ALTHOUGH the export sector in the region dipped by almost 10 percent last year, Northern Mindanao remains the largest economy in Mindanao and the third highest in the country, reports from National Economic and Development Authority (Neda) said.

The Neda-led Regional Development Council (Neda-RDC) in Northern Mindanao bared in a forum Tuesday that exports in the region last year dropped by 9.69 percent in comparison to the same period in 2007.

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In an exclusive interview with Sun.Star, Neda Regional Director Leon Dacanay Jr. said the decrease could be attributed to the global financial crisis.

However, Dacanay said they are confident that the region's economy is resilient enough to withstand the slowdown in the export sector.

"Wala namang nagclose down talaga, only one -- Indian Steel. Even then, they closed down before the global financial crisis. Because of the drop in demand, many of the companies have instituted alternative working hour schemes or compressed working hours and some opted for a scheduled maintenance for their plants," Dacanay said.

"Babalik din in full blast ang mga yan and it is going to cost these companies if they retrench their workers. They will be spending more kasi pagmagrebound na ang local economy, di magrehire ka na naman. Pagkatapos nyan i-tetrain mo na naman ang mga yan," Dacanay said to explain why most of the export sector companies have opted for compressed working hours rather than retrenching workers.

In their 2008 economic report, Misamis Occidental recorded the biggest loss in the export sector with a decrease of 81.14 percent compared to that of 2007.

Except for Misamis Occidental, the rest of the provinces, Dacanay said, displayed modest increases in exports.

Leading the pack as the biggest exporter is Misamis Oriental which contributed more than half (58.94 percent) of the Northern Mindanao's total exports. It was followed by Bukidnon, which posted a growth of 29.46.

Although already affected by the global economic crunch, Dacanay said oleochemicals (coco semi-processed products) remain the top dollar earner of the region, accounting for 18.88 percent of the total exports.

Northern Mindanao's economy, Dacanay said, remains resilient even with the slowdown in the country's economy because of the global recession.

The gross regional domestic product (GRDP) value of Region 10, according to Neda-RDC's 2008 report, is pegged at P67.6 billion.

This figure is highest in the island and third highest in the Philippines in terms of per capita GRDP. Following closely is Southern Mindanao valued at P61.8 billion.