Mindanao ‘vital’ in PHL economic growth-A A +A
Friday, June 20, 2014
MINDANAO has played a vital role in propelling the country’s economy, an economic expert, citing a 2012 data from the Philippine Statistics Agency-Northern Mindanao (PSA-10), said Wednesday.
Dr. Cayetano Paderanga Jr., founding chairman of the Institute for Development and Economic Analysis (Idea), cited the island's contribution to the country's economy during his presentation at the Mindanao Shipping Conference held at Lim Ket Kai Luxe Hotel on June 18 which was attended by business executives, economic researchers and other stakeholders in Mindanao.
Paderanga furthered the Philippine’s economy is still among the fastest growing in Asia.
Data sourced from the Philippine National Statistical Coordination Board (NSCB) showed that the Philippines’ growth rate is 5.7 percent, ranking third among other selected countries.
The leading country in Asia is China with 7.4 percent followed by Malaysia with 6.2 percent.
World Bank’s figures using 2012 population estimate remittance inflow from the Philippines supports domestic consumption growth, on the demand side.
The Bureau of Treasury data indicate there is enough room to spend more, since deficit consistently fell below the expectations, and exports have increased by 20 percent from 2013 to 2014.
On the supply side, all sectors are contributing to growth headed by manufacturing and industry.
Inflation has shot upward which means policy space has narrowed but still, prices have remained reasonable.
With an 8.2 percent economic growth rate, Mindanao contributed significantly to the Philippine economy from its 6.8 percent in 2012.
The PSA data added 23.8 percent of the country’s population came from Mindanao (in 2010), and 37.4 percent of the Philippine’s agriculture, forestry and fisheries is contributed by Mindanao (2012 data).
Mindanao also contributes more than half of basic crops, banana and pineapple in the country.
The industry’s National Growth Domestic Product (GDP) quarterly growth showed construction being the strongest among the sub-components in 2012.
However, it slackened after 2013’s first until the fourth quarter. Manufacturing has maintained its figures in 2012 and increased by 5 percent in 2013.
Also, services have consistently grown except for public administration and defense, and compulsory social security.
Mindanao’s annual GDP per capita is topped by the Davao region and Northern Mindanao for the period of 2010-2012.
Exports from Mindanao grew to 16.7 percent in 2012. It owns a 12.7 percent share to total Philippine exports, as shown in PSA’s figures on Mindanao Trade Performance study comparing 2011 and 2012.
The region also contributed 60 percent share of total agro-based exports.
With U.S., China and Japan continuing to be Mindanao’s top markets, demand for exports will definitely grow.
Granting that the Association of Southeast Asian Nations (Asean) integration poses difficulties as well as opportunities, Paderanga said, Mindanao has advantages with its tourism, mining, agribusiness and business process outsourcing (BPO) industries.
“The economy has everything it needs to maintain at least 6 percent growth on the back of traditional growth drivers,” he added.
Increased economic activity definitely indicates continuity of growth in the region, he said.
Risk factors specifically quantitative easing tapering and turbulence in the emerging market economy, global economic recovery, natural disasters and geopolitical tensions may be a threat to the country’s growth, Paderanga said.
Published in the Sun.Star Cagayan de Oro newspaper on June 20, 2014.