Political noise clouds investor outlook as Marcos faces impeachment bids

FOREIGN AND DOMESTIC investors remain wary of impeachment proceedings, which economists said could heighten policy uncertainty and governance risks, as the Philippines' two highest officials face ouster complaints that may weigh on market sentiment.

- By Chloe Mari A. Hufana Reporter

"Impeachment proceedings can weigh on confidence in policymaking by distracting attention from execution and reinforcing perceptions of institutional fragility, making stability, transparency and clear economic direction even more critical," John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, told BusinessWorld in a Viber message.

He noted that credibility shocks often lead companies to delay investment, raise risk premium and soften capital inflows even when fundamentals remain stable.

The Philippine economy grew 4% in the third quarter of 2025, the slowest in more than four years, which Economic Secretary Arsenio M. Balisacan partly attributed to lower infrastructure spending amid the flood control controversy. The country's full-year gross domestic product report will be released on Jan. 29.

President Ferdinand R. Marcos, Jr. is facing three ouster bids after he was accused of benefiting from the infrastructure projects, though the last two cases were declined by the House of Representatives last week in the absence of its secretary-general.