Climate Change Impacts Can Cut PH GDP

According to the World Bank, climate change’s impact is predicted to cut the gross domestic product (GDP) of the Philippines by as high as 13.6% by 2040 if the private sector and the government fail to act.

In the World Bank’s briefing of the Philippines Country Climate Development Report, Lead Economist Souleymane Coulibaly stated that “Damages from climate change are a threat to the Philippine economy. It is likely to reduce GDP substantially, but the range of possible outcomes is wide,”

Mr. Coulibaly also mentioned that the estimates of the World Bank depicted the Philippines to possibly see an average loss of 3.2% in GDP by 2030 and as high as 5.7% by 2040.

“However, the impact could be much worse reaching 13.6% in 2040 if no actions are taken…with the worst effects in capital-intensive industries,” says Mr. Coulibaly.

While World Bank Country Director for the Philippines Ndiame Diop mentions that the Philippines is “uniquely vulnerable” to the effects of climate change.

“In 2022, the Philippines ranked number one among the countries most affected by extreme weather events…climate change is often called a silent crisis, but in the Philippines, it is not silent. It’s an imposing problem and a real threat,” he adds.

“Temperatures in the Philippines will continue to rise by the end of the 21^st century. Rainfall patterns will change and intensify, and extreme weather will become more frequent. Without action, climate change will impose substantial economic and human costs, affecting the poorest households the most,” says Mr. Diop.

Source: Business World