Angara alarmed with the future of RP's economy
as it leans towards recession

Senator Edgardo Angara expressed his concern over alarming statistics of the recent release of the National Statistical Coordination Board (NSCB) where our economy is seen to be inching towards recession.

With the grave fall from 3.9 to 0.4 percent GDP rate during the first quarter of 2009 which shows that it has almost reached the negative percent, the country has reached its lowest performance in 10 years.

Angara, who chairs the Senate Committee on Finance, affirmed to the government and the public that indeed we are facing the fact that the global crisis has reached our shore.

"Optimism is hard to attain when we are deeply challenged as we face this global crisis and experiencing it as it hits us with its strongest force here in our country" said Angara

Statistics show that the country's survival, so far, has been courtesy of the remittances abroad as they turn to grow by 3.1 percent from last year. Notwithstanding the difficulties and economic problem the demand for our services abroad continues to increase. However, Angara emphasized that "this does not guarantee the stability of economy."

"While OFW remittance has continued to grow, consumer spending, which it usually fuels failed to follow. Per capita expenditure decreased by 1.1 percent and seasonally adjusted personal consumption expenditure contracted by 3.3 percent n the first quarter of 2009," added Angara.

According to a New York based think tank Global Source, the increase in OFW remittances in March could be the last of this year, as it could have merely reflected the repatriation of savings and separation pay given to laid off OFWs.

The senator said that, at its best, OFW remittance will have a flat rate growth in 2009 and government will have to adjust their labor policies to prioritize hiring of the locals.

In the Senate budget deliberations last year the Senate packaged an economic stimulus to pump-prime the economy as preparation for financial crisis. It was designed to make public investments but while this carefully packaged spending is at hand, the implementation lies in the Executive where it faced difficulties in doing so and now bearing its bitter fruit as we slide down towards recession.

Amidst this global financial problem, Angara stays positive and eager to act in betterment of our state.

"Learning its lesson the government will start moving vigorously and aggressively in propping up the economy," said Angara.