Growing political tensions are starting to carry an economic cost, with warnings that prolonged uncertainty could further weaken the peso, raise import costs, and hurt investor confidence.
A solon called for calmer and more responsible public discourse as heightened political rhetoric threatens to add pressure on the country’s macroeconomic stability.
He cited the peso’s decline to P61.721 against the US dollar as of Friday’s close, saying financial markets are beginning to reflect anxiety over the current political climate.
“The cost of all this political chatter is starkly evident in the peso’s performance against the dollar. While external factors are at play, analysts are now citing an ‘uncertainty premium’ attributed to political tensions,” Sen. Win Gatchalian said.
He warned that the growing unease could dampen confidence among investors, both in the region and globally, if political actors fail to moderate their statements and actions.
“We cannot allow this to continue. The country’s economic growth and the welfare of our people are at stake,” he said.
He said the peso’s weakness should serve as a clear warning from the financial markets that political instability can quickly spill over into the broader economy.
“Malinaw na hudyat ito galing sa ating financial markets. Mahalagang magpakita ang lahat ng maayos na pampublikong diskurso na magiging kapaki-pakinabang at may pananagutan,” he emphasized.
A weaker peso could make imported goods more expensive, including fuel and rice, which may add pressure to inflation and affect household spending.
Gatchalian urged public figures and political groups to avoid rhetoric that could fuel uncertainty, saying responsible discourse is necessary to protect economic growth and the welfare of ordinary Filipinos.