Tuesday, October 17, 2017
Close  
business /

Economic impact of Zamboanga issue ‘minimal’, says central bank exec

business /
  • share this

Economic impact of Zamboanga issue ‘minimal’, says central bank exec

/ 03:40 PM September 10, 2013

BSP Deputy Governor Diwa Guinigundo. INQUIRER FILE PHOTO

MANILA, Philippines—The direct economic impact of fresh clashes in Zamboanga City will likely be minimal given the historically turbulent area’s relatively small contribution to the country’s gross domestic product, a senior government official said Tuesday.

However, the current conflict in Zamboanga may lead to a deterioration in confidence in the Philippines, with investors likely taking a second look at the country due to renewed peace-and-order issues.

“If this is just a short-term, fleeting event, then there won’t be any impact, especially since it’s happening down south. Zamboanga is not a major trading port,” Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo said.

ADVERTISEMENT

“But it will always be a sore thumb, especially if it lasts long,” he added. “Imagine if we didn’t have these issues in Mindanao. That’s a very rich area.”

He said despite Mindanao’s riches, owing to the resources it has to offer that could benefit the agriculture and mining sectors, the area’s potential has never been maximized due to its troubled history.

For instance, the Tampakan copper-gold mine south of General Santos in Mindanao is considered one of the largest undeveloped mines of its kind in Southeast Asia.

Zamboanga, in particular, used to be a major port for the entry of imported second-hand goods, Guinigundo pointed out.

At the end of last year, the whole of Mindanao contributed just 15 – 16 percent to the gross domestic product. This contrasts with Metro Manila’s 36-percent contribution to gross domestic product, based on latest government data.

Another issue that could undermine the international community’s confidence in the Philippine economy was the corruption involving the Priority Development Assistance Fund (PDAF) or “pork barrel”

“The issue is about governance,” Guinigundo said, adding that this had the potential to erode the market’s confidence in the economy and the Aquino administration, which ran on a platform to clean up the government.

ADVERTISEMENT

Inquirer calls for support for the victims in Marawi City

Responding to appeals for help, the Philippine Daily Inquirer is extending its relief to victims of the attacks in Marawi City

Cash donations may be deposited in the Inquirer Foundation Corp. Banco De Oro (BDO) Current Account No: 007960018860.

Inquiries may be addressed to Inquirer’s Corporate Affairs office through Connie Kalagayan at 897-4426, ckalagayan@inquirer.com.ph and Bianca Kasilag-Macahilig at 897-8808 local 352, bkasilag@inquirer.com.ph.

For donation from overseas:

Inquirer Foundation Corp account:

Inquirer Foundation Corp. Banco De Oro (BDO) Current Account No: 007960018860

Swift Code: BNORPHMM

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: armed conflict, Business, economic impact, Mindanao, mnlf, zamboanga city
For feedback, complaints, or inquiries, contact us.




© Copyright 1997-2016 INQUIRER.net | All Rights Reserved