S&P expects Philippines economy to rebound in 2022

S&P believes the vaccine rollout will accelerate the country’s growth in 2022.
S&P believes the vaccine rollout will accelerate the country’s growth in 2022.

S&P Global Ratings has maintained its “BBB+” rating on the Philippines in expectation of an economic rebound in the following months and the next year.

The Philippines.- S&P Global Ratings has said that it believes the Philippines’s economy could rebound once the Covid-19 pandemic is contained.

S&P has maintained the Philippines a “BBB+” rating, which means it has adequate capacity to meet its financial commitments. It said the Philippines BBB+ rating will remain unchanged for half a year and could last up to two years

According to Business World, the firm stated: “We affirmed the ratings because we believe the Philippines will continue to have good economic recovery prospects once the Covid-19 pandemic is contained”.

S&P also believes the government’s fiscal performance will strengthen and that GDP will grow 7.9 per cent in 2021.

A bill imposing taxes on gross gaming revenue for casinos that hold an offshore gaming licence was recently introduced to the Senate in a bid to replenish state revenues after the Covid-19 pandemic.

Senator Pia Cayetano stated: “It will not only plug the loopholes in our country’s tax code that led to issues of confusion surrounding the operation of POGOs.

“It will also prevent similar issues in the future, which could gravely undermine our Government’s power to impose and collect the right taxes.”

Metro Manila casinos allowed to operate at reduced capacity

Metro Manila casinos have been allowed to return operating at a reduced capacity by the Philippine gaming regulator.

A week ago, the Philippines’ president announced Metro Manila was moving to general community quarantine until May 31. However, it was unknown if the measure also reached casinos.

Although casinos are now allowed to operate at a reduced capacity, the gaming regulator has not confirmed if venues have opened their doors.

Casinos at Entertainment City shut in March. For now, Okada Manila, City of Dreams Manila and Solaire Resort and Casino have not updated their websites to announce a reopening.

GCQ allows only essential travel in and out of Metro Manila. Public transportation will operate at reduced capacity.

In May, PAGCOR announced that licensed casinos and PAGCOR-operated casinos brought in GGR of PHP25.74bn (US$536.2m) in Q1 2021, which represents an increase of 19.0 per cent from PHP25.80bn (US$538.5m) in Q4 2020.

However, PAGCOR reported that Philippine GGR was down 43.9 per cent year-on-year, mainly due to the impact of Covid-19 restrictions.

Some 82.1 per cent of Philippine GGR came from Entertainment City, which hosts four casino venues: City of Dreams Manila, Solaire Resort and Casino, Okada Manila and Resorts World Manila.

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