Recent Typhoons Unlikely To Dampen Economic Growth

Recent typhoons are unlikely to dampen overall economic growth, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said.

Photo Insert: Typhoon Egay left in its wake an estimated P3.53 billion in infrastructure damage.

“I do think that the impact on the overall national economy is not that serious at this point,” he said in a televised interview.

Typhoon Egay left an estimated P3.53 billion in infrastructure damage in its wake. Around 2.87 million people in 50 provinces were affected by the typhoon.

The Philippines is one of the countries most affected by water-related disasters, with an average of 20 typhoons that bring heavy flooding and cause billions of pesos in damage to infrastructure and agriculture every year.

Also, Balisacan said the recent typhoon did not “substantially” affect the agriculture sector.

“As I said, the events are still unfolding. The thing is this June, July, and August is not really the harvest season in many parts of the country for basic agricultural products, so I think that the damage is not that substantial,” he added.

Agricultural damage by Typhoon Egay reached P3.17 billion, according to the latest bulletin by the Department of Agriculture. “We do hope that the impact, especially in agriculture, is not as bad as compared to other episodes of monsoon rains in the past,” Balisacan added.

Rice was the most affected crop, with damage amounting to P1.34 billion and a volume loss of 38,917 metric tons (MT). This was followed by corn (P1.03 billion), high-value crops (P244.51 million), and livestock and poultry (P34.27 million).

“So far, in the case of basic commodities like rice, we have adequate stocks. I think a lot of the imports came in in the first half of the year and that I think allows us to have that buffer,” the NEDA secretary said.

Balisacan also noted that while rice prices may have increased due to supply chain disruptions globally, it is not a “major issue.”

He added: “If you know well enough (there’s) going to be a shortfall in the near term, you should be able to bring in those supplemental supplies, which obviously come from imports… our response (should) be more balanced, it’s not just about addressing farmers concerns for high prices, but you also have the concern of consumers wanting lower prices.”

To address possible supply issues, Agriculture Undersecretary Mercedita A. Sombilla said the government is now preparing the schedule for the importation of 1.3 million MT of rice and encouraged private traders to boost imports.

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