ADB ready to help Philippines deal with El Niño

MANILA, Philippines — The Asian Development Bank (ADB) is ready to provide assistance to the Philippines in dealing with the El Niño’s effects.

“We have existing standby emergency assistance facilities that can be drawn down by the government if needed, if they declare a state of an emergency,” ADB Philippines country director Andrew Jeffries told reporters.

In particular, the ADB can provide support through the $500 million loan facility under the Second Disaster Resilience Improvement Project.

The project aims to help the country reduce and manage disaster risk through quick access to financing in case of disasters due to natural hazards or health emergencies.

“Some of it has been drawn in the past, but it’s replenishable,” Jeffries said.

As of now, he said that the Philippine government has not indicated the need for such assistance.

“But it’s there. The whole purpose of it is short-term, immediate funding after disasters,” he said.

He said that the facility is available even with ADB’s standard support for the country’s agricultural sector focused on boosting long-term resilience and productivity.

“El Niño is really much of a near-term risk. It’s this fourth quarter and the first quarter of next year,” he said.

Earlier, the ADB flagged the El Niño dry weather episode as a major downside risk to its growth outlook for the Philippines.

The ADB expects the Philippine economy to grow by 3.3 percent this year, before rising by 5.1 percent in 2027.

These forecasts are slower than the multilateral lender’s previous growth projection of 3.8 percent for 2026 and 5.3 percent in 2027 amid the prolonged Middle East conflict’s impact on economic activity and weaker investments.

While El Niño is expected to peak around November and may be the strongest on record, ADB economist Roshen Fernando said in the multilateral lender’s latest blog that the economic impact is expected to emerge next year and continue even after the weather pattern ends.

“El Niño hits hardest in the year after it forms, putting 2027 in the firing line. The usual view is that it delivers a sharp but brief blow to growth, after which economies bounce back,” he said.

However, he said recent research suggests that El Niño can slow productivity growth persistently in hot and dry economies.

He also said that most Southeast Asian economies may see long-lasting impact as farming accounts for 13 to 30 percent of output and 40 to 68 percent of jobs.