‘Labuyo, Maring won’t affect growth’

Cherrie Regalado

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This despite the P2.6-B farm sector damage reported by the Agriculture department

MANILA, Philippines – The combined effects of typhoon Labuyo and tropical storm Maring will not likely affect the country’s economic growth, said the Finance Department.

The weather disturbances caused P2.6-billion damage to the farm sector, the Department of Agriculture reported on August 21.

Labuyo and Maring battered Metro Manila and surrounding provinces in Luzon, forcing government offices and private establishments to close for days. Maring, which enhanced the southwest monsoon, brought heavy floods in many affected areas. Several local governments declared a state of calamity

In a statement, newly appointed DOF chief economist and DOF undersecretary Gil Beltran explained the P2.6-billion damage is only 0.09% of the projected 3rd-quarter economic output or gross domestic product (GDP).

“Losses from the 2 major typhoons that hit the country in the 3rd quarter can be recovered,” Beltran said.

He explained that farm sector damage has possibly been contained as DA launched a replanting program that will allow affected farmers to harvest rice and crops by November.

While estimate on the losses incurred by the manufacturing sector from Maring has yet to be released, Beltran said firms can still recover from the 2-day work suspension by adding work time to fill orders and meet deadlines.

Citing data from the DOF, Beltran noted that repairing and rebuilding damaged infrastructure will not increase the budget deficit as the country has savings.

The deficit stood at P51.29 billion in first half of the year, well below the P84.656 billion ceiling set by government.

Beltran said replanting, rebuilding and reconstruction will make up for the expected GDP losses. – Rappler.com

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