Institute of International Finance (IIF) has shown support to Sen. Grace Poe and Interior Secretary Mar Roxas in becoming the next president in 2016 saying it would be good for the Philippine economy whoever will be elected, but added Binay’s presidency may undermine the reforms introduced by recent administration.
According to its latest Global Economic Monitors issued on July 15, the Washington based finance giant lowered its 2015 economic growth forecast for the Philippines to 6.1 percent from 6.3 percent due to uncertainties in next year’s national elections as well as stock market and debt troubles in China and Greece.
“The upcoming presidential election will likely provide a short-term economic boost through government spending and investment, but maintaining policy continuity will be a challenge,” IIF said.
“The typical pre-election infrastructure investment surge would favor Interior and Local Government Secretary Manuel Roxas (President Aquino’s running mate in 2010), but it seems likely that investors will stay on the sideline and wait to see how the new administration shapes up,” it added.
“Sen. Grace Poe, an independent with ties to Mr. Aquino’s Team PNoy, has also recently emerged as a potential contender.”
However, “[i]f the more populist Vice President Jejomar Binay wins, he could undermine the government’s PPP strategy if/when he takes office,” IIF said, referring to the Aquino administration’s centerpiece public-private partnership program.
IIF said a victory for Poe or Roxas would gave way for the continuation of the Aquino administration’s agenda and br market positibe adding “it is too early to tell how the market would react if Binay wins,”
IIF members “include banks, insurance companies, asset managers, sovereign wealth funds, pension funds, central banks and development banks.”
In aid of endorsing a political leader, it said its mission was “to support our members in prudently managing risks and to advocate for regulatory, financial and economic policies that are in the broad interest of our members and that foster global financial stability and sustainable economic growth.”
H/T: Inquirer.net; and photo.
