NEDA: Martial law extension has 'no discernible impact' on economy

MANILA, Philippines —  The National Economic and Development Authority on Thursday said the one-year martial law extension in Mindanao won’t hurt the country’s economy.

Congress on Wednesday swiftly granted President Rodrigo Duterte martial law powers over the entire southern region for an extra year to defeat jihadist militants and communist rebels operating there.

In a press conference, NEDA undersecretary Rosemarie Edillon said that while it is hard to determine the effect of martial law extension in Mindanao, the prolonged declaration has ‘no discernible impact’ on inflation, tourism, construction and shipping.

“There was even a slight decline [in inflation]. Period of January to May (before Martial Law) and June to November, there was even a slight decline. While in Luzon and Visayas, inflation stayed the same,” Edillon said.

She then cited improved investments in Mindanao compared to the rest of the country as well as positive results of the central bank’s Business Expectations Survey and Consumer Expectations Survey in the fourth quarter

"In fact, there was a slight uptick for the second period, which is after the Martial Law declaration in Mindanao, mainly because of Davao,” Edillon said.

“But again, this also goes to show that the rest of investors actually were able to isolate the Marawi Crisis from the Martial Law implementation, and that did not affect their decisions,” she added.

On May 23, Duterte imposed martial law in  Mindanao after the principal Islamic city of Marawi was stormed by heavily-armed homegrown extremists who pledged allegiance to ISIS.

In July, Congress overwhelmingly voted to prolong military rule in Mindanao until yearend after the proclamation reached its 60-day constitutional limit, giving Duterte more time to stabilize the strife-torn region where ISIS was gaining influence.

In a rousing address to troops last October, Duterte declared Marawi liberated from pro-ISIS extremists after five months of fighting that gave state forces their first taste of urban warfare.

But in his letter to Congress, Duterte cited continuing threats of ISIS-inspired terrorists in seeking for an extension of martial law, adding that those who escaped the Marawi battle were actively recruiting to carry out future assaults.

He also warned about heightened guerilla attacks following the collapse of peace talks between the government and communist rebels.

Speaking to reporters on Wednesday, Duterte said the option to declare a nationwide martial law is “on the table.”