- POSTED: 17 Sep 2013 20:17
This graph is an experimental feature that tracks number of views over time.
The Philippine government has said that the on-going conflict in Zamboanga City in the southern island of Mindanao will not affect the economy.
MANILA: The Philippine government has said that the on-going conflict in the southern island of Mindanao will not affect the economy.
The assurance was given by the country's financial managers to businessmen and investors during a mid-year economic briefing.
The Philippines' economic managers downplayed the impact of the ongoing conflict in Zamboanga City on the country's economy, emphasising that the country's macroeconomic fundamentals are strong enough to weather this current crisis in the southern Philippines.
The Philippine government stressed that the current fighting between the Moro National Liberation Front rebels and government forces in Zamboanga City will only have a minimal economic impact, given the relatively small contribution of the region to the country's gross domestic product (GDP).
The whole of Mindanao accounts for just about 20 per cent of the country's GDP.
Finance Secretary Cesar Purisima said: “Mindanao is not a small island. It is a big island; the area that has some issues is on the Western side, and it is a small portion of Mindanao.
“Nevertheless, this has to be resolved. We are putting a lot of resources to achieve lasting peace in Mindanao for it to achieve its full potential."
Authorities also believe the current crisis will have a limited impact on the country's efforts in transforming Mindanao's image from a war-torn area to an investment and tourism destination.
Tourism Secretary Ramon Jimenez Jr said: “The country's brand image is stronger now. There are no immediate implications for tourism. As of this morning, (there are) no cancellation of any bookings.
“So that is very clear evidence that the country's image is more buoyant and more resilient now than before, because we now have an image that is shaped not just by the news but by active promotions both on the economic and tourism front."
However, analysts have warned that the current conflict in Zamboanga City may lead to a deterioration in confidence in the Philippines, with investors likely to take a second look at the country due to renewed peace and order issues in the southern Philippines.