'Corruption scandal won't derail Phl economy'

The Philippines’ widening corruption scandal is unlikely to cause a lasting impact on economic growth, but risks are rising that the Marcos administration could resort to populist measures to quell public unrest, according to the UK-based research firm Capital Economics.

- - Keisha Ta-asan

In its Asia Economics Update, Capital Economics said the ongoing graft probe linked to flood control projects may disrupt certain sectors in the near term, but it is not expected to derail the broader economy.

“The ongoing investigation into corruption in the Philippines brings the risk of further protests over the coming months. So long as any unrest is limited in scale and duration, the economic and financial market impact is likely to be limited,” Jason Tuvey, deputy chief emerging markets economist at Capital Economics, said.