Malacañang yesterday said it is confident that the Philippines will be okay even after credit watchdog Moody’s Investor Service warning that a shift in government policies may affect the country’s economic growth.
Presidential Communications Office Secretary Martin Andanar, in a text message to reporters yesterday, stressed that the country’s economic fundamentals are still robust.
“The economic fundamentals remain strong. The poverty rate had dropped. Inflation rate is stable. Government-private contracts continue to be honored. We will be ok,” he said.
In a report released yesterday Moody’s said the Philippines’ growth prospects could be undermined by a shift in government policies.
Despite the warning, Moody’s said the Philippine banking system would be stable in the next 12 to 18 months due to “robust fundamentals of the system and the country’s macroeconomic stability.”
The warning came following Duterte’s declaration of independent foreign policy in September.
Duterte went to China a month later to improve ties amid maritime disputes where he announced before Filipino and Chinese businessmen that he would “separate” from the United States.
His economic managers, Finance Secretary Carlos Dominguez III and Socioeconomic Planning Secretary Ernesto Pernia, were quick to explain that Duterte meant he would pursue regional integration and not break ties with the US.