The economic team of the Duterte administration left for the US Tuesday to attend the World Bank-International Monetary Fund meeting and talk to international credit-rating agencies, US newspapers and investors to “counter adverse media reports” about the Philippines.
This developed as London-based think tank Capital Economics said President Rodrigo Duterte’s antics and recent tough talks against his critics had increased the potential downside risks to the economic outlook of the Philippines.
“What has unnerved investors is a string of inflammatory statements and erratic foreign policy changes which have raised questions about Duterte’s judgement and his commitment to the rule of law,” Capital Economics senior Asia economist Gareth Leather said.
Capital Economic said Duterte was threatening to completely upend the country’s foreign policy by “opening an alliance” with China, while at the same time ordering US troops out of the Philippines.
“His anti-drugs campaign, which has led to thousands of extrajudicial killings, has generated negative headlines across the world,” it said.
Economic Planning Secretary Ernesto Pernia told reporters in a media briefing the economic team was set to meet with Moody’s Investor Service, Fitch Ratings and Standard & Poor’s to counter the negative news about the country.
“[We’re] meeting with three rating agencies, and also because we want to counter adverse media reports coming out,” Pernia said before leaving for the five-day US trip.
Pernia, Budget Secretary Benjamin Diokno, Finance Secretary Carlos Dominguez III and Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. would attend the ministerial meetings of the World Bank and International Monetary Fund.
Pernia said aside from the WB and IMF meetings, the economic team would also meet with foreign investors and international media, including Washington Post and The New York Times.
Pernia said the Philippines “continues to be robust and the government is focused on reducing inequality and poverty.”
He said the war on drugs campaign would add to the improving investment climate, infrastructure development and the program to reduce red tape and corruption. “The war on drugs is really aimed at peace and order,” Pernia said.
Pernia also cited the confidence among local business groups such as the Makati Business Club and the Philippine Chamber of Commerce and Industry. “We talked to local businessmen. They are still cheering the president on the war on drugs,” he said.
“I just met with three foreigners this morning—one from Goldman Sachs and two from Moodys and they were quite amazed or surprised. They observed what people are saying outside in the international media. The situation here is really much less problematic than portrayed by media,” Pernia said.
“Even the embassies are not that concerned because they keep coming here. France was here the other day, they are interested in investing in transportation, railways, airports. Belgium was also here recently, and Korea,” Pernia said.