MANILA - Martial law is “manageable” for the economy if it is contained in Mindanao, but it will be “negative” if expanded to cover the entire country, Moody’s Investor Service said Tuesday.
“It tends to provide a distraction with regards to the governance issues,” Moody’s senior credit officer Christian de Guzman told ANC’s Market Edge with Cathy Yang.
De Guzman noted how the Thai economy was negatively affected when the Philippines’ Southeast Asian neighbor was placed under martial rule.
President Rodrigo Duterte declared martial law in Mindanao last week following deadly clashes between government extremists and Maute extremists.
De Guzman said Moody’s “understands the reasoning” behind martial law but was concerned over the President’s rhetoric.