Philippine News Agency
Slight impact on inflation, GDP seen due to Taal eruption
The Department of Finance (DoF) believes the inflationary impact of Taal Volcano's eruption will be minimal and manageable, with other regions able to compensate for damages in Batangas.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno also expects a limited impact on the domestic economy's growth and inflation.
Diokno noted that while NCR, Calabarzon, and Central Luzon are significant contributors to the country's expansion, only Batangas is most affected by the eruption.
He stated that the government would defer to the National Economic and Development Authority's (NEDA) assessment, which suggests the impact will not significantly affect the inflation and growth path.
The central bank chief also observed that the eruption's impact on agriculture has been limited given the overall size of the economy.
Diokno previously cautioned against premature speculation on numbers due to the unpredictable nature of volcanic eruptions.
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The National Economic and Development Authority (NEDA) estimates that the foregone income from the Taal Volcano eruption could reach as much as P4.314 billion, equivalent to 0.17% of the Calabarzon region's economic output in 2018.
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The Taal Volcano eruption's economic impact is estimated at P7.63 billion in Batangas province alone, a figure that Socioeconomic Planning Secretary Ernesto M. Pernia deems insignificant to affect the country's first-quarter GDP.
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The Department of Agriculture reported that the total damage to agriculture due to the Taal Volcano eruption has reached an estimated PHP3.06 billion, affecting 15,790 hectares and 1,923 animals in Batangas, Laguna, and Cavite.
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The eruption of Taal Volcano has caused an estimated P3.17 billion in agricultural damages, with the fisheries sector accounting for more than half of the total.
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The Bankers Association of the Philippines (BAP) suspended foreign exchange trading on January 13, 2020, due to the Taal Volcano eruption.
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