This aerial photo taken from a Philippine Air Force helicopter shows the devastation caused by Typhoon Haiyan in Guiuan, Eastern Samar province, central Philippines, Monday, Nov. 11, 2013.
The human toll is calamitous, with up to 10,000 people killed and whole towns and villages destroyed, but the damage to the Philippines' burgeoning economy may be limited to the area hit hardest by Typhoon Haiyan,experts said Monday.
Philippine Finance Minister Cesar Purisma told CNBC on Monday that the typhoon would shave between 8 to 10 percent off the region's gross domestic product next year, and roughly 1 percent of the Philippines's overall growth.
The storm ravaged the island of Leyte and neighboring island Samar, sending storm surges as high as trees and wind gusts reaching 175 miles per hour.
Since the typhoon made landfall on Friday, the Philippines' domestic currency - the peso - has weakened by 0.3 percent against the dollar to trade at around 43.405. Meanwhile, the Philippine stock market fell 2.2 percent in the first half an hour of trading Monday.
According to PJ Garcia, head of institutional business at BPI Asset Management, the economic impact of the typhoon should be contained to the area of the Philippines most heavily hit and the effect on the rest of the economy should be minimal.
"This is a very unfortunate event. It's unprecedented in terms of the damage done [to the region]...The market will likely, of course, see some correction from here in the short term, [but] in terms of the impacts on earnings for listed companies, I think the impact is not as adverse as the devastation on the ground," he said.
Garcia added that the damage to the economy was unlikely to show up in the Philippines' final quarter economic data, but would come through in the first quarter of next year, with the agricultural sector taking the heaviest hit.
The hardest-hit province of Leyte produces a high level of rice and sugar.
"Remember before the super typhoon hit the region, a lot of the farmers were under harvesting period. Unfortunately they got hit before they could harvest their produce and that will affect agricultural output... We expect a one-off spike in inflation at least for November and December as a result of the agricultural losses," he added.
Garcia added that a silver lining would be the massive infrastructure re-building effort the region would require, which could help offset the damage to growth.
The Philippine economy has bolted ahead in recent years, clocking a 6.6 percent growth rate last year. The government is targeting a similar level in 2013.
Ray Attrill, co-head of FX strategy at the National Australian bank, said the Philippines peso was set to suffer a similar plight as the Indonesian rupiah in the aftermath of the 2004 tsunami.
"In that case [the 2004 tsunami] the rupiah did fall about 10 percent in the immediate aftermath... my guess is we are closer to the 2004 tsunami [in terms of similar reaction]... which probably means downward pressure on the peso," he said.
Attrill added that he expected the selloff to be short-term, as large-scale foreign aid flowing into the region combined with a likely increase in foreign workers sending extra money back home, which makes up a large part of the Philippines' economy, would likely provide longer term support.
—By CNBC's Katie Holliday: Follow her on Twitter@hollidaykatie
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First published November 11 2013, 4:35 AM