Economic activity is stagnating in the provinces and no less than President Duterte himself is worried that the rising prices of goods could prolong the period of gloom.
“Now, the economy is in the doldrums, actually [it is] now,” Mr. Duterte said on Friday night, less than a week after the Bangko Sentral ng Pilipinas (BSP) raised interest rates for the second time since September last year to counter inflation.
The President admitted that the situation in the provinces had become a problem for his administration because projects were barely progressing.
“Interest rates are picking up, are getting high so it destroys the existing [economic gains] … You raise your [interest rate], our [peso value] goes down, theoretically,” Duterte said in a speech at the National Information and Communications 2018 Summit at SMX Convention Center here.
“I said in Manila, they’re starting the megaprojects well. I supposed that they would be doing it on time. But in the provinces, it’s a doldrums thing,” he added.
