IMF: ₱750-B climate hit threatens PH

The Philippines faces an escalating economic threat from climate change that could wipe out as much as two percent of its annual output if the government fails to implement aggressive adaptation strategies, according to the International Monetary Fund (IMF).

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In a staff report released following its latest mission, the Washington-based lender warned that the long-term impact of intensifying typhoons and rising sea levels poses a significant risk to the archipelago’s fiscal stability.

Without intentional intervention, IMF said these climate-driven losses are projected to far exceed the current annual average of 0.3 percent of gross domestic product.

Based on official government macroeconomic targets through 2028, a two percent hit to the economy would result in staggering financial damage. Given the 2024 nominal GDP estimate of ₱26.45 trillion, such a loss would have totaled ₱528.9 billion last year.