Taal eruption may cost P4.3B in foregone income

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.

The agriculture and fishery sector is projected to account for almost three-quarters, or P3.167 billion, of this unrealized income.

Foregone income from the service sector could hit P789.1 million, while that of industries could reach P357.3 million.

These estimates translate to 0.08% and 0.02% of the region's 2018 gross value added (GVA) in services and industries, respectively.

The NEDA previously stated that the economic losses are insignificant and will not significantly impact the country's Gross Domestic Product (GDP), unless a violent eruption occurs.

The nation's top seismologist warned of a sudden explosive eruption as gas continues to build up beneath Taal Volcano.

The Taal unrest is expected to have a minimal effect on the Philippines' projected economic growth of 6.5 percent to 7.5 percent for the year.