A Welcome Return Of Investor Confidence

The Philippines’ economic prospects this summer appeared bleak. Speculation of a third ‘people power’ revolution amid opposition attempts to impeach President Gloria Arroyo over allegations that she cheated in the May 2004 election was hammering local asset prices. The benchmark stock index on July 6 hit a 6-month low after falling more than 16% from its March closing high. Between June and September, the currency, the peso, was trading close to its October 2004 all-time low of PHP56.56/US$. Arroyo’s economics team had resigned; tax reforms aimed at averting a fiscal crisis were stalled; business leaders had defected to the opposition

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