Midterm election result reflects ‘dissatisfaction’ with economy

THE outcome of the midterm elections reflects general dissatisfaction with President Ferdinand R. Marcos, Jr.’s handling of the economy, GlobalSource said.

Voters took issue mainly with high food prices and swelling debt, according to a report by GlobalSource Country Analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac.

“What is also significant in the outcome of this midterm election is that the electorate seems to be showing its general dissatisfaction, especially with the economic management of the Marcos administration,” they said.

“While inflation continues its downtrend, prices remain elevated, especially for food products.”

They added that the downtrend may not be sustainable as it was achieved “by extending a food subsidy, which will only be in effect for a few months, and by reducing tariff duties on rice imports, obviously for political reasons.”

Headline inflation slowed to 1.4% in April from 1.8% in March and 3.8% a year earlier. This brought average inflation in the first four months to 2%.

In June, Executive Order 62 slashed rice import tariffs to 15% from 35% until 2028.

Mr. Guinigundo and Ms. Mañalac also noted the debt situation, which stood at P16.68 trillion at the end of March. 

Philippine debt as a share of gross domestic product rose to 62% at the end of the first quarter, the highest in 20 years.

“President BBM will have to outdo himself and focus more on building a legacy of good economic, political and social governance by pursuing strategic policy and structural reforms in order to invest the Philippine economy with greater potential and resiliency,” they said. — Aubrey Rose A. Inosante