PHILIPPINES: Widespread damage by an erupting volcano...

PHILIPPINES: Widespread damage by an erupting volcano in the Philippines is putting further strains on an economy already showing signs of a downturn and could discourage investors anxious about the withdrawal of U.S. troops. Infrastructure destruction caused by the eruptions of Mt. Pinatubo might not be as serious as that caused by an earthquake last year, Budget Secretary Guillermo Carague said recently. “But in terms of a slowdown in economic activity, damage caused by the eruption would be more extensive,” he said. The government estimated that damage caused by the eruptions, which began June 9, could reach $200 million. Repairs would cost much more. The labor department said 600,000 people may be forced out of work because of destruction of their farms, shops, factories and work places, swelling the country’s 2.2 million unemployed.