Senator Sherwinn Gatchalian on Tuesday, November 18 expressed alarm over the recent turn of political events in the country, saying that ongoing destabilization talks are wreaking havoc on the Philippine economy.

Gatchalian, chairman of the Senate Committee on Finance, said this is evidenced by a weak peso, a slump in the stock market, and declining foreign direct investments (FDI).

“Yung simpleng usapan lang ng destabilisasyon, hindi na maganda para sa atin (Just simple talks about destabilization, is not good for us),” said Gatchalian, a day after the religious group Iglesia ni Cristo (INC) wrapped up its rally. 

“Ngayon nakikita nating mahina ang piso kontra dolyar, ‘yung stock market pababa.  Sino pang mamumuhunan sa atin kung ganyan ang sitwasyon (Now we see the peso weakening against the dollar, the stock market plunging. Who is going to invest in us if this is the situation),” he said.

The senator warned that negative sentiment doesn't just impact investor confidence; it also dampens domestic consumption. 

“Malaking bahagi ng ekonomiya ang household consumption, almost 60 to 70 percent. Kapag hindi maganda ang sentimyento ng mga tao, naaapektuhan nito ang paggastos o pagbili (Household consumption is a big part of the economy, almost 60 to 70 percent. When people's sentiment is not good, it affects spending or purchasing),” he explained.

Gatchalian also said slower government spending amid controversies involving projects implemented by the Department of Public Works and Highways (DPWH) has also adversely affected economic expansion, resulting in a disappointing 4 percent growth in the third quarter of the year. 

He also said that aside from the weak currency and sluggish equities market, FDI continues to decline, noting that it dropped 40.5% to $494 million in August, mainly due to lower investments in debt instruments.