THE government is facing growing constraints to reducing its budget shortfall, a Fitch Group unit said on Monday. BMI Country Risk & Industry Research said external headwinds would challenge fiscal consolidation efforts, with a “key risk” being “escalating US trade protectionism.” “If fully implemented, this would further dampen external demand and add to existing structural weaknesses. In turn, this increases pressure on the government to provide economic support.” BMI estimated that government spending would need to increase by about 1.0 percentage point from its current level of 21.9 percent of gross domestic product (GDP) to achieve a medium-term economic growth target of 6.0 percent. “We think that this is fiscally unfeasible,” it said. “The Philippines’ public finances remain fragile, with the debt-to-GDP ratio having risen to around 60 percent from the pre-pandemic level of 40 percent. This places the country among the regional laggards in fiscal recovery.” https://www.manilatimes.net/2025/08/12/business/top-business/philippines-seen-facing-wider-budget-deficit/2165870 (ICE SINGAPORE)

Fonte notizia: The Manila Times, 12 August 2025