The Philippines, which ranks the fourth-highest risk country in Maplecroft’s "Absolute Economic Exposure to Natural Hazards Risk Index," faces a significant risk of economic losses following the occurrence of severe natural hazard events.
Super Typhoon Haiyan, potentially the strongest storm ever to make landfall, hit the Philippines on 8th November 2013, destroying infrastructure and agricultural crops, and causing massive loss of life across the central provinces.
Initial estimates put the total impact of Haiyan at up to US$14 billion, and the typhoon will likely become the most significant natural hazard event to hit the country with a drop in GDP in the worst affected areas predicted next year.
Business continuity challenges will arise for multiple sectors of commerce due to the destruction of key communications and logistics infrastructure, which in turn will hamper recovery efforts in the worst affected areas and extend repair timescales.
The strategic and operational consequences of such events present a significant challenge for companies with interests in the country, and building resilience is a key aspect of addressing the natural hazard risks present in the Philippines.