Government of the Philippines recovers the country

This year the President of the Philippines Benigno Aquino plans to allocate $ 934 million to restore the provinces affected by the strong typhoon Haiyan last month, as Bloomberg informs.

The report states that the government will restore the infrastructure, buildings, agriculture, and create new jobs. Expenditures on construction of roads, buildings and bridges are to help supporting the economy, which in the last quarter showed the lowest rates of growth over the year. In November, the stock index of the Philippines was the lowest in the Asia-Pacific region. It is expected that the effects of the typhoon will restrain the growth of the Philippine’s economy in the first half of 2014.

Gandhi Kayadi, the economist of Singapore’s branch of DBS Group Holdings Ltd, said that the reconstruction of infrastructure takes about five years, and the total cost of the work exceeds the initial budget for a campaign to restore the country.

Haiyan hurricane swept over the Philippines on November 8, 2013. Due to the devastating effects of natural disasters the Philippines Stock Exchange index fell more than 3 %. National currency peso devalued by 1 % against the U.S. dollar. As a result of the typhoon 5.6 million people were killed, 4.1 million people were evacuated.

The World Bank plans to spend nearly $1 billion in aid Philippines. The Asian Development Bank will transfer grants totaling $23 million to assist victims of natural disasters, and loans of $500 million to restore infrastructure.