Palace: RP economy stronger than ever

The government is confident the economy can withstand whatever impact the developments in Thailand will have on the region.

"We are confident that our economy will sustain its resiliency and strength through the remaining months of the year despite the vagaries in the world economy," Press Secretary Ignacio Bunye said.

He said Filipinos would continue to pray for peace and unity among Thais as "we anticipate the restoration of full democratic processes in the soonest possible time."

"President Arroyo has put in place a fiscal reform program that is driving the country’s blooming financial health and favorable market indicators as well as the bullish outlook of various financial institutions are backing up the Philippines," Bunye noted.

His views were echoed by Budget Secretary Rolando Andaya Jr. who cited the "firmly established" economic fundamentals under the Arroyo administration.

"We are strong enough for the consequences of the Thai coup. We just have to protect the economic gains that we have and all of these are irreversible," Andaya said in Davao City where he spoke before government budget officers.

The world community shuddered at the news of the ouster of Thai Prime Minister Thaksin Shinawatra but fears of its destructive effect on the regional economy appeared to have simmered down.

The International Monetary Fund said the impact of the military takeover in Thailand appeared to be already contained citing investors’ flexibility in adjusting to different situations in emerging Asian markets.

Dr. Emilio Antonio, a professor at the school of economics of the University of Asia and the Pacific (UA&P) in Pasig City, said in a press conference yesterday that the Thailand coup might prompt investors to "take a look again at the situation in the Philippines."

"Of course, we should not be happy about the misfortune of somebody else. But the reality is, that misfortune could be our fortune," said Antonio.

At Malacañang, Bunye said the country’s economic gains would benefit more Filipinos in the near future. "Soon enough we will see the payback to the poor through improved infrastructures, enhanced social services and better education for all - as we close the income gap," he said,

Bunye said he was heartened by reports that Thailand was gradually recovering from the effects of the ouster of Thaksin.

"We are relieved that the Thai nation is back to work and that the situation is easing," he said.

"Thailand is an ally of the Philippines in all spheres of political, economic and security cooperation; and we are strong partners in the fight against terror and poverty in the region," he added.

Andaya, for his part, said that "with or without what is happening in Thailand, our economic gains are strong enough to weather whatever would take place."

The continued appreciation of the peso, now almost touching the 49-to-$1 mark, is an indication of the country’s stronger economy. Andaya also cited the recovery of the stock market despite what he called destabilization moves in the past months. — With Edith Regalado, Sandy Araneta