Economic fundamentals sound despite weak peso — RaulCon

Industrialist Raul T. Concepcion said yesterday the country’s economic fundamentals remains sound despite the recent weakness of the peso against the dollar which feel to a historic low of 56.22 on Jan. 29 due to political concerns ahead of the May 10 presidential election. Concepcion said the peso-dollar exchange rate does not reflect the true state of the economy.

"The peso’s fall against the US dollar was due to speculation, the attempted coup, election concerns and the continuing political scandals," Concepcion said.

However, in spite of all that has happened, Concepcion said, the economy has still managed to perform as evidenced by a still positive gross domestic product (GDP) growth.

The economy grew by 4.5 percent in 2003 or better than the earlier estimate of 4.2 percent, the low-end of the government’s target growth range for the year.

Concepcion pointed out that foreign investors who read about the current political wrangling would only be convinced to stay away.

As such, Concepcion urged all political candidates to practice the highest degree of statesmanship to keep stability in the country.

"Partisan and personality politics does not inspire our people, and only promotes divisiveness," he warned.

He noted further that "our political system over the last 50 years has not been responsive to our people who have become helpless, desperate and disillusioned by traditional politician or tradpols."

Concepcion also appealed to media to observe sobriety and statesmanship through tempered and balanced reporting.