Stop raising economic fears, House leaders warn Makati Business Club

House leaders cautioned members of the Makati Business Club yesterday not to stoke fears that the economy may likely experience "stagflation" next year, when all important indicators show the Philippines will likely continue to experience modest growth in step with the rest of the world.

House economic affairs committee chairman Rep. Harry Angping (Manila) said interest rates and the inflation rate, and the solid growth in the exports, agriculture and overseas workers remittances sector are solid underpinnings which will bolster the country as it goes through the current political uncertainties caused by the ongoing impeachment trial.

The lawmakers led by Assistant Majority Leader Rodolfo Albano III chided MBC spokesman Guillermo Luz for raising fears of stagflation happening next year, or a situation of high domestic prices coupled with an economic depression. Albano said Luz’s statements "are both unfortunate and even downright irresponsible."

"Mr. Luz should have realized that when the business community speaks out against the country’s economic prospects, then this could very well become a self-fulfilling prophecy with dire consequences for all Filipinos," said Albano.

Other House leaders like, Representatives Bernardo Vergara (lone district, Baguio) and Faustino Dy Jr. (second district, Isabela) said the latest MBC pronouncements warning of stagflation only bolster suspicions that some people within the influential business group were actively participating in efforts to force the resignation of President Estrada.

Earlier, House leaders had called on the opposition to refrain from the destabilization efforts and instead allow the ongoing impeachment trial to proceed unmolested.

Vergara pointed out that Guillermo Luz is the older brother of journalist Kristina Luz, who allegedly broke the story in the international press that hostage negotiator Robert Aventajado and even the President had taken a cut from the ransom payments made by Libya and other countries to secure the release of foreign nationals seized by Muslim radical groups.

"Is this a case of all in the family? There seems to be a conspiracy to force the President’s ouster by all means, either fair or foul," said Vergara.