Typhoon could cut Philippines growth by 1%

Philippine Finance Minister Cesar Purisma said that the devastation caused by the Typhoon Haiyan could reduce growth by one percent next year.

Purisma also said it would take "many years" to rebuild the infrastructure damaged by the storm.

The official death toll from the typhoon stands at more than 2,300, but it is expected to rise much higher. Typhoon Haiyan is one of the most powerful storms ever recorded on land. It hit the coastal Philippine provinces of Leyte and Samar recently and swept through six central Philippine islands.

Purisma said that the worst affected region accounts for 12.5% of the Philippines economy and a steep slowdown there could slow the overall economy by one percent next year.

Earlier this year the International Monetary Fund forecast that the Philippines economy will grow by 6% in 2014. "Some of the infrastructure under normal circumstances requires a long time, for example transmission lines - you don't build transmission lines overnight," he said.

The Finance Minister said that the Philippines is among the three countries most vulnerable to natural disasters. "We are investing increasingly in infrastructure to protect the people. It will be 20% of next year's budget," he said.

BBC