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Republic of the Philippines
- Bond: ROP 4.375 30ROP 4.625 28
- Indicative Yield-to-Maturity (YTM): 4.798% 4.990%
- Credit Rating : BBB
Detailed Information
Country Overview
AS OF 27 Feb 2025- The Philippines is the world’s 34th largest economy, with an estimated gross domestic product (GDP) of about USD 470 billion. As of 2024, services accounted for approximately 65.8% of the total GDP, while manufacturing contributed 17.9%. Electronic products made up 56.9% of its export goods, followed by agricultural products (8.7%) and minerals (4.7%). The country’s natural resources include timber, petroleum, nickel, cobalt, silver, gold, salt, and copper.
- As of 2023, the Philippines’ main export partners are the USA (15.7%), ASEAN (15.2%), China (14.8%), and Japan (14.2%).
Macro Fundamentals
AS OF 27 Feb 2025- The Philippines is one of the fastest-growing economies in the world, expected to grow by an annual rate of 6.2% in 2025 and 2026. This growth is underpinned by a resurgence in capital formation, increased infrastructure spending, and robust consumer spending.
- A 75-basis-point rate cut to 5.00% is projected by end 2025, given the steady improvement in the inflation rate, which is expected to decline to 3% in 2025 due to lower retail prices.
- The current account deficit is expected to narrow, driven by a lower fiscal deficit as the government targets a reduced debt-to-GDP ratio in the coming years.
Risk & Catalysts
AS OF 27 Feb 2025- The economy is driven by strong consumer spending, bolstered by a young population and remittances sent home by 10.2 million overseas Filipino migrant workers.
- Tariffs imposed by US President-elect Trump could affect Philippine trade, potentially leading to wider deficits.
- Upside risks to inflation may arise from persistent foreign exchange weakness, although this could be offset by weaker energy prices.
- A significant proportion of the labor force is still employed in the informal economy, which limits tax revenues for the government.
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