Corruption’s fallout

It’s mid-November, and expectations are rising about cases being filed in court related to corruption in flood control and other infrastructure projects.

- ANA MARIE PAMINTUAN

The court indictments are needed not just to diffuse the outrage that is driving mass protests set for Nov. 30, and the rallies set in two venues beginning this Sunday, spearheaded by the Iglesia Ni Cristo (INC) to call for accountability, according to the organizers.

Apart from assuaging public anger, credible court cases are also needed to show that the government is serious in its anti-corruption crackdown, by punishing crooks and implementing meaningful, long-lasting reforms. These measures are needed to rescue our economy and prevent our country from turning into Asia's basket case.

Consider: gross domestic product growth slowed to 4.0 percent in the third quarter, the lowest in four years or since the height of the COVID pandemic. That figure makes it unlikely that the government will achieve its GDP target range of 5.5 to 6.5 percent for the year.

Meanwhile, net foreign direct investment inflows plunged by 40.5 percent last August from the same month in 2024, and by 22.5 percent for the first eight months of this year.

The peso is weakening, bucking regional trends, although economists are divided on whether this is a plus or minus for the country.

With the freeze on public works projects, public spending has been drastically cut, pulling down GDP growth. The construction industry has taken a major hit, including its workers. The sector accounts for a large segment of national production, and any slowdown also affects consumption, which is bad news for our consumer-driven economy. Consumption in the third quarter slowed to 4.1 percent.

Political instability arising from the corruption scandal is adding to investor jitters.