Economic impact of typhoons seen as ‘small, temporary’

NATURAL DISASTERS such as typhoons that bring flooding and landslides pose minimal and temporary risks to the Philippines’ economic growth, Capital Economics said.

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Senior Asia economist Gareth Leather cited the example of 2013’s Typhoon Haiyan, known in the Philippines as Yolanda, which killed 10,000 people but had a limited impact on economic growth.

“The floods that struck (this year) amid a corruption scandal centered on flood control projects, which could amplify public frustration and prompt a stronger government response,” Mr. Leather said in a note dated Dec. 3.

“Overall, however, while supply chains and manufacturing may face some disruption, the hit to activity is likely to be small and temporary,” he added.

Economy Secretary Arsenio M. Balisacan has said that the recent slowdown in household spending may be attributed to widespread cancellations of school, work, and travel activities due to the typhoons.