The next PH president will upset your wallet
Every vote counts towards our economic downfall. (Photo: Rappler)
In 1986, the Philippines ousted a dictator. Thirty-six years later, the Filipino people have voted his son back into power. What does this mean for the economy? The 2022 elections have yet to show a finalized count and yet, the country is already paying the price from early results.
The Philippine peso is set to drop its value in the coming days. Ferdinand “Bongbong” Marcos Jr. was favored by 56% of respondents in a survey conducted from April 16 to 21 by pollster Pulse Asia Research Inc. In a survey conducted by Bloomberg among various Philippine investors however, Marcos placed last while Vice President Leni Robredo took the top spot.
Euben Paracuelles, chief ASEAN economist at Nomura Holdings Inc. in Singapore said “there is more uncertainty” on Marcos Jr’s stand on key policy issues, something he failed to elaborate in his platform. It also didn’t help that Marcos didn’t show up to any presidential debate.
In another interview, Ruben Carlo Asuncion, Chief Economist of the Union Bank of the Philippines, mentioned that the market “prefers Leni Robredo” for president.
The financial worries are confirmed as the local stock barometer opened the week at 6,632.35, reflecting a decline of 127.55 points or 1.89%. The Philippine Stock Index ended 0.6% down at 6,720.93, its lowest close in nine months.
From media stocks all the way to the agricultural sector, Filipinos are expected to scratch their heads over paying for upticked prices with the Philippine peso continuing to weaken against the US dollar.
Investors are basically doing a wait-and-see until the next elected president lays down a proper economic plan. As of now, the leading candidate, Marcos has yet to form an economic team. Manny Cruz, a strategist at Papa Securities, said that “it will be difficult to see a rally for investors will be reacting mainly to global headwinds.”
American financial services giant J.P. Morgan has dropped the Philippines in its investment list below neighbors Vietnam, Singapore, Thailand, and Malaysia. They didn’t mention any names but it probably doesn’t help that the person who is winning the presidential race as of now can’t even step foot in America.
It’s all the more concerning that Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the next administration will inherit a “much better” economy given that the debt to GDP ratio of the Philippines rose from 39.6% before the pandemic to a now whopping 60.5% because of COVID-19.
Diokno’s claim comes from policies and structural reform, namely “a sound tax system which we reformed many times under this administration.”
Basically, this means the government will ask for more of our money to pay off their accumulated debts over the years. Sounds about right.
