Typhoons slow Philippines 2006 economy.

The Philippines experienced a devastating typhoon season in 2006 with four huge storms causing numerous deaths, and destruction of crops. According to a CNN News service bulletin on December 1, 2006, Typhoon Durian washed "car-sized" glowing red hot boulders from a volcano into some villages.

This series of environmental shocks will mean that the Philippines will not meet its GDP growth target for 2006, according to a January 23, 2006 Associated Press (AP) report. The AP said the government's target range for 2006 GDP was 5.5 percent to 6.1 percent. Likely results will fall into the 5.3 percent to 5.6 percent range.

The AP quoted a government official as saying that the economy would recover strongly in 2007 with GDP growth falling into the 6.1 percent to 6.7 percent range. The International Monetary Fund is much less optimistic estimating that Philippines GDP growth will be 5.4 percent in 2007, up from 5.0 percent in 2006.

The AP's government source said, "Consumption will continue to be the main driver. Aside from the money from overseas Filipino workers, we expect low interest rates to spur consumer credit." Government spending was also cited as an impetus for growth.

Inflation has grown ominously in the Philippines, according to the IMF, but will grow less in 2007. Growth in the rate of 2007 inflation is estimated at 5.0 percent.