Philippine bid to boost foreign investment will stall
Subject The Philippines's current account deficit and foreign investment problems. Significance The Philippines has just said July was the fourth consecutive month in which exports increased, but the current account deficit is nonetheless widening. Meanwhile, foreign direct investment (FDI) pledges are down. President Rodrigo Duterte’s government has identified four items of legislation to boost FDI, but they are struggling to make their way through Congress. Impacts GDP growth for 2019 will likely be close to 6%, but below the government’s targeted 6-7%. Recent declines in iron and steel imports suggest there will be bottlenecks in developing infrastructure. The hardship experienced by rice farmers following the introduction of a rice tariff could be a major issue in the 2022 elections.