Moody's: Peace deal a boost to Philippine economy

MANILA, Philippines - Debt watcher Moody's Investors Service on Monday said the peace agreement between the government and the Moro Islamic Liberation Front (MILF) is a positive development for the Philippine economy.

“The pact also promises to boost growth and investment in what is one of the poorest– although resource-rich– parts of the country,” Moody's said in a research note, adding that the agreement will ensure political stability and economic growth in Mindanao.

Moody's said the Comprehensive Agreement on the Bangsamoro signed on Thursday has a greater chance of success due to more favorable terms provided to the Bangsamoro people, including greater fiscal autonomy.

The agreement provides for a wealth and power sharing deal between the government and the MILF.

The debt watcher said the greater stability will encourage investment in the region and provide scope for the development of profitable industries such as mining and agribusiness. Moody’s said the region is rich in mineral deposits like lead, zinc, iron, copper and gold, valued at about $312 billion.

Moody's expects the Philippines to grow by 6.5 percent this year.