Low inflation to boost economy, says Go

Secretary Frederick Go, the Special Assistant to the President for Investment and Economic Affairs, said the low inflation, which hit a nearly a five-year low of 1.4 percent in April 2025, will support economic growth this year.

“This will provide welcome relief for Filipino households. This should have positive effects on the real GDP growth of our country,” Go said.

Go said the reaffirmation of the Philippines’ investment-grade credit rating by Fitch Ratings is also a strong vote of confidence in the economic trajectory.

“Fitch’s affirmation of the Philippines’ BBB investment-grade rating with a stable outlook reflects confidence in our macroeconomic stability, sound policies and ongoing reforms, including measures to enhance governance and attract private investment,” Go said.

“It is noteworthy that Fitch also recognizes the advantage presented by relatively lower US tariffs, which presents opportunities for our export sector,” he said.

Fitch Ratings maintained the Philippines’ long-term foreign-currency issuer default rating at “BBB” with a stable outlook, citing the country’s strong medium-term growth prospects and success in controlling inflation.

The “BBB” rating indicates low default risk and a capacity to meet financial obligations that is adequate compared to similarly rated peers.

The credit rater expects the Philippine economy to grow by 5.6 percent this year and to surpass 6 percent growth in the medium term, supported by infrastructure investments and structural reforms such as economic liberalization and the promotion of public-private partnerships.