Duterte policy changes seen clouding PH outlook

Despite the country’s solid macro fundamentals, London-based economic research firm Capital Economics said “unstable politics” posed a downside risk.

Capital Economics senior Asia economist Gareth Leather said in a July 31 report titled “Asean: Still Searching for Purpose at 50” that in the case of the Philippines, “the foundations are also in place for strong growth… given its healthy demographics, low wages, strong fiscal position and its booming business process outsourcing industry.”

But Capital Economics warned that “a string of sudden policy changes and controversial comments from the country’s new president, Rodrigo Duterte, have clouded the outlook.”