RP economy on the mend: Govt

RP economy on the mend: Govt

MANILA: The Philippine economy is on its way to recovery as the political crisis swirling around President Gloria Arroyo is bottoming out, her spokesman Ignacio Bunye said on Friday.

"There is no way (to go) but up. Political uncertainties have started to bottom out," Bunye said, expressing "no doubt" that the Philippines would post the 5.3 percent economic growth targeted for this year.

He was referring to the five-month old campaign by the political opposition to oust Arroyo on charges that she cheated to win the May, 2004, elections.

Arroyo's allies in Congress have quashed an impeachment complaint against her over the cheating charges and the president has stood firm in refusing to step down despite almost daily street protests.

Bunye said that despite the political squabbles, which have seen top economic cabinet members resign and turn against Arroyo, Manila has remained focused on "our goal of more investments, more jobs and more livelihood opportunities."

He cited the strong recovery of the Philippine peso and stock market this week after the government implemented a long-delayed value-added tax (VAT) intended to address chronic budget deficit problems. -- AFP