The Davao City Chamber of Commerce and Industry (DCCCI) has welcomed the recent upgrade of the Philippine credit rating as this will help the business sector.
“These ratings upgrades are a vote of confidence in our economy, which attracts investment” said John Carlo B. Tria, DCCCI president, of the two credit upgrades of the Philippine credit rating.
Tria said these upgrades will boost the business sector as these will provide a better business outlook in the country.
He added that for these ratings to be sustained, government must immediately make moves, particularly in intensifying investments in the agriculture sector.
“If properly implemented, policies and programs to boost agriculture and food production such as those announced by the Department of Agriculture late January, such as the Kapital Access for Young Agripreneurs and Agriasenso programs will allow us to keep food costs low, and give us a better handle in our food supply in this age of disruption,” he explained.
Ratings and Information Inc., a Japan-based ratings agency, upgraded the Philippine credit rating to “BBB+” from “BBB” and assigned a “stable” outlook for the Philippine economy as it based its upgrade on the better fiscal conditions and the infrastructure spending.
Global credit monitoring company, on the other hand, also made similar upgrade as it even projected that the economy would grow by 6.4% and 6.5% in 2020 and 2021, anchored on government infrastructure spending and high private consumption.
Tria said: “High consumption fuels local demand for locally produced goods and services and boosts local business thereby building a strong local economy in Davao. This, in particular, will strengthen our economy to deal with disruptions, such as the fears that the COVID (Coronavirus disease) will result in lower tourist arrivals.”
“Strong private consumption, in particular, will be helped by keeping food prices low, since about 50-60% of the average family expenses are in food,” he added.