The president of the Philippines, Ferdinand “Bongbong” Marcos Jr., earlier this week pledged to resume the “Build, Build, Build” infrastructure programme of his predecessor, Rodrigo Duterte. While extra spending on infrastructure is welcome, it is likely to lead to a further widening of the current account deficit and put renewed downward pressure on the peso. Meanwhile, inflation in Vietnam fell last month due to a sharp decline in the fuel price component. We expect this fall to be mirrored across the rest of the region over the coming months as fuel price inflation drops back.
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