Amid ongoing political controversies, President Ferdinand R. Marcos Jr.’s focus on critical national priorities resonates positively with investors, according to Michael Gerard Enriquez, President of Sun Life Investment Management and Trust Corp.
During the Canadian Trade Mission’s visit to Sun Life Philippines’ headquarters in Taguig City on Thursday, Enriquez noted that investors remain unperturbed by the current political developments, including impeachment complaints against Vice President Sara Duterte.
Political noise is not alarming
Enriquez emphasized that investors view the ongoing political turbulence as mere “noise” with little bearing on market sentiment.
“In terms of investor sentiment, I don’t see any significant impact. This is not the first time we’ve witnessed political posturing, especially as we approach the midterm elections,” he said. “For us, it’s more of a distraction rather than a market determinant.”
Marcos’ focus on economic priorities
Enriquez commended President Marcos for his pragmatic approach to governance, particularly in advancing key economic initiatives such as the swift passage of the 2025 national budget.
“The President has been doing an excellent job in prioritizing what matters—what the country needs,” he said. “This demonstrates the government’s commitment to ensuring sustained economic growth, which will undoubtedly catch the attention of foreign investors.”
Economic projections remain positive
Sun Life retained its 2024 gross domestic product (GDP) growth forecast for the Philippines at 5.6% despite a slower-than-expected 5.2% GDP growth in the third quarter of 2024. The economy is projected to accelerate to 6.2% GDP growth in 2025.
- Inflation Outlook: Inflation is expected to stabilize at 3.3% in 2024 and decline further to 2.8% in 2025, providing a more predictable environment for investors.
- Currency Forecast: The peso-dollar exchange rate is forecast to close this year between P57 and P58 per dollar, with a projected range of P54 to P57 in 2025.
Investor confidence unshaken
Despite the political noise, Enriquez underscored that the government’s economic priorities and policy direction remain the key drivers of investor confidence. “The administration’s focus on structural reforms and economic stability sends a strong signal that the Philippines is serious about attracting foreign investments,” he concluded.
This outlook reinforces the belief that while political events may create short-term distractions, they are unlikely to derail the country’s long-term growth trajectory.