Effects of 'Ondoy' may cut Philippine growth

Effects of storm 'Ondoy' may likely reduce Philippine economic growth, authorities said on Tuesday, three days after the disturbance brought record amounts of rainfall, submerged entire villages, and destroyed farms. Preliminary estimates indicate that the "recent could reduce the real GDP [gross domestic product] growth rate in full year 2009 by at least 0.043 percentage points," said Augusto B. Santos, acting Socioeconomic Planning Secretary, during a Cabinet meeting. Santos, also acting director general of the National Economic and Development Authority (NEDA), cited latest available figures from the National Disaster Coordinating Council (NDCC), the Office of Civil Defense, and NEDA regional units. The situation may prompt the Development Budget Coordinating Council (DBCC) -- which sets the country's growth goals -- to cut its expectations. Instead of projecting an economic expansion of anywhere from 0.8 -1.8 percent for 2009, the agency may reduce it to 0.7 to 1.7 percent. But at the same time, remittances from overseas Filipino workers (OFWs) "have been stronger than forecast," Santos said in a statement. He suggested that “it is best not to move for now the target of 0.8 to 1.8 percent for 2009." Remittances help boost consumer spending, which comprise 70 percent of the economy. In his presentation, Santos said Typhoon Ondoy (international name Ketsana) damaged P108.9 million worth of infrastructure and crops and affected about 90,000 families as it brought a 40-year record-breaking, 41.6-centimeters total rainfall in a single day (the previous record was 33.4 centimeters in July 1967). The Department of Agriculture (DA) said that crop losses have reached P3.2 billion in an updated report. The government is undertaking continuous search and rescue operations in affected areas and has ordered for temporary 24-hour operations of and a flat rate of P10 for LRT and MRT fares, as well as temporary price controls on basic commodities such as canned goods, candles, batteries, etc. - GMANews.TV