Senator Sounds Alarm on Economic Stability
Senator Sherwin Gatchalian issued a stern warning on Tuesday, November 18, 2025, highlighting the severe economic repercussions of ongoing political destabilization discussions. The lawmaker, who chairs the Senate Committee on Finance, connected these talks to tangible negative trends in the country's financial health.
Key Economic Indicators Show Decline
In an official statement, Gatchalian pointed to three critical areas of concern: the depreciation of the Philippine peso against the US dollar, a persistent slump in the local stock market, and a worrying drop in foreign direct investments (FDI). He stressed that negative sentiment, fueled by controversies surrounding government projects, is a primary driver behind these issues.
"Even simple talks of destabilization aren't good for us," the senator stated. "Right now, we see the peso weakening against the dollar and the stock market going down. Who would still invest in us in this kind of situation?"
Impact on Household Spending and Growth
Gatchalian further explained that this loss of confidence extends beyond international investors. Household consumption, which constitutes 60 to 70 percent of the economy, is also at risk. When public sentiment turns negative, people naturally reduce their spending, which directly slows down economic activity.
He also identified slower government spending as a significant drag on economic expansion. This slowdown is linked to the alleged anomalies in flood control projects managed by the Department of Public Works and Highways. The combined effect of these factors contributed to a disappointing 4.0 percent economic growth in the third quarter of the year.
Providing concrete data, Gatchalian noted that FDI fell by a dramatic 40.5 percent to $494 million in August. This plunge was attributed mainly to lower investments in debt instruments, signaling a retreat of foreign capital.
This economic warning comes amid reports that the Armed Forces of the Philippines (AFP) is verifying information about an alleged effort by an active-duty soldier to oust the administration of President Ferdinand Marcos Jr. AFP Chief of Staff General Romeo Brawner Jr. confirmed that their intelligence community is reviewing a list circulating online that names government and retired military officials supposedly involved in a destabilization plot.
