ISTANBUL
The cost of Typhoon Neoguri, which hit Japan and the eastern shores of China on Monday, might be at least US$10 billion, a prominent expert has claimed.
Speaking to Anadolu Agency, Ahmet Goncu, associate professor at Xi’an Jiaotong Liverpool University in China said: “It is difficult to estimate the cost of the typhoon at this stage... , however we can say that its cost might be over 10 billion dollars considering the costs of previous similar disasters happened in the region.”
The huge typhoon, the largest of the region’s storm season so far, has also hit Japan and is expected to pass over the country’s eastern shores on Friday.
In the aftermath of the storm China’s central government could be faced with an increasing financial burden if regional losses continued to increase, Goncu pointed out.
“The effects of typhoon would play second fiddle to the Chinese economy as it is strong and its impact would not be felt all over the country; it might only have local effects,” Goncu said.
Zafer Ergezen, commodity markets expert and economist, said that the typhoon would have a limited impact on energy prices, unless the effects of the storm persisted over time.
The effects of the typhoon on factories and shipping would mainly affect iron and steel prices; a delay might occur in iron and steel commodities of Korea and Japan and this would increase risk premium pricing, said Ergezen.
He added that the typhoon might raise rice and coal prices; it is expected that it will be the most severe storm ever seen in recent years and for this reason its effects might linger beyond the short-term.
Neoguri could also hinder shipping and production in the region, Ergezen said.
Neoguri, the eighth typhoon since the beginning of this year, got its name from a Korean word meaning "raccoon”.
The Asia Pacific region was also hit by Typhoon Haiyan last year which cost the Philippines economy US$10-15 billion.
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