The Philippines’ public debt has been falling fast, helping its chances of credit upgrades and further attracting foreign capital.
On Friday, the government said total public debt as a fraction of gross domestic product fell to 49% in 2013. A decade ago the ratio stood at 75%.
The government of President Benigno Aquino III has made debt reduction a priority, including by raising taxes and reducing corruption in government spending. The government has also borrowed more locally to reduce exposure to currency fluctuations.
That’s helped the country win ratings upgrades. Standard & Poor’s decision in May lifted the country’s debt ratings by a notch above investment grade. Moody’s Investors Service in October raised the Southeast Asian nation’s sovereign rating to investment grade. Fitch Ratings, meantime, gave the nation an investment grade over a year ago.
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