Maharlika Investment Corp. president and CEO Rafael Jose Consing Jr. warned that the Philippines may be heading toward stagflation as rising fuel costs linked to Middle East tensions weigh on economic growth.
In a LinkedIn post, Consing said “the trajectory points directly to stagflation,” citing a combination of rising prices and slowing activity as external shocks ripple through the domestic economy.
He added that the situation has evolved beyond geopolitics. “The Middle East conflict is no longer a distant headline; it is a macroeconomic reality that has firmly crossed into our domestic economy,’ Consing said.
Consing said higher oil prices are pushing up transport, logistics and household costs, while also adding pressure on businesses. He cautioned that temporary government measures may offer only limited relief if energy prices remain elevated.
He also flagged risks to remittances if overseas Filipino workers in affected areas are displaced or repatriated, potentially affecting consumption.
“The window for preparation remains open, but it is rapidly closing,” he said.
Consing urged businesses and households to tighten contingency plans, protect cash flow and reassess supply chain risks as the economy faces further external headwinds.
