Biz leaders keep positive outlook amid calamities

CEBU, Philippines - While it is forecasted that the Philippine economy will be slightly affected by the series of calamities that hit the country, Cebu business leaders remain bullish that the country's economy could still manage to alleviate the upshot of the tragedies.

Cebu Chamber of Commerce and Industry President Lito Maderazo said that with the recent calamities that struck the country, it is anticipated that the Philippine economy will be affected particularly the entire Visayas region.

However, he said that the expected deceleration will be temporary given the reconstruction of infrastructure, houses and other establishments with funds coming from government coffers and international donor organizations.

He added that the increased government spending could trigger the economic growth. Among the industries that were severely affected in Visayas include agriculture, fisheries and tourism.

Yet, Maderazo remained optimistic that the aftermath of the disasters has provided the country with the opportunity to upgrade the productivity of farmlands and integrate better technology for the fishing industry to enhance the sustainability of the sectors.

"Since we have to start from all over after everything has been destroyed especially in Region 8, might as well change the old practices we were doing in the past. This can provide impetus for better economic impact in the medium to long term, not necessarily next year," he stated.

CCCI also encouraged international donors to teach the Philippine industry players with the new variety of livelihood strategies that are practiced by First World and other developing countries.

Mandaue Chamber of Commerce and Industry President Philip Tan said that it is possible that the Philippines shall fully recover and retain its outstanding economic performance by the end of 2014.

"There would be a slight dent in this last quarter but with the reconstruction spending both by the government and private sector, next year's Gross Domestic Product (GDP) would not be far from the current year," he said in a text message.

Filipino-Cebuano Business Club President Rey Calooy also said that the country could expect a decline of the national GDP in the last quarter of the year since the Visayas region that was badly hit by the storm accounts a significant contribution to the Philippine economy.

He, however, said that it could be possibly mitigated through the increased public spending now that the Christmas season has officially started.

In his Facebook account, he listed down the potential business opportunities one could venture into after the series of calamities. He said that there is a high demand for house rentals, generators, housing and construction supplies, trucking, forwarding, budget hotels, consumer goods, medical supplies and tour guide services to foreign aid workers.

Calooy expressed hope that the Eastern Visayas which is considered to be the worst-hit region during super typhoon Yolanda would get back on its feet soon.

Earlier, he said that Leyte and Cebu traders who were badly affected by the calamity appeal to the government for assistance in the rehabilitation of their businesses and in the payment of their loans to financial institutions.

The National Statistical Coordination Board recently reported that the Philippine economy grew by 7 percent in the third quarter of the year, slower than the revised 7.6-percent growth registered in the previous quarter.

Such performance leads the country's economic growth to 7.4 percent for the first nine months of the year which is higher than the 6.7 percent posted in the same period of last year.

Nomura Securities Global Economic Outlook believed that the recent disaster will not alter the strong fundamentals of the Philippine economy but lowered its GDP growth forecast in the fourth quarter from 7.3 percent to 7.1 percent taking into account the impact of the typhoon to the country.  /JMD (FREEMAN)