Political uncertainty and concerns over institutional credibility are emerging as bigger risks to the Philippine economy, according to a think tank report cited by Philstar Biz . The fallout is already being felt in investor sentiment, the peso, and monetary policy expectations.
The think tank warned that prolonged political noise could undermine economic stability, potentially deterring foreign investments and weakening the currency. Analysts have noted that policy unpredictability adds to the challenges faced by the central bank in managing inflation and growth.
Observers say that restoring confidence in institutions and achieving political consensus are crucial to mitigating these risks. The report highlights the need for clear policy direction to support the economy amid global headwinds.