BY ANGPING & ASSOCIATES SECURITIES
Moody’s Investors Service has maintained its below-target growth projections for the Philippines for this year and next even as it flagged more risks to its outlook for 2015.
Moody’s earlier this month upgraded the country’s credit score a second notch into investment grade to Baa2 with a stable outlook, up from its Baa3 rating with a positive outlook given in October last year.
According to the global debt watcher, the economy could still grow by 6.3% this year and 6.5% in 2015 as private consumption, which has contributed around four percentage points to gross domestic product (GDP) growth in the past four years, remains robust.
Both estimates fall short of the 6.5% to 7.5% target growth in 2014 and 7.0% to 8.0% target growth in 2015.
For next year, Moody’s cited infrastructure bottlenecks, particularly the expected March-July shortfall in power supply in Luzon, which contributes about 70.0% to national economic output , as the main domestic risk to growth.