Quantcast
Latest Stories

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

By

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.

“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.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: armed conflict , Business , economic impact , Mindanao , mnlf , zamboanga city

  • sanjuan683

    Three days palang naman kaya minimal pa, huag ka mainip tatagal pa yan ng ilan buwan.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Intrigues mar signing of Bangsamoro draft law
  • Singson apologizes for delay in Edsa road repairs
  • Congressmen seek end to small-town lottery operations
  • 16-year-old survives in wheel well of US flight
  • MMDA to blame for delay of Edsa reblocking – DPWH exec
  • Sports

  • Reigning champs Miami open playoffs with win
  • Spurs subdue Mavericks in playoff opener
  • Wawrinka beats Federer to win Monte Carlo Masters
  • Ageless Hopkins pitches 50-50 Mayweather deal
  • Goodbye MGM, Las Vegas for Pacquiao?
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Solenn in shorts
  • Business

  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Golden Week
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Filipinos in Middle East urged not to panic amid MERS-CoV scare
  • Obama on mission to quiet Asia skeptics
  • Search for Etihad passengers launched
  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • Marketplace