The Philippine Chamber of Commerce and Industry (PCCI), the country’s biggest trade group, is optimistic foreign investments will not be slowed by the impeachment push against Vice President Sara Duterte as investors mostly bank on the country’s positive macro-economic outlook, PCCI chairman George Barcelon said.
“Countries in the region have their own issues, but the Philippines fares better in terms of gross domestic product. Investors are really looking for strong macro-economy,” he told DAILY TRIBUNE on Wednesday.
Barcelon said the visit of a 300-member business group, including the Business Council of Canada and the Canada-ASEAN Business Council to the Philippines this month is telling evidence that investors are confident in the local economy.
“The country’s economic team has shared a positive outlook in the mid-term, with manageable inflation rates and strong household consumption,” he said.
The economy grew by 5.2 percent in the third quarter from 6.4 percent in the previous quarter, resulting in a 5.8 percent growth as of September this year, according to the Philippine Statistics Authority.
Despite the decline, the Philippines surpassed Indonesia with 4.9 percent, China with 4.6 percent, and Singapore with 4.1 percent.
Major contributors to the economy in the third quarter included the industry and services sectors which expanded by 5 percent and 6.3 percent, respectively.
Growth in government consumption also hit 5 percent, while household consumption rose faster at 5.1 percent.
University of Asia and the Pacific economics Professor Victor Abola said several foreign investors have also already expressed interest in pursuing projects in the country due to its strong economic indicators, such as higher employment rates and economic policy reforms. “Investments may slightly be affected but most are already committed,” he said.
The national statistician said the country’s approved foreign investments in the third quarter surged by 434.4 percent to P146.75 billion from P27.46 billion recorded in the same period a year ago, reflecting the largest inflows from South Korea.
Two groups consisting of over 70 individuals have filed impeachment complaints against Duterte at the House of Representatives after the Commission on Audit reported the Office of the Vice President spent P125 million in confidential funds in 2022 in just 11 days.
Wider Trump effect
“The political noise has not affected the local markets. Businesses are so focused on the potential impact of Trump 2.0,” Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said.
The Bureau of the Treasury reported higher interest rates for awarded government securities with longer tenors on Monday by over 0.02 points as re-elected incoming US president Donald Trump threatens high tariffs on imports which are seen to increase global inflation.
University of the Philippines economics Professor Ramon Clarete said the government and economic activities will continue as he sees futile attempts for a massive protest by Duterte allies and supporters against President Ferdinand Marcos.
“Vice President Duterte is politically strong only in her City of Davao. If she won in the last national elections it’s only because she was with the Marcos camp. She’s just delusional that she became a vice president or even to become president on her own merit,” he said.
The Duterte camp claims the First Family increases wealth through corruption and wants to seize the vice president’s properties.