Philippines says typhoon ‘Yolanda’ to cap economic growth at 7.0%

Economic Planning Secretary Arsenio Balisacan. INQUIRER FILE PHOTO

MANILA, Philippines – The Philippine economy is expected to grow about seven percent in 2013, as expansion in October-December is stunted by this month’s devastating typhoon, the government said Thursday.

Economic Planning Secretary Arsenio Balisacan said super typhoon “Yolanda” (international name Haiyan) would cut up to 0.8 percentage points from gross domestic product growth in the last quarter of the year.

His comments came as official data showed the economy, one of Asia’s best performing, expanded 7.0 percent in the three months to the end of September.

That compares with a 7.1 percent median forecast by economists polled by the Wall Street Journal.

“We are doing very well. Even with the deceleration of growth because of ‘Yolanda,’ (full-year) growth of 7.0 percent is ‘doable’ assuming no more disasters,” Balisacan told a news conference.

This, he added, would still make the Philippines one of the world’s fastest-growing economies, behind China.

Before “Yolanda” struck, officials had been confident the country would surpass the government’s full-year growth target of 6.0-7.0 percent because of the rapid expansion in the first half.

Damage from the November 8 typhoon that officials said left more than 7,000 people dead or missing will cut GDP growth in October-December period by 0.3-0.8 percentage points, Balisacan said.

Growth for the final three months is now expected at around 7.0 percent.

The economy grew 7.4 percent in the first nine months of the year, up from 6.7 percent in the same period last year, said Jose Albert, secretary-general of the National Statistical Coordination Board, told the news conference.

A property boom and the services sector were the main drivers of the economic expansion, he said.