The country’s gross domestic product (GDP) is projected to grow by 3.8 percent in the fourth quarter of the year amid the impact of the recent typhoons, according to the FMIC and UA&P Capital Markets Research.

After showing signs of an emerging economy in the second and third quarters of the year, the domestic economy was hit by catastrophic, record rainfall and floods in end-September, which have put a dampener on the speed of the recovery.

The main impact of the flooding is on agricultural output, especially rice, and slightly on manufacturing in the low areas of Metro Manila and Northern Luzon.

This will be partly offset by the spending on new appliances, furniture and repairs of houses, buildings, and infrastructures.

“We think this will shave fourth quarter GDP estimates by 0.5%, and so we now expect it to rise by 3.8%, which will still enable it to beat the high end of government projections,” said FMIC and UA&P’s latest issue of Market Call.