New king new rules?

It’s assumed that with a change in administration, economic policies are also likely to change depending on the priorities of the new president and his/her team.

The economic gains of the Philippines should not slip back quickly after President Aquino steps down next year when his term ends, if we're to go by the prediction of economists.

Economists at a foreign bank are saying that wheels that most of the structural changes in the Philippines needed for economic advancement were already in place before President Aquino assumed power in 2010, and they see little risk of a reversal in the country’s growth momentum even after he steps down in June 2016.

Our GDP has steadily risen for a decade and government debt steadily fell since 2004 even as the business-process outsourcing (BPO) sector, which has proven a rich source of foreign exchange, similarly rose in big increments due to incentives introduced in the early 2000s.

While growth has historically been volatile for various reasons, the average growth rates under various presidents since 1986 hovered around 3 percent to 4 percent until around 2005. Thus, except for Estrada whose term ended abruptly after less than three years, each president had served long enough to witness a full economic cycle with periods of expansion and contraction.

The economy is seen to continue to expand even after the term of the Aquino administration ends next year and despite the lower growth trajectory seen due to lower global output growth this year.

This is good news for investors worried that with a change in administration next year, economic growth will inevitably head south. 

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