MANILA - While the Philippines is no stranger to typhoons, those that batter its political and economic capital hit the country’s bottomline more than ever.

Tropical storm "Ondoy" did just that to "Imperial Manila" over the weekend.

And while a thorough accounting of the economic costs may be too early at the moment, the writings on the wall are evident as far as the impact of the killer flood is to the economy.

After all, Metro Manila, which is the anchor metropolis for what is regionally classified as the National Capital Region (NCR), is the country’s top contributor to the overall economy.

According to data from the National Statistics and Coordination Board (NSCB), NCR accounts for up to 33% of the national economy.

All other regions do not even come close. Calabarzon, which hosts various industrial and agricultural areas located south of NCR, is a far second with an 11.9% contribution.

The top 5 regions—NCR, Calabarzon, Central Luzon (8.3% contribution), Western Visayas (7.3%) and Central Visayas (7.1%)—are historically the main contributors, accounting for over two-thirds of the national
economy.

And as far as economic growth is concerned, NCR, most often than not, tops all other regions.

In 2008, when the country’s gross domestic product (GDP) grew by 3.8%. Of that, 1.6% was because of the economic activities in the NCR.

In terms of income per capita GRDP (gross regional domestic product), a rough measure of how the wealth of each region’s resident grew, NCR tops the list again.

In the NSCB 2008 data, NCR remained to have the highest per capita GRDP index relative to the national average at 265.35% in 2008.

NCR, the Cordillera Administrative Region, and the Northern Mindanao region are the only regions in the country whose per capita GRDP index relative to the national average lies above 100%.

Disparity

The disparity between NCR and other regions has long been evident owing to the country’s political and economic history.

Manila—just like any other major city in the world that experienced growth due to its strategic location for traders that calls on ports—has spawned the wealth of the country’s old and new rich.

Expansions to Makati, Ortigas, and other business districts, eventually became inevitable for practical considerations, like space and real estate prices.

Metro Manila now consists of 16 bustling cities and one municipality. It hosts most of the central offices of the country’s largest corporations.

Last Tuesday, the National Economic and Development Authority estimated, based on available data from various government agencies, that tropical storm "Ondoy" will shave off about 0.043% from the country’s economic growth this year.

The typhoon inundated major parts of Metro Manila, especially the eastern cities, at levels not experience by this generation.

In a piece carried by BusinessWorld, former budget secretary Benjamin Diokno called the disaster as the "Great Flood".

Consumer confidence

Diokno said that the most telling effect of "Ondoy" would be on consumer confidence.

"For an economy where personal consumption expenditures account for almost 80% of the nation’s gross national product, the effect of weaker consumer confidence could be overwhelming. Since the tragedy has affected rich, middle-income, and poor people, the flood’s impact on consumption is expected to be deep," he wrote.

"The confidence of those who suffered has been devastated. Those who have lost everything have to start anew," he added.