`Naysayers, Duterte critics and the bias mainstream media painted a doom and gloom Philippine economy when then Mayor Duterte led the surveys days before election day.
After Duterte assume the presidency, mainstream media continued singing the same tune that the Philippine economy is headed to the bust cycle.
On November 2, 2016, a netizen took to Facebook blaming Duterte’s loose mouth for the free falling peso.
LOOSE MOUTH. FALLING PESO
1. PHP was Asia’s worst performer in Q3 2016
Yes there is pressure across all currencies due to coming US interest rate hikes. No that is not the only factor. The peso is worst versus all Asian peers.
“Credit Suisse Group AG and Rabobank Groep predict the currency will weaken past 50 per dollar next year, a level last seen in November 2008. Pioneer Investment Management Ltd. doesn’t see the peso as a long-term, strategic investment. The currency fell to a seven-year low of 48.618 in October, and was Asia’s worst performer in the third quarter, when it fell 3 percent.”
2. Duterte’s policies create risk.
“Economic impact is difficult to gauge at this stage and may only be seen longer term, but the uncertainty on his foreign policy could deter foreign investment,” said Trang Thuy Le, a macro strategist in Hong Kong at Credit Suisse. “For now, we think it warrants a higher degree of risk premium and volatility to be priced in the Philippine peso.”
3. Political catalyst + other issues
“Uncertainty in Philippine political landscape is the catalyst, but not the sole reason” for the peso’s weakness, said Celeste Tay, a senior sovereign analyst in Singapore at Loomis. “Current-account surplus is thinning and remittance trend is arguably negative.”
Locals (especially the instant economist & investment analysts who get their expert insights from memes, fake news & Duts worship blogs) dismiss these figures and issues. Some cite strong fundamentals – mainly OFW & BPO inflows. Their views – and money – are not enough to offset negative foreign sentiment & keep the peso up.
Today, January 26, 2017 tweeted that the Philippine economy grows 6.8% in 2016, faster than 5.9% a year ago.
JUST IN: Philippine economy grows 6.8% in 2016, faster than 5.9% a year ago | @RexCNNPH
— CNN Philippines (@cnnphilippines) January 26, 2017
Krizette Laureta Chu, the fiery Waray blogger couldn’t contain her emotions and took to Facebook to share the good news that she said will break the hearts of the LP and the yellow bleeding hearts.
BREAKING! AND BREAKING THE HEARTS OF LP PEOPLE EVERYWHERE:
Economy grew by 6.8 percent in 2016, a bigger percentage than in 2015: 5.9), just in case you were thinking of crediting PNoy.
We are second only to China in Asia, which also happens to be our new BFF.
Because BFFs that keep the peace together, get rich together.
(And don’t you know it, but the Opposition would rather see this country’s economy fail just so they can rub it in Duterte’s face. That’s how EVIL they are. Eh… wala.)
Your reaction? Disappointed? Or happy?
Source: CNN PH, Krizette Chu