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

  • Retired SC justice Lorenzo Relova; 98
  • Ligots fight 2nd forfeiture case
  • PH will be partly cloudy in afternoon, evening—Pagasa
  • Ex-COA chief nabbed for plunder
  • John Paul relics abound: Bloodied shirt, unwashed fork…
  • Sports

  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • NLEX roars to 7th D-League win
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • A graduation story
  • Global Nation

  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • HK victims to get P115M; traders raised money
  • Afghan hospital guard kills 3 US doctors, including Fil-Am pediatrician
  • Marketplace