Diokno: Economy in the doldrums? ‘Look at the hard facts’

The numbers show that the economy is not sluggish, Budget Secretary Benjamin Diokno told reporters on Wednesday.

The Budget chief was asked to comment on President Duterte’s remarks that the economy is in the doldrums. Diokno was also asked to say what he thinks prompted the President to say that the economy isn’t doing well.

“You look at the facts, not impressions, not perceptions, but the hard facts, and you'll be convinced that’s not what it is,” Diokno said during a breakfast forum in Manila.

Fueled by government spending, the economy as measured by the gross domestic product grew by 6.8 percent in the first quarter of the year—the second fastest growing in Asia. 

Government spending rose by 13.6 percent during the same period from 0.1 percent the first three months of 2017.

“Public sector is the major driver of growth,” Diokno said.

During the opening of the 2018 National ICT Summit in Davao City on Tuesday, Duterte said in a speech that “the economy is in the doldrums” and lamented that projects in the provinces were barely progressing, unlike in Metro Manila.

“Now, the economy is in the doldrums actually. Now, interest rates are picking up, are getting high, so it destroys the existing … [gains],” the President said.

“Sabi ko sa Manila, they’re starting on the mega projects. Well, I suppose that they should be doing it on time. Pero sa mga provinces kasi, it’s a doldrums thing,” Duterte said.

Asked what prompted the President to make those remarks, Diokno said he didn’t have an idea.

“I really don’t know. I don’t want to comment ... You ask the Palace,” Diokno said.

Data released by the Department of Budget and Management showed infrastructure spending and other capital outlays reached P58.1 billion last month, up 26 percent from P46.2 billion a year earlier.

Infrastructure spending in the five months to May totaled P280.8 billion, up 42.4 percent from P197.2 billion in the same comparable period last year.

“Numbers don’t lie,” Diokno said, noting that the Department of Public Works and Highways should brief the President on the status of infrastructure projects. —VDS, GMA News