Credit watchdog Moody’s Investor warned the Philippine government on Monday, October 31, that despite the predictions of the Philippines’ banking system stability for the next 12 to 18 months, changes in government policies could still affect the country’s economic growth.
Moody’s Investors said that the country’s real gross domestic product growth is expected to be achieved in 2016 and 2017.
“Strong domestic consumption and an increased pace of investments, backed by macroeconomic stability, underpin the robust growth expectations. Business sentiment remains strong, banking sector credit growth will stay robust, and the economy has demonstrated resilience to global shocks,” the credit watchdog said.
However, this came with a warning to the Philippine government that “the country’s growth prospects could be undermined, if there is a significant shift in the government’s policies,” it said.
President Rodrigo Duterte has repeatedly said in different occasions that he wanted to have an independent foreign policy for the country, particularly making sure to lessen, if not totally remove, the meddling of foreign governments.
Aside from this, the President also threatened to completely cut ties with allies of the Philippines, particularly the United States, although he later backtracked from these statements, assurance that alliances will remain in place. These statements had caused the public to worry that these might just affect the Philippine economy.
However, this warning by Moody’s Investor was downplayed by the Malacañang on Tuesday, November 1, saying that the shift in foreign policies would not affect the Philippines’ economic growth.
“The economic fundamentals remain strong. The poverty rate had dropped. Inflation rate is stable. Government-Private Contracts continue to be honored,” Communications Secretary Martin Andanar said in a text message sent to the media.
Andanar affirms that the country’s growth will not be affected by any shift in foreign policies by the Duterte Administration.
“We will be ok,” Andanar said.