Sunday , June 24, 2018

9.4% growth recorded in Davao Region's economy

THE Davao Region economy jumped to 9.4 percent growth in 2016 from the 8.2 percent in gross regional domestic product (GRDP) it posted in 2015, latest data from the Philippine Statistics Authority (PSA) showed.

The economic performance of the region capped the "2011-2016 Medium Term Plan Period" on a high note.

National Economic Development Authority (Neda) regional director Maria Lourdes Lim said in Thursday's press conference at The Royal Mandaya Hotel that the region's economic performance in 2016 surpassed the target growth set at 8.2 to 9.2 percent.

Based on the PSA data, Davao Region's growth is much higher than the national economic performance pegged at 6.9 percent in 2016.

PSA-Davao officer-in-charge-regional director Ruben D. Abaro, Jr. for his part, said the region contributed 4.1 percent to the national GDP in 2016, slightly higher than its four percent share in 2015. It ranked fifth among all the regions in the country in terms of regional shares.

In terms of growth, it ranked third after Eastern Visayas at 12.4 percent and Central Luzon at 9.5 percent.

Autonomous Region of Muslim Mindanao, on the other hand, posted the slowest growth of 0.3 percent.

The upward economy, Abaro said, was attributed to the faster growth of the industry sector.

Davao Region's industry sector accelerated from 12.2 percent in 2015 to 16.5 percent in 2016, the fastest among the major industries in the region.

"This is was due to the improved performance of electricity, gas and water supply (EGWS) and construction. EGWS accelerated by 44.5 percent from 16.1 percent while construction recorded higher growth rates at 25.8 percent from 10.2 percent," he said.

Abaro further explained that the service sector managed to sustain its 7.5 percent growth, with three of its six subsectors posted accelerated growths. The biggest acceleration was observed in Financial Intermediation which grew by 10.2 percent (from 5.5 percent in 2015); trade accelerated to 7.5 percent (from 7.4 percent); and public administration and defense grew by 5.1 percent (from 2.6 percent in 2015).

Transportation, storage and communication; real estate, renting and business activities and other service declined.

"The slowdown and adjustments in terms of real estate and other service sectors signal the players to conduct market analysis. For example in real estate, we must ensure that there are takers in all we are constructing," Lim said.

Other industries that showed setback in growth are mining and quarrying from 25.6 percent in 2015 to 15.7 percent growth in 2016 and manufacturing from 12.4 percent in 2015 to 11.2 percent last year.

"The low production of gold in 2015-2016 has contributed to this decline in mining and quarrying industry but for manufacturing we consider it as just a slowdown, the growth is still considerably high," Abaro said.

In industry/sectoral distribution, the service sector secured the biggest share to the region's economic output at 51.1 percent followed by the industry sector at 36.7 percent share and agriculture, hunting, forestry and fishing (AHFF) with 12.2 percent share.

2017 and beyond target

Lim said that with the numerous big ticket projects committed by the government, private sector and the foreign partners, they hope to sustain or surpass the 2016 economic performance.

"We target to hit at least 8.6 percent to 9.6 percent growth in GRDP in 2017," she said.

She added that the big ticket projects in transportation, infrastructure, agriculture, power and tourism, among others, will help Davao Region in 2017 achieve two-digit growth rate in GRDP.