The International Monetary Fund underscored the risking risks posed by climate change in its latest country report on the Philippines, estimating that recurring damage from typhoons – the country’s most frequent natural disaster – currently amounts to about 0.2 to 0.3 percent of gross domestic product annually, a toll that could rise significantly without stronger action by local authorities to build resilience.
Climate shocks are already adding to downside risks to economic growth, the IMF said, compounding pressures from “lower than expected” reforms and persistent infrastructure gaps that have long discouraged larger inflows of job-generating foreign investments.
“Over the long term, the economic effects of climate shocks and trends are expected to increase, with climate models forecasting more intense typhoons and sea level rise,” the Washington-based fund said. “Public sector investment in adaptation is critical to raise macroeconomic resilience to climate shocks and protect the vulnerable.”
The IMF findings come amid a deepening corruption scandal involving anomalous flood mitigation projects, exposing governance weaknesses and underscoring how graft has hampered climate adaptation efforts in a country widely regarded as among the most vulnerable to climate change risks.
The IMF also estimated that climate shocks – operating through supply, demand, and expectation channels – could increase inflation by up to 0.6 percentage point in a typical year. That disproportionately impacts the agriculture sector, pushing up food prices.
It highlighted the critical role of a “coordinated” response among state agencies during such situations.
As among the most vulnerable countries on the planet when it comes to climate change, particularly from typhoons that are growing more powerful with each passing season, the Philippines should be among the most prepared for climate shocks. However, our government seems to have been banking on the famed Filipino resiliency, when it could be building it into our communities through infrastructure and programs that could leverage our resilient nature
It is still not too late to start building tangible resiliency into our communities.*
