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. The bigger risk is that, similar to Indonesia, the government turns to populist policies in a bid to appease protesters, resulting in higher risk premia on Filipino assets. The large current account deficit leaves the peso particularly vulnerable to downward pressure.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services