Manila: Senator Sherwin Gatchalian on Monday highlighted the Philippines' investment-grade credit rating as a testament to the nation's robust economic fundamentals. He noted that stable inflation and improving price conditions have bolstered confidence in the country's economic trajectory, even as some foreign investors voice concerns over corruption.
According to Philippines News Agency, during a virtual press briefing, Gatchalian emphasized the country's success in maintaining low inflation rates in recent quarters-hovering below 2 percent-as a key factor in the positive assessments by credit rating agencies. These agencies closely examine price stability when evaluating macroeconomic strength. "In fairness naman sa administration, mababa ang inflation natin . nasa around between 1.4 to maybe 1.7. At kung makikita natin 'yung components, bumaba ang presyo ng bigas at presyo ng pagkain (In fairness to the administration, our inflation is low, around 1.4 to 1.7 percent. And if we look at the components, prices of rice and food have gone down)," Gatchalian stated.
He further explained that maintaining low food prices is essential, as increases in basic commodities are among the primary challenges faced by ordinary households. Ensuring a consistent decline in prices, he argued, is crucial for sustaining stable public sentiment.
Gatchalian also pointed out that the country's investment-grade status remains unscathed despite governance challenges. "Yung S and P (Standard and Poor's), retained our investment-grade rating, which is very good despite all of this issue on corruption (S and P retained our investment-grade rating, which is very good despite these corruption issues)," he remarked, referencing the stock market performance indicator.
He acknowledged that rating agencies have recognized the continued functionality of institutions, especially as investigations into questionable flood control projects progress. Despite ongoing corruption controversies, Gatchalian expressed confidence in the Philippines' investment outlook for 2026. "Ako, optimistic ako na maganda pa rin ang magiging pagtingin sa atin ng mga investors sa 2026 (I'm optimistic that investors will continue to view us positively in 2026)," he said.
However, the senator warned that economic growth might decelerate if public infrastructure spending diminishes, stressing the importance of sustaining construction momentum to support overall economic expansion.
