Typhoon Yolanda to trim PHL economic growth

The growth of the Philippine economy will be curbed by Typhoon Yolanda, perhaps the strongest typhoon to make landfall in recorded history, after it devastated provinces in the country’s central regions.

Gross domestic product (GDP) growth for 2013 may be shaved by roughly 1 percent after Typhoon Yolanda barreled through Central Philippine region, said Finance Secretary Cesar Purisima on the sidelines of the Asia Pacific Real Estate Investment Summit Tuesday.

Central Philippines, which accounts for 12.5 percent of the country's GDP, could decline by as much as 10 percent for the year, he added.    

The Philippines' burgeoning economy increased by over 7 percent for four consecutive quarters, and registered the fastest growth in Southeast Asia at 7.6 percent in the first half.

The Aquino administration targets GDP to rise by 6 to 7 percent this year.

“The damage is quite substantial. And in the next months and years, we have to work together to rebuild it,” said Purisima.

The agriculture sector alone sustained damage of P3.7 billion from Typhoon Yolanda, latest data show.

Emilio Neri Jr., lead economist at Bank of the Philippine Islands, said the bank’s initial assessment on the impact of the typhoon is that GDP will be curbed in the coming months, before any reconstruction provides a boost.

“We really want to see more solid numbers from the ground to make a credible assessment,” he said in a telephone interview. For now, BPI is sticking with its 6.9 percent GDP growth forecast for the year.

The United Nations ranks the Philippines as third most vulnerable country to natural hazards, following the South Pacific island states of Vanuatu and Tonga.

In the past, natural disasters collectively cut as much as 1 percent to Philippine GDP, said Purisima.

Funds for relief and reconstruction

The government, meanwhile, is mobilizing funds for relief and reconstruction in typhoon-hit areas.

“From a fiscal standpoint, we do have fiscal space to spend for reconstruction,” said Purisima. “But the focus right now is that we have to make sure that relief goods, recovery efforts and provision of basic services will be delivered in affected areas.”

In a statement, the Budget Department said the balances of P6.4 billion President’s Social Fund, P16.6 billion in government savings, P1.08 billion in Quick Relief Funds are now being mobilized to facilitate aid.

“We wish to assure the public that we’re already moving funds to address the urgent need for disaster relief in all typhoon-stricken areas,” Budget Secretary Florencio Abad said in the statement.

Moreover, the government has P1.28 billion in Calamity Funds and another P824 million in Contingency Funds at its disposal.

Foreign aid

Humanitarian assistance and disaster relief aid has also been pouring in from the international  community at the wake of Typhoon Yolanda.

The European Union has earmarked €10 million (P586 million) in aid, its Development Commissioner Andris Piebalgs announced Tuesday.

Asian Development Bank (ADB) president Takehiko Nakao also said Monday that the multilateral lender “pledged... fullest support, both in the immediate aftermath of the disaster and in the subsequent rehabilitation and reconstruction efforts.”

Other countries that have made offers of assistance and aid include: Australia, Belgium, Canada, Denmark, Finland, Germany, Hungary, Indonesia, Israel, Japan, the Netherlands, New Zealand, Norway, Russia, Singapore, Spain, Sweden, Turkey, the United Arab Emirates, the United Kingdom, and the United States.

International organizations like UNICEF, Doctors Without Borders and Oxfam have also pledged their assistance. — BM, GMA News