Fitch warns of economic risks from Marcos-Duterte feud in the Philippines

Fitch Ratings warned that a prolonged conflict between President Marcos and Vice President Duterte could harm the Philippine economy. The political tensions have increased ahead of the May 2025 midterm elections, despite current economic growth remaining solid. The alliance between Marcos and Duterte has fractured after Duterte's recent controversial remarks, including threats against the President. This has led to an impeachment complaint against her from progressive groups. Despite the political turmoil, the economic team remains focused on achieving an "A" credit rating. Fitch expects government debt to decrease and forecasts a GDP growth of 5.7 percent in 2024, below the government's target.