Senator Win Gatchalian sounded the alarm, saying that ongoing destabilization talks are wreaking havoc on the economy, as evidenced by a weak peso, a slump in the stock market, and declining foreign direct investments (FDI).

“Yung simpleng usapan lang ng destabilisasyon, hindi na maganda para sa atin. Ngayon nakikita nating mahina ang piso kontra dolyar, ‘yung stock market pababa.  Sino pang mamumuhunan sa atin kung ganyan ang sitwasyon?” asked Gatchalian, chair of the Senate Committee on Finance.

He stressed that negative sentiment doesn’t just impact investor confidence; it also dampens domestic consumption. “Malaking bahagi ng ekonomiya ang household consumption, almost 60 to 70 percent. Kapag hindi maganda ang sentimyento ng mga tao, naaapektuhan nito ang paggastos o pagbili,” he explained.

According to Gatchalian, slower government spending amid controversies involving projects implemented by the Department of Public Works and Highways has also adversely affected economic expansion, resulting in a disappointing 4% growth in the third quarter of the year. 

Aside from the weak currency and sluggish equities market, FDI continues to decline. It dropped 40.5% to $494 million in August, mainly due to lower investments in debt instruments.

Photo by Mark Cayabyab/ OS GATCHALIAN