ADB optimistic on Philippines’ potential as fastest-growing economy
With its unprecedented infrastructure overhaul, tax reforms, and young workforce, the Philippines is poised to become the fastest-growing economy in Asia, according to the Asian Development Bank (ADB). Yasuyuki Sawada, chief economist at the ADB, said the country’s recent credit rating upgrade from S&P Global signifies the “fundamental strength” of the Philippine economy, which has maintained over 6% growth. The Philippines received a credit rating upgrade of BBB+, which means it has “adequate capacity to meet its financial commitments,” but changing circumstances could weaken it. Furthermore, the country’s GDP growth has been among the fastest in Asia, ahead of Vietnam and China. Sawada said the country’s debt is “well under control” and that overall fundamentals are “quite strong,” making it possible for the Philippines to become Asia’s fastest-growing economy. The Philippine workforce is also among the region’s youngest and is proficient in English, making them capable of meeting the needs of technology and business process outsourcing firms, said Sawada.
