Davao Region posts 6.6% growth in service sector-A A +A
Wednesday, August 13, 2014
THE growth of service sector in Davao Region slowed down to 6.6 percent in 2013 from 8.8 percent recorded in 2012.
Data from the Philippine Statistics Authority-Regional Statistics Coordinating Unit (PSA-RSCU) showed that the gross regional domestic product (GRDP) of the service sector grew only to P136.48 billion in 2013 from P127.99 billion in 2012.
The service sector covers transport, storage, and communication (TSC); trade and repair; financial intermediation; real estate, renting, and business activities (RERBA); public administration and defense (PAD). The TSC registered the biggest deceleration from 8.2 percent in 2012, wherein the industry grew from P18.09 billion in 2011 to P19.57 billion in 2012, as compared to its 3.4 percent growth last year where it only increased to P20.23 billion from P19.57 billion in 2012.
Decelerated growths were also recorded in trade and repair wherein in 2013 it only grew by 5 percent to P50.45 billion from P48.05 billion in 2012 as compared to its growth in 2012 at 10 percent; and PAD where in it only grew by 5.1 percent to P7.07 billion from P6.73 billion as compared to the 6.6 percent growth it had in 2013.
National Economic Development Authority (Neda) regional director Maria Lourdes D. Lim, in an interview with reporters on Tuesday, after the Tagum Biz Talk at Big 8 Hotel, said in order to improve the growth of the service sector, resources should be directed to the rehabilitation efforts in Pablo-affected area, particularly on infrastructure.
With improved infrastructures, she said they can expect an improvement in the economy and a inflow of investments that will allow boost the sector.
Despite the decelerated growths in TSC, trade and repair, PAD, accelerated growths were observed in financial intermediation, RERBA, and other services.
Financial intermediation grew by 13.5 percent in 2013 to P13.63 billion from P12.01 billion in 2012 with a growth rate of 12.1.
"Financial intermediation came in strong in 2013 as evidenced by outstanding deposits amounting to P129.5 billion, which was the highest deposit level among Mindanao regions; high loans-to-deposits ratio of 36.6; and increase in net loan portfolio at 20.5 percent compared to 2012. In terms of bank service availability, the region had 388 bank branches as of December 2013, which is the most of any region in Mindanao," said Lim during the presentation of the 2013 Economic Performance of the Davao Region last July 31, 2014.
On the other hand, RERBA grew by 10.3 percent to P20.11 billion from P18.23 billion. Lim said the growth in this sector benefited from sustained demand in residential and office spaces which led to the spur in growth in condominiums and commercial buildings.
Other services grew by 6.8 percent to P24.98 billion from P23.39 billion. Robust growth was also noted in wholesale and retail trade, tourism industry, and ICT-BPO sector.
Published in the Sun.Star Davao newspaper on August 14, 2014.