a sovereign rating upgrade to the coveted A status. Prioritising domestic debt fundraising over international and expanding its product mix to include sukuks and green bonds are part of the answer.
The Philippines is on track to meet its key 2019 targets. With one of the highest GDP’s in Asia, inflation falling to a new low, and international reserves on the rise, this should be enough to attract investors.
With one of the fastest growth rates in Asia, good news on the job front, plus lower than expected inflation in September, the Philippines economy approaches the year’s end in good condition.
