S&P Global Ratings upgraded its economic growth forecast for the Philippines from 4.3% to five percent this year, following the country’s strong 7.1% expansion in the third quarter.
In a statement, S&P said that the economic growth in the Philippines has surprised them “on the upside.”
The credit rating agency’s new prediction now meets the government’s expectation of a four to five per cent economic growth at year-end.
In addition, the debt watcher stated that the emergence of the new Omicron COVID-19 variant may trigger more mobility controls and lockdowns in the Asia Pacific (APAC) region.
S&P noted that APAC’s previous pandemic policies have put it “on a weaker recovery path than the rest of the world.”
The Philippines itself could be affected by this new variant as it is still slow in vaccinating its citizens. Only 32.9% of the country’s population has been fully vaccinated against the virus as of November 29.