The Philippine economy will likely continue to perform well this year despite the political noise, geopolitical risks, and tariff wars, an economist said.
Rizal Commercial Banking Corp. chief economist Michael Ricafort told the Philippine News Agency on Friday that so far, the impact of former president Rodrigo Duterte's arrest on the Philippine economy is still minimal.
"The recent political noises (are) manageable so far, as the relatively orderly process on March 11, 2025 could still send positive signals on respect for rule of law, and institutions locally and internationally, as the process was completed all in a day," he said.
"For the meantime, the effects on the economy would still be minimal, as manifested by the affirmation of the country's favorable credit ratings at 1-3 notches above the minimum investment grade despite political noises since late last year and some geopolitical risks including the tensions between China and the Philippines."
Ricafort said the country's strong economic fundamentals remain intact, as one of the fastest-growing economies amid favorable demographics.
He added that so long as business and economic fundamentals are intact, which would allow foreign investors to be profitable, the government's bid to attract more investors would likely not be affected.
Ricafort said the bigger risk to economic growth is US President Donald Trump’s protectionist policies.
The stricter immigration rules could weigh on some overseas Filipino workers' remittance, which could slow down global trade, investments, and employment, he said.
Ricafort noted, however, that the 6 percent lower end of the government's economic growth target this year could still be attained.
"It is possible to sustain GDP (gross domestic product) near 6 percent levels in the coming quarters due to favorable demographics and the continued recovery of some businesses," he said.
He said the possible increase in government spending for the May 2025 elections and ramped-up spending on infrastructure would also help boost growth.
PNA PHOTO
