Navigating slowing growth amid climate risks

When we visited typhoonravaged coastal barangays last month, there were signs of struggle everywhere.

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Fishing boats leaned to one side, roofs patched hastily with tarpaulin, and some community halls - used for schooling, meetings, and emergency shelters - still bore the scars of recent typhoons. These were not just images of recovery, but snapshots of a broader story unfolding across the country.

The Philippine economy, as measured by gross domestic product (GDP) growth, slowed to four percent in the third quarter - the slowest quarterly expansion in 4.5 years. Analysts pointed to weak infrastructure spending amid ongoing investigations, typhoon damage, and sluggish global demand as key factors. But beneath the numbers lies a more pressing reality: climate change is reshaping the economic landscape, threatening the livelihoods of the most vulnerable, and testing the resilience of Filipino communities.

This is where the story of growth, inclusion, and resilience intertwines. Slowing growth is not just a macroeconomic headline; it is a lived experience for families who rely on small-scale farming, fishing, and microenterprises. When a storm destroys a roof, erodes a coastline, or floods a rice field, the immediate cost is tangible: lost income, damaged assets, and mounting debt. The long-term cost is equally real: hesitation among investors, reduced productivity, and rising inequality.

Government: Steering policy and resilience financing

At the national level, the Department of Finance and the Bangko Sentral ng Pilipinas have been developing climate and disaster risk finance and insurance (CDRFI) strategies. Initiatives for green infrastructure investments are also slowly taking shape. These must be pursued, especially since during our field visits, community leaders and local officials often spoke of the urgent need for prearranged financing for disasters and climate-resilient infrastructure.