The current political challenges will not be a hindrance to the Philippines’ economic transformation, the economic team of President Ferdinand R. Marcos Jr. assured Tuesday.

This, as the country’s economic managers welcomed the S&P Global Rating’s affirmation of the Philippines’ “BBB+” credit rating and upgrade of the credit outlook from “stable” to “positive.”

In a statement issued Tuesday night, the economic team expressed optimism that the improved credit outlook would lead to an upgrade of the country’s credit rating to “A-” within 24 months.

“The economic managers—the Special Assistant to the President for Investment and Economic Affairs, the Finance Secretary, the Budget Secretary, and the National Economic and Development Secretary— stressed that the Philippines is determined to achieve an A rating and the administration is ensuring that the transformation of the economy will not be set back by political challenges,” the statement read.

“The economic managers note that the Philippine economy has proven time and again its resilience against both domestic and external challenges, whether arising from natural disasters, geopolitical risks, election cycle tensions, global or regional financial crises, supply chain gaps abroad, cybercriminal activities, or other crises,” it added.

The S&P pointed to the Philippines’ above-average growth potential, effective policymaking, fiscal reforms, improved infrastructure and policy environment, and solid external position as the key factors for the credit affirmation and better outlook.

The economic team attributed the latest developments to the country’s on-track fiscal consolidation plan, as well as the recent passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and the Public-Private Partnership Act.

They also emphasized sufficient buffers to ensure unhampered strong growth, supported by a robust consumer base, past structural reforms and steady inflows from overseas remittances and business process outsourcing (BPO) receipts.

“Hence, it is business as usual for the Philippine government,” they said, adding that all branches of government are focused on fulfilling their various functions in a whole-of-government approach towards the Marcos administration’s Agenda for Prosperity.

In a separate statement on Wednesday, Department of Budget and Management (DBM) Secretary Amenah Pangndaman said the improved credit outlook is a testament to Marcos’ strong leadership that “has delivered constructive development outcomes,” as stressed by the S&P.

Pangandaman maintained that a whole-of-government approach is key to achieving an “A” credit rating, considering Moody’s rating of “Baa2” with a stable outlook and Japan’s Rating and Investment Information Inc. (R&I) upgrade to “A-” with stable outlook.

“I have always been confident that we can achieve an ‘A’ rating for all credit rating agencies and now, with this latest upgrade from S&P, we are getting closer to achieving this dream,” she said.

The S&P Report also cited the Philippines’ “solid economic outlook anchored by the government’s infrastructure drive and pro-business policies.”

Infrastructure spending reached PHP1.143 trillion from Jan. to Sept. 2024, increasing by 11.9 percent from the PHP1.021 trillion outturn in the same period last year. This is expected to contribute to reaching the 6 to 7 percent growth target for 2024.

Pangandaman also reiterated the DBM’s commitment to implementing structural reforms to enable agencies to accelerate the utilization of their respective budget allocations and ultimately boost economic growth.

The economic team said Marcos’ one-day official visit to the United Arab Emirates also aims to strengthen partnerships with foreign partners.

The Development Budget Coordination Committee is set to hold its 189th meeting on the first week of December, for the regular evaluation of the Medium Term Fiscal Program. (PNA)