Rewriting RP constitution may tip over economy: official
abs-cbnNEWS.com | 06/05/2009 2:51 PM
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MANILA - A legislators' initiative to rewrite the Philippines constitution may push the stalling economy into reverse, a senior aide to President Gloria Arroyo warned Friday.
"What concerns me... are the impacts of such political discussions on the economy," current economic planning secretary and former senator Ralph Recto said in a statement.
He said personal consumption had fallen while capital formation had shrunk in the three months to March, leading to a 10-year low gross domestic product growth of 0.4 percent.
"These are directly linked to public sentiment. Simply put, an anxious outlook results in timid consumption and investment spending," Recto said.
"There is an economic cost to political instability and political uncertainty. In this challenging time of the global economic crisis, let us not add more shocks to our resilience," he said.
Recto's recent statement follows sentiments from various sectors' especially the business groups, including the Makati Business Club and the Philippine Chamber of Commerce and Industry. The two groups said the charter change initiative is ill-timed since the country is "in the brink of recession," as leading economic indicators showed contractions.
President Arroyo's allies in the House of Representatives hastily passed a resolution this week to amend the 1987 charter, fueling suspicions that this is a move to extend President Arroyo's 9-year term, which ends in June 2010.
The House went on recess this week, with key economy-related bills left hanging. -- with Agence France Presse
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