‘Buoyant’ RP economy can bounce back — Arroyo

President Arroyo expressed confidence yesterday the economy remains "buoyant" enough to absorb the shocks generated by the raging political crisis in the country due to the impeachment controversy between Congress and the Supreme Court.

"The economy is buoyant and I am confident the impeachment impasse will be resolved soon," she said. "As shown in the past, our democratic system has a tendency to be rocked by controversy but it has shown the capacity for bouncing back and moving forward."

The President said the economy "has been beset by transient doubts but has shown strong, consistent resiliency," adding "there is confidence in our stability" since investments "continue to pour in."

The business community earlier raised apprehensions about the impact of a possible constitutional crisis as a result of the stalled negotiations between leaders of Congress and Supreme Court justices on the impeachment complaint filed against Chief Justice Hilario Davide Jr.

The President stepped in to facilitate the resolution of the controversy, which has rocked the country and spawned renewed jitters that have pulled down the value of the peso against the US dollar.

Mrs. Arroyo, an economist, said the weakness of the peso was just a temporary phenomenon as the market reacts to jitters caused by the latest political events in the country, particularly the bid to impeach Davide.

While the peso skidded down to a new low at the opening of trading last Monday at P55.50 to US$1, she noted the peso remains fundamentally strong enough to absorb these shocks.

However, she warned that the escalation of this controversy may throw the country into a constitutional crisis.

"The nation’s peace of mind is disturbed by political developments that are telegraphing signals of instability," the Chief Executive said.

She appealed to all concerned to help erase perceptions of political instability.

"I appeal for prudence and constructive action among our leaders," the President said. "We have to end this impeachment controversy at once but we want to make sure this will end well in the most proper, principled and righteous way."

Over the government-run Radyo ng Bayan yesterday, Presidential Spokesman Ignacio Bunye blamed the conflict between the legislature and judiciary over the impeachment bid against Davide for the business community’s perception of political instability in the government.

"The major cause of the peso’s decline is the perceived impending constitutional crisis, if no solution will be found on the impeachment case against the Chief Justice," he said.

Bunye said he is "confident the peso will go back to its normal level once the impeachment case is resolved."

The President and members of her Cabinet discussed the impact of the impeachment controversy during a Cabinet meeting held last Monday at the Land Transportation Office along East Avenue, Quezon City.