Metro Manila (CNN Philippines, May 11) — The possible occurrence of the El Niño phenomenon this year, which is expected to affect the agriculture sector, will “not deeply” hurt the Philippine economy, according to an official from the National Economic and Development Authority (NEDA).
“Contraction in agriculture caused by El Niño may not deeply impact the economy, although it may deeply impact households because more than 20% of our labor force is dependent on agriculture,” NEDA Secretary Arsenio Balisacan told a briefing on Thursday.“The social implications are more serious than the economic ones,” he added.Balisacan’s confidence is anchored on the fact that agriculture only accounts for “roughly 10% of our national income.”The NEDA chief said that if El Niño hits the Philippines, the production side would surely be affected, especially agriculture as it is “vulnerable to droughts.”He cited that during strong El Niño years, the sector suffered as rice production was cut by double digits, to as high as 20%.Aside from the agriculture industry, El Niño is also seen to impact electricity supply as some power plants are dependent on dams.But Balisacan is optimistic that the Philippines can weather this, saying the government is more equipped to address issues stemming from El Niño than in previous years.
