The Philippines is one of the fastest-growing emerging market (EM) economies. However, gross domestic product (GDP) per capita remains relatively low (USD 3,870 per annum, similar to Egypt). Business process outsourcing and tourism are two of the biggest contributors to the economy. The manufacturing industry is of decent size, especially electronics, automotive, and food processing. The country has few natural resources, with the notable exception of nickel ore. Economic activity is expected to remain very robust in the coming years, which will eventually boost income per capita, and increase the likelihood of ratings upgrades.

Chile is one of the powerhouses of the Latin American continent, boasting to be one of the strongest growing economies in the region. Backed by a per capita GDP of USD 17,067.8, the World Bank classifies the country as an “Upper-Middle Income, Developing” economy. Its strength is largely attributed to its mining sector, being one of the top exporters of minerals and agricultural products such as copper ore, refined copper, carbonates, fish fillets, and pitted fruit, generating approximately USD 54.91 billion of revenue to the country (OEC, 2024). We believe Chilean sovereign spreads should remain stable despite the rising volatility in the markets.