TACLOBAN CITY, Dec. 29 -- The
two major natural calamities that battered Eastern Visayas region this year may
slow down the 2017 regional economic growth after four years of reeling from
the impacts of super typhoon Yolanda.
The magnitude 6.5 earthquake that shook Leyte Island on June 6,
2017 and Tropical Storm Urduja that ravaged Biliran province mid-December are
considered by the National Economic Development Authority (NEDA) as major
setbacks in sustaining economic growth.
The ground-shaking has destroyed facilities of geothermal power
plants, triggering a week of total blackout in the region’s six provinces and
nearby islands and two weeks of rotational brownouts. It killed four people and
injured 100 others.
The earthquake may not be very damaging to lives and properties,
but its aftermath disrupted economic activities of major industries, said NEDA
Regional Director Bonifacio Uy.
“We are losing about 10 percent of our economic output if there’s
brownout for a day,” Uy said
Eastern Visayas is one of the seismically active areas in the
country because of the Philippine Fault and the Philippine Trench, which are
the main earthquake generators, according to the Philippine Institute of
Volcanology and Seismology.
“The region’s geographic location, facing the Pacific Ocean and
within the Pacific Ring of Fire, makes it prone to all known natural hazards,
aggravated by climate change effects,” the official added.
Oliver Cam, business sector representative to the Regional
Development Council said power interruptions in July caused weeks of shutdown
of two major industries – the Philippine Smelting and Refinery Corp. and
Philippine Phosphate Fertilizer Corp. both in Isabel, Leyte.
“The impact of power shutdown to the overall economy may be
significant since manufacturing subsector accounts 17 percent to the Gross
Regional Development Product,” Cam said.
The official recalled that the tremendous decline in the production
of basic metals after PASAR was razed by fire had pulled down the growth of the
industry sector to negative 18.5 percent, a sharp reversal from the 1.7 percent
growth in 2011.
In 2014, the industry sector value-added growth plunged to
negative 3.3 percent due to the production decline of two giant firms after
super typhoon Yolanda pummelled Leyte Island.
Consequently, Eastern Visayas was the only region in the country
that displayed contraction in its industrial value by about seven percent from
2011 to 2015.
STORM URDUJA
STORM URDUJA
Biliran, the most economically improved province in the region
with a poverty incidence of only 17 percent as of 2015, suffered the brunt of
slow moving Tropical Storm Urduja a week before Christmas.
Its heavy rains triggered widespread flooding and massive
landslide in one of the country’s smallest provinces with a population of only
171,612, less than the number of people in Tacloban City, the regional capital.
Urduja left a massive trail of destruction as landslide buried
dozens of houses, cut water and power supplies, and isolated Naval town, the
provincial capital as major bridges collapsed.
In the entire region, the calamity killed more than 50 people, the
Office of the Civil Defense reported.
Natural disasters inflict serious damage as it destroys tangible
assets such as buildings and equipment as well as human resource, hence,
reducing production capacity, said Uy.
“We’re still hopeful to achieve respectable if not a remarkable
growth since post-Yolanda reconstruction program is continuing. Huge funds have
been released this year to government agencies for economic improvement,” Uy
explained.
In storm-hit areas, government response is immediate, hence,
reducing risks of economic downfall, Uy added.
“The focus in the response phase is meeting the basic needs of the
people while the government is looking for more permanent and sustainable
solutions,” he said.
Citing the destruction of powerful post-“Yolanda” typhoons such as
“Ruby” (2014) in Eastern Samar and “Nona” (2015) in Northern Samar, Uy said
“Urduja’s” impact may not be reflected in the Gross Regional Domestic Product
(GRDP).
“The most affected sector by weather disturbances is the
agriculture sector, where majority of the region’s population depends on it.
However, its contribution to the total economy is lower than the manufacturing
subsector,” the NEDA regional chief said.
The year-on-year decline in agriculture and fishery output
resulted to decreasing share of the sector to the regional economy from 21.9
percent in 2011 to 16.7 percent in 2015.
Despite recent disasters, the region is still keeping the 5.2
percent to 7 percent economic growth and reduce poverty incidence by half to 22
percent within the term of President Rodrigo Duterte.
The challenge is on maintaining the record-high 12.4 percent
growth in the GRDP and the decade-low poverty incidence at 38.7 percent
attained last year.
Poverty incidence went down, but it is still the country’s third
highest next to Autonomous Region in Muslim Mindanao (53.7 percent) and Caraga
Administrative Region (39.1 percent).
The predominantly agriculture region is situated in the middle of
the Philippines and serves to link the islands of Luzon and Mindanao through
the national road and nautical highway that runs through it. (SQM/PNA)