THE country’s economic officials will hold another road show in the United States to update existing and potential investors in government securities on the economic prospects of the Philippines.
The road show will be held from October 22 to 28, covering the cities of Los Angeles, Boston, New York and Philadelphia.
The delegation is composed of Finance Secretary Cesar V. Purisima, National Treasurer Rosalia de Leon and Assistant Governor Ma. Cyd Tuaño-Amador of the Bangko Sentral ng Pilipinas (BSP).
“The Philippines is poised to remain a bright spot. Updating investors offshore on the country’s economic outlook is a prudent exercise, as it helps keep appetite for our government securities,” Purisima said.
The delegation seeks to provide its foreign audience with updates on the economic prospects of the Philippines; the government’s outlook on inflation; the fiscal balance; and other factors that contribute to the country’s creditworthiness.
In the World Economic Forum’s Global Competitiveness Report, the Philippines jumped 33 notches from 85th in 2010-2012 survey to 52nd in the 2013-2014 survey.
For the first time in its credit history, the government has also secured investment-grade sovereign credit ratings from all three major international credit-rating agencies—Fitch Ratings, Moody’s Investors Service and Standard & Poor’s. All three credit-rating agencies gave the Philippines investment-grade status in 2013, while Standard & Poor’s similarly upgraded the Philippines another notch to a “BBB” rating.
The government looks to boost growth, measured as the gross domestic product by up to 7.5 percent this year, 7 percent to 8 percent next year, and 7.5 percent to 8.5 percent by 2016. Inflation is expected from 3 percent to 5 percent this year, and 2 percent to 4 percent next year and in 2016.
For 2015 the government has pegged its financing requirement at P700.8 billion. Of this amount, 14 percent will be sourced through foreign borrowings, while 86 percent will be raised through domestic borrowing.
David Cagahastian