The Philippines could sell more debt next year to help pay for reconstruction following Typhoon Haiyan, forecasts Juzhong Zhuang, deputy chief economist at the Asian Development Bank.
Although the disaster, which has so far claimed more than 3,000 lives, is not expected to seriously damage the country’s economic growth, tax revenue as a proportion of GDP is relatively low in the Philippines, limiting the government’s wiggle room, he told FinanceAsia.
“The fiscal position has improved in recent years and the government may have to borrow,” Zhuang said. “That is one of the options.”
Debt as a percentage of GDP is about...
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