The National Economic Development Authority (NEDA) expects negative growth for agriculture this year following recent typhoons that battered the country since last month.

"It's badly hit in the fourth quarter, so we expect negative growth for the entire year, for the full year now for agriculture. And as you know, agriculture is still a very important part of the economy," Economic Secretary Arsenio Balisacan told reporters in a press conference on Friday.

Balisacan said "the linkage of agriculture with the rest of the economy is quite extensive" noting that "any disturbance there will have an impact on the other sectors as well."

"The typhoons have also led to disruption of work, suspension of offices, not just in the public sector, but also in the private sector. So regardless of what sector you are, agriculture or not, you know, the economy suffered that way too," he said.

The Philippine economy grew 5.2 percent in the third quarter, bringing nine-month average to 5.8 percent, below the government target of 6 to 7 percent.

However, Balisacan believes the fourth quarter growth could be better than the third quarter, noting that ''positive forces'' could outweigh negative developments in the agricultural sector.

He said these ''positive forces are declining interest rates, lower policy rates of the Bangko Sentral ng Pilipinas, inflation going down to the target range of 2 to 4 percent and labor market.

"So I think all these makes me believe that the fourth quarter could be better than the third quarter," he explained.

Despite the effect of the recent typhoons, Balisacan said the inflation rate that is expected to be announced next week may have some increases but it will possibly remain at the target range of two to four percent.

"For November, for the month of November...We don't think that the new number will breach our target of two to four percent; it's probably still within that range. We see some increases, but we also see some decreases" he said. Robina Asido/DMS