Economic Impact of Typhoons on the Philippines

The Philippine economy is projected to grow at a slightly slower pace in 2024 due to a series of typhoons that hit the country, according to the World Bank. The Gross Domestic Product (GDP) is now expected to expand by 5.9% in 2024, down from the earlier forecast of 6.0%. This adjustment comes after adverse weather conditions in the third quarter disrupted government spending and dampened farm output, leading to a GDP growth of 5.2% in the July to September period, the weakest in over a year.

Despite the immediate setback, the World Bank remains optimistic about the Philippines' economic future. GDP growth is expected to accelerate to 6.1% in 2025 and 6.0% in 2026, aligning with the government's reduced target of 6.0% to 6.5% for 2024 and 6.0% to 8.0% for the following two years.

Vulnerability to Extreme Weather and Future Prospects

The country's vulnerability to extreme weather events such as typhoons and heavy monsoon rains continues to pose a challenge. However, the World Bank highlights the potential for a "demographic dividend" to drive future economic growth. With a population of over 110 million and a median age of 25.3 years, the Philippines is one of the few nations in the region that can achieve prosperity before its population significantly ages.

The World Bank also emphasizes the importance of containing inflation to allow the central bank to maintain a supportive monetary policy, which is crucial for sustaining business activity and overall economic growth.