10 new era in the Philippines

new era in the Philippines

How will a Duterte presidency affect the Philippine economy?

Brash and irascible city mayor Rodrigo Duterte is all set to be sworn in as the next president of the Philippines. DW examines what this means for the nation's economy, which has seen buoyant expansion in recent years.

the longtime mayor of the southern city of Davao, has claimed victory in the presidential election held on Monday, May 9, after his opponents conceded defeat.

His campaign for president in the past several months was characterized by provocative and profane rhetoric, but shed little light in terms of economic policies.

This has given rise to uncertainty among firms and investors about the measures Duterte and his team are willing to take to keep economic growth on track while easing restrictions on doing business.

"A string of highly controversial comments has unnerved investors, and his victory represents a step into the unknown," Gareth Leather, Asia economist at the UK-based economic research consultancy Capital Economics, said in a research note.

The Philippines has been one of the fastest-expanding economies in the region in recent times, with growth averaging 6.2 percent in the last six years under the outgoing President Benigno Aquino.

During this period, the country also recorded a significant improvement in the area of fiscal deficit and implemented reforms needed for bolstering growth. As a consequence, the country's credit rating also improved to an investment grade.

A slew of challenges

But despite the Aquino administration's successes, a multitude of problems continue to badger the Southeast Asian economy.

One of the most populous nations in the region, with some 100 million people, the Philippines has over a quarter of its population mired in poverty. At the same time, it has witnessed a swelling gap between the rich and the poor, in addition to worries over rampant corruption, poor quality of public services and deficient physical infrastructure, including roads, ports and airports.

While Duterte's campaign focused on slamming the political establishment in the capital Manila and on combating crime, he barely addressed the economy. However, news agency Reuters quoted him as saying on Monday, May 9, that he would "hire the best economic minds" to run the nation's economy.