Fitch Ratings has placed the Philippines under a negative outlook, citing mounting risks from global energy volatility and softer public investment, even as the country retains its investment-grade BBB rating.
The credit watcher said the Philippines’ long-standing economic outperformance is facing pressure, pointing to rising government debt and “deteriorating external finances” as key vulnerabilities.
The agency also flagged disruptions in infrastructure spending and the ripple effects of the energy crisis as factors that could erode the country’s growth edge over regional peers.
Still, Fitch expects the economy to post moderate expansion, projecting gross domestic product growth at 4.6 percent in the medium term as public investment gradually recovers, even as elevated energy prices dampen consumption. This is below the government’s 5 to 6 percent growth target for the year.
Responding to the outlook revision, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said economic fundamentals remain intact.
“The BSP is closely monitoring the impact of higher oil prices and geopolitical developments, particularly the conflict in the Middle East, on inflation and the overall Philippine economy,” Remolona said.