Typhoons and Disaster Economics

How the Philippines faces around 20 typhoons a year, the devastation of Typhoon Haiyan in 2013, and how the country manages disaster risk and finance.

The Philippines is one of the world’s most disaster-prone countries.

Typhoons

Around 20 typhoons enter Philippine waters each year.
Earthquakes and volcanic eruptions also occur.

Typhoon Haiyan

Haiyan (Yolanda) struck in November 2013, one of the strongest storms ever recorded at landfall.
It killed over 6,000 people, mostly from storm surges in Tacloban.
Damage ran to billions of dollars.

Economic effects

Destroyed homes, farms and infrastructure.
Poverty increases in affected regions.
Research found typhoons can reduce household incomes and children’s schooling for years.

Risk management

Early warnings by PAGASA, the weather agency.
Evacuation systems.
Catastrophe bonds and insurance, like a World Bank cat bond issued in 2019.
Climate adaptation funds.

Climate finance

The Philippines is a leading voice for loss and damage funding at climate talks and hosts the board of the new Fund for Responding to Loss and Damage.

The storm surge

In Tacloban, a storm surge several metres high swept inland during Haiyan, destroying homes that residents thought were safe from wind alone.

Thinking disasters are rare shocks

The Philippines faces about 20 typhoons a year.

Key takeaways

About 20 typhoons enter Philippine waters yearly.
Haiyan (2013) killed over 6,000 people.
Disasters cut incomes and schooling for years.
Early warnings and catastrophe bonds manage risk.