The current economic slowdown is already being felt due to delays in government spending caused by corruption issues, Economist and Professor Emmanuel "Noel" Leyco said on Saturday, September 27.
In an exclusive interview on DZRH's Special on Saturday, Leyco expressed concerns over the peso-dollar exchange rate potentially reaching 59 to 60 pesos per dollar, urging that it should not surpass this level.
He also called for inflation to remain below 2.5 percent, and emphasized the need to reduce unemployment and underemployment amid ongoing national challenges.
“Ngayon pa lang po nararamdaman na natin yan. Halimbawa po, ang government spending, dahil po sa nangyayaring katiwalian, bumagal po yan,” He also said, stating the public expenditure as an example.
Leyco explained that government spending has slowed down due to ongoing corruption, with some public infrastructure projects delayed or halted. These disruptions are expected to have a negative impact on the performance of the country’s Gross Domestic Product (GDP).
Leyco also added that the slowdown will also affect consumer spending and investments, stating reports that indicate the real estate sector, particularly the high-end market, is already experiencing a downturn as buyers become more cautious.
“Mukhang nagpipigil ngayon ang mga mamimili na pumasok doon sa mga investment na ‘yon at baka mapagkamalan silang mga kontratista, kung kaya po nagpipigil sila,” he said, pointing to growing public hesitation amid corruption concerns.
Furthermore, Leyco warned that the current situation could have serious effects on the country’s economy, as reduced public spending, largely due to corruption, may slow down the Philippines' GDP growth in the coming months.
He acknowledged that he could be wrong in his assessment, but stressed that if government spending and investments continue to be delayed, the impact on economic performance will be significant.
He further explained that the GDP rate dropped to 5.5% to 5.6% which already has an effect. Moreover, the ongoing corruption issues could push it even lower, posing a threat that if the growth rate falls to 5.4% or below, it may trigger public concern and confusion, saying such a decline would be unacceptable to many Filipinos.
