Duterte Impeachment Deepens Marcos Feud Before Philippines Vote

The political landscape in the Philippines is heating up as the impeachment trial of Vice President Sara Duterte unfolds, further deepening the feud between her family and that of President Ferdinand Marcos Jr. The ongoing proceedings have the potential to significantly impact the political dynamics and alliances within the ruling party and the opposition, as well as the upcoming elections. In this article, we will explore the economic implications of this deepening feud and its potential consequences for the Philippine economy, particularly in terms of investor confidence and foreign direct investment (FDI).



The deepening feud between the Duterte and Marcos families has created a climate of uncertainty and instability, which can deter investors. According to the World Bank, the Political Stability and Absence of Violence/Terrorism index for the Philippines in 2023 was -0.57 points, indicating a weak political environment (The World Bank, 2023). This political instability and uncertainty can lead to a decrease in investor confidence, as seen in a survey conducted by the American Chamber of Commerce of the Philippines. In this survey, 40% of respondents cited political instability as a major concern for doing business in the Philippines (AmCham, 2023).



Political instability and uncertainty can also negatively impact FDI inflows. The Philippines has seen a decline in FDI inflows in recent years, which can be partly attributed to political instability and uncertainty. According to the Bangko Sentral ng Pilipinas, FDI inflows in 2022 amounted to $8.3 billion, a decrease from $10.5 billion in 2021 (BSP, 2023). While there are other factors contributing to this decline, the political feud between the Duterte and Marcos families may have exacerbated the situation.



The political instability and uncertainty created by the deepening feud between the Duterte and Marcos families can also negatively impact economic growth. The Philippines' GDP growth rate in 2022 was 6.1%, which was lower than the government's target of 6.5% to 7.5% (PSA, 2023). While there are other factors contributing to this growth rate, the political feud between the two families may have played a role in slowing down economic growth.

In conclusion, the deepening feud between the Duterte and Marcos families has the potential to negatively impact the Philippine economy, particularly in terms of investor confidence and FDI. The political instability and uncertainty created by this feud can deter investors, leading to a decrease in FDI inflows and potentially slowing down economic growth. As the impeachment trial of Sara Duterte unfolds, the political dynamics and alliances within the ruling party and the opposition will likely shift, further impacting the upcoming elections and the country's economic trajectory.