Moody's Investors Service continues to see robust growth for the Philippine economy for this year and 2015 with the growth level still at 6.0 percent level.

It projects growth for 2014 to reach 6.5 percent although next year's target is a tad lower at 6.4 percent.

Its projection for this year is the lower end of the government's 6.5-7.5 percent growth target while its forecast for 2015 is lower than the government's 7.0 to 8.0 percent target.

Last year, the domestic economy surpassed expectations after posting a growth of 7.2 percent, higher than the government's 6.0 to 7.0 percent despite the devastation caused by typhoon Yolanda.

Currently, the country holds an investment grade rating from the three major debt watchers.

Moody's gave the Philippines an investment grade rating of Baa with positive outlook in October 2013, the third for the country last year after Fitch Ratings did the same in March and Standard & Poor's last May.

The investment grade rating was achieved due to strong economic performance, ongoing fiscal and debt consolidation, and political stability and improved governance.

The Philippines is the sole country in Asia given a positive outlook by Moody's.

Despite the slight drop in Moody's growth forecast for the domestic economy for 2015, the debt watcher said a downgrade is not in the offing.

“A downward rating movement is unlikely over the near term,” it said.

Moody's said the domestic economy continues to enjoy macroeconomic stability anchored on well-managed inflation, strong external payment position, and stable and resilient banking system.

It also cited that the popularity of the current national administration among the populace remains and “supports the further institutionalization of reforms for good governance.”

However, it noted the emergence of macroeconomic instability, including the substantial deterioration in fiscal and debt metrics, increase in debt-servicing costs, and/or erosion of the country's external payments position.*PNA

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