Malacañang on Tuesday downplayed the warning of credit watchdog Moody’s Investor, saying the government’s shift in policies would not affect the country’s economic growth.
“The economic fundamentals remain strong. The poverty rate had dropped. Inflation rate is stable. Government – Private Contracts continue to be honored,” Communications Sceretary Martin Andanar said in a text message sent to reporters.
Andanar believed the Duterte administration’s shift in policies, especially in foreign relations would not affect the country’s growth.
“We will be ok,” he said.
On Monday, Moody’s said the Philippines’ banking system would remain stable over the next 12 to 18 months.
Moody’s said the country’s economy was expected to achieve real gross domestic product growth of 6.5 percent for 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,” it said.
The credit watchdog, however, warned that the changes in the government’s policies may affect the country’s economic growth.
“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 that he wanted to chart an independent foreign policy for the Philippines, saying he would eject any attempts of meddling by foreign governments.
Duterte has also threatened to sever ties with our allies particularly the United States.