It may be too early to tell if President Rodrigo Duterte’s rambling speeches and often expletive-laden outbursts will have a long-term effect on the Philippine economy.
But they have initially unnerved market investors and American and European businessmen, most of whom have been trying to convince their community to place their bet on the Philippine economy.
The peso dropped to a seven-year low of 48.33 against the US dollar Thursday, while the stock market has struggled to below the 8,000-point mark, after cheering Mr. Duterte’s May election victory.
Analysts partly blamed the Philippine market slump amid the uncertainty over the timing of the US Fed decision to increase interest rates again.
Mr. Duterte seems unperturbed by criticism and the market’s reaction to his off-the-cuff remarks that include disrespecting US President Barack Obama and rebuking the European Union and the United Nations for their censure of the violent anti-drug campaign which has left over 3,000 people dead.
Defenders of Mr. Duterte have sought to reassure investors that the Philippine economy was doing well, citing strong fundamentals that have supported growth. Budget Secretary Benjamin Diokno said the peso’s depreciation was not a cause for concern and urged investors to focus on fundamentals.
Despite his maverick stance and threats, Mr. Duterte has stayed the course—his rhetoric has not actually led to cutting off of military ties with the US, exiting the United Nations and reversing the economic policy.
Mr. Duterte’s penchant for foul language and ignoring trade and political ties, however, will not serve the interest of the Philippines in the global stage. The country is in the midst of forging free-trade agreements with some European countries and is aiming to join the larger Trans-Pacific Partnership economic bloc.
Mr. Duterte’s wisdom and skill will be key to strengthening bilateral relations, attracting foreign investments and generating jobs. He also has all the opportunity to make the Philippines a tiger economy, which his predecessors have dreamed of.
The President’s statesmanship is needed to advance the interest of Filipinos.