Press Release
May 29, 2009

Press Statement of Senator Loren Legarda on fears of recession

The fears of the Philippines going into recession - or a period of negative economic growth - are not without basis. The fact that the economy grew by just 0.4 percent in the first quarter of the year points to this very distinct possibility.

The high unemployment rate contributes to low consumer confidence and demand, which in turn causes contraction in production and, consequently, more layoffs. The government must do more to attract investments that generate much-needed jobs as we need to jumpstart our economy.

The peso lost nine centavos to the dollar while share prices plunged 0.08 percent lower in reaction to news of the 0.4 percent growth rate posted in the first three months. Nonetheless, we Filipinos have the capacity, the skills and the resources to rebound from this temporary setback. We just have to work together as one people.

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