Philippine fiscal risk rated high as political and growth outlook worsens
A country-risk assessment placed six other categories at an elevated level, while security received a low-risk rating.
WR Advisory Group rated Philippine fiscal and sovereign risk as high in its first Philippine Political and Country Outlook Report. The Manila-based firm also reported a worsening outlook for that category, political stability, economic growth, and policy and regulatory risk.
The assessment covered eight categories. Apart from fiscal and sovereign risk, six were classified as elevated and one, security, as low. The firm judged the outlook stable for security, institutional integrity, social and labour conditions, and external and geopolitical risks.
Among the financial pressures, WR cited government debt reaching ₱19.07 trillion by the second quarter's end, or 66 per cent of gross domestic product. It put debt service during the first half at ₱1.23 trillion. Second-quarter growth was 2.3 per cent year-on-year, following 2.8 per cent in the first quarter.
WR's political survey findings showed that 18 per cent of respondents aligned themselves with the Marcos faction in June, four percentage points lower than in March. The Duterte faction accounted for 37 per cent, while the opposition had 20 per cent.
The findings also highlighted household financial strain: 32 per cent reported daily difficulty affording basic needs, while 29 per cent encountered that difficulty once or twice weekly.
