CV will hit growth target: Neda official

THE National Economic Development Authority (Neda) 7 is confident Central Visayas will meet its gross regional domestic product (GRDP) target of 7.3 percent growth this year. The elections will stimulate growth and help the region surpass growth targets, an official of the agency said.

“Growth projection this year is between 6.7 percent to 7.3 percent but since this year is an election year, we expect growth would be higher than the targets,” said Neda 7 assistant director Efren Carreon.

He said election spending will boost earnings of companies in media and advertising, printing, retail and transportation, among others.

GRDP is the total of the value of goods and services produced in a region.

Neda forecast that the country’s economy will grow six to seven percent this year and accelerate to 6.5 to 7.5 percent by 2014. The agency said the growth would be mainly driven by manufacturing and construction.

Based on the partial 2012 Neda 7 situationer, Carreon said the region “sustained” its growth rate, even exceeding the national growth of 6.6 percent.

In 2010, Central Visayas, which comprises Cebu, Bohol, Siquijor and Negros Oriental, recorded a GRDP growth of 12.5 percent, the highest in the country. In 2011, however, the region landed second to Caraga, which logged 7.9 percent.

“That was an unprecedented growth, we only expect growth somewhere between five to six percent,” Carreon said.

For 2012, Carreon is optimistic the region would grow by 6.5 to seven percent and generate at least P641 billion. He identified the booming services sector as among the sectors that posted the highest growth at 21.5 percent as of October 2012.

The services sector includes transport, storage and communication; trade; real estate renting and business services including outsourcing sector and tourism sectors.

While the services sector has opened job opportunities to the region, Carreon urged investors to also re-invest in manufacturing.

He backed recommendation of Asian Development Bank (ADB) senior country economist Norio Usui that the country maximize the potential of the services and manufacturing sectors.