The cases of Estrada are in the hands of the Sandiganbayan and the Supreme Court. This can do or undo GMA, the same test which her immediate predecessor so disastrously failed. The elation over the fall of the incompetent President and the national election which immediately followed may have diverted attention from the economy. However, latest reports indicate our economy is still sick. Investors did not back with new investments their expression of confidence in the new government following GMA's take-over on January 20.
Investors are cautious.
Lack of new capital has a serious repercussion. Unemployment which is now about 16 percent can worsen. This should explain the Social Weather Station survey finding 16.1 percent of the Filipinos are going hungry and poverty has risen to 59 percent in the first three months of 2001 from 56 percent in December 2000. This is a more optimistic forecast compared to the 3.3 percent of the International Monetary Fund or to the 2 percent Britain's HSBC bank or to the 1.7 percent of U.S. based investment house Goldman Sachs. Second, it will reduce revenue collections and make it more difficult for the government to control budget deficit.