New president of the Philippines makes encouraging start

Investors in the Philippines have responded positively to the marked change inrhetoric of the country’s new president, Rodrigo Duterte. After spooking markets in the run-up to May’s presidential elections with a string of controversial comments, Duterte has settled some nerves by promising to maintain the macroeconomic policies of his predecessor and resisting the temptation to fill his cabinet with political cronies. The appointment of Carlos Dominguez, a respected former agriculture secretary, to the position of finance secretary has been especially well received. In his state of the union address on Monday, Duterte adopted a careful stance on the country’s maritime dispute with China and announced an immediate unilateral cease-fire with Maoist rebels. It is still clearly early days, but the change in tone leaves us feeling more confident about the country’s prospects. We are maintaining our view that the Philippines will remain one of the fastest growing economies in the region over the coming years.