Typhoon Haiyan Disrupts Economy
Cesar Purisma, Philippine Finance Minister, has revealed that Typhoon Haiyan will disrupt the economy and could potentially reduce growth by one percentage point over the next year. He went on to say that infrastructure will take many years to rebuild and repair, after what was one of the worst storms in recorded history.
Currently the death toll stands at 2,300. But this is expected to rise a lot higher, the lack of fresh water and other supplies will begin to take its impact on those who have been worst affected. The country experiences such storms every year, with damages reaching in the millions. But Typhoon Haiyan has been brutal, tearing up the eastern parts of the Philippines.
Poverty for poorest in the Philippines a certainty
The Finance Minister also said the regions Typhoon Haiyan hit the most severely account for almost 13% of the nations economy. This is really bad news for the Philippines, as it was predicted by the International Monetary Fund that the economy would be growing by 6% in 2014. However, this is obviously no longer expected.
Kinetic Analysis Corp, a disaster-modelling firm, have estimated that the cost of the typhoon is in the £8bn – £10bn region. There is no good news that can be provided to the people of the Philippines, and the news for them only goes further and further south. 40% of the country’s population already survive on a small income, approximately £1.25 a day. It will be these people who will be pushed further into poverty.
Currently charities in the UK have raised £13m in the first 24 hours. The UK Government have already said they will give £10m, and are prepared to add another £5m. £38m has been pledged by Australia, Japan, South Korea, US, Indonesia and the UAE.