Typhoon Pablo (international name Bopha) entered the Philippine Area of Responsibility last December 2, 2012. It was forecast to be the most powerful storm for the year 2012. Mindanao and Visayas, as well as some areas in Southers Tagalog and Metro Manila were affected according to the Philippine Atmospheric, Geophysical, Astronomical Services Administration (PAGASA). This typhoon has taken away hundreds of lives, sources of living, and infrastructures.
How did Typhoon Pablo affected the Philippines’ GDP? What are some economic views on this event?
There has been an automatic 'price freeze' has taken effect in Davao Oriental, Compostela Valley and Surigao del Sur, after the provinces were declared under a state of calamity due to typhoon Pablo. The 60-day price control, covers basic goods such as rice, bread, salt, sugar, cooking oil, milk, etc., means retailers who implement price adjustments may be slapped with a fine of as much as P2 million, and be imprisoned for up to 15 years.
“Damage by Pablo would represent 0.3 percent
of GDP (Gross Domestic Product), roughly about P32 billion”, says
Socioeconomic Planning Secretary and Secretary General of National Economic and
Development Authority (NEDA) Arsenio Balisacan to reporters in an economic
briefing in Pasig City. He also added
that “This doesn't mean that all that P32 billion will
be charged this quarter – some of this will be felt in the first quarter”. Meaning, Typhoon Pablo “is not really
significant” to the economy.
Even
though recovery from the natural disaster may take years (according to Benito
Ramos, Head of National Disaster Risk Reduction and Management Council), reconstruction
in typhoon-stricken areas will in fact, add to growth in the first half as “capital
assets build-up and enhance the local economy”. The Department of Agriculture said the banana and coconut industries
incurred the biggest damage in the agriculture sector.
(http://www.gmanetwork.com/news/story/286909/economy/business/typhoon-pablo-s-economic-impact-not-much-at-0-3-neda-s-balisacan , http://www.interaksyon.com/business/50680/economic-impact-of-typhoon-pablo-estimated-at-p32-billion---neda , http://www.interaksyon.com/business/50754/price-spike-from-typhoon-pablo-unlikely---metrobank )
To
conclude, the recent Typhoon Pablo which had a cost damage of over
P14 billion was something we Filipino people must face and survive
of. The government and economists have said that this had not affected out
economy much. Therefore, this tragic event should not weaken the Filipinos’
goal of having a more productive economy and a higher GDP.
Note: I paraphrased the paragraphs from the news articles linked above. The last paragraph is my conclusion. Thank you for reading.
- Czexyl R. Tenebro
Note: I paraphrased the paragraphs from the news articles linked above. The last paragraph is my conclusion. Thank you for reading.
- Czexyl R. Tenebro
