Moody’s Investors Service raised a red flag over health and safety in the Philippine as COVID-19 cases in the country topped the 500,000 mark.
The debt watcher said health and safety has been identified as a source of “highly negative risk” for the Philippines and India.
Moody’s said, “Improving healthcare access in emerging economies, alongside aging populations across higher-income Asian economies, could spur demand for healthcare products and services.”
It added governments facing budgetary pressures may seek to constrain healthcare spending.
Moody’s said the growing demand for healthcare services and infrastructure spending may increase fiscal challenges.
It added increased pressure on infrastructure spending may also lead to higher burdens on utilities and other infrastructure providers in the region as state-owned infrastructure companies tend to play a key role in stimulus measures to aid economic recovery.