SUSTAINED domestic political conflicts may not only impact next year’s polls but also the country’s economic and fiscal performance, according to Fitch Ratings. In its latest brief, Fitch Ratings said the country’s GDP growth could average 5.7 percent this year; 5.9 percent next year; and 6.2 percent in 2026.
SUSTAINED domestic political conflicts may not only impact next year’s polls but also the country’s economic and fiscal performance, according to Fitch Ratings.
Based on the DBCC targets, the government aims to pare down the country’s deficit-to-GDP ratio to 5.3 percent next year; 4.7 percent in 2026; 4.1 percent in 2027; and 3.7 percent in 2028. Meanwhile, Fitch Ratings said inflation could average 3.2 percent this year and 3 percent in 2025 and 2026. Given this outlook, the debt watcher expects this will lead to 100 basis points of rate cuts in 2025.
Fitch Ratings noted that the Philippine peso has already depreciated by nearly 5 percent as of the 11-month period this year.
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