THE National Economic and Development Authority (Neda) in Davao Region sees a remarkable growth in the region's economic growth for 2014, range from 6.8 percent to 7.5 percent.
"Our latest gross regional domestic product (GRDP) data in 2013, our estimate was at 7.2 percent. We are expecting [the growth], more or less, to be in the range of 6.8 percent to 7.5 percent [for 2014]," Maria Lourdes Lim, Neda Davao regional director, said in an interview during a media gathering at the Neda office Monday evening.
She said the services sector is expected to pull up the region's growth for 2014.
In Neda's initial assessment report on the region's economic performance, Lim said there is an increase in the production of some of the prime commodities in the agricultural sectoral.
She said banana production grew by eight percent; mango by 72 percent; coconut by four percent; corn by 26 percent; durian - 13 percent; rubber by 30 percent; cacao by 13 percent; palay by a percent; livestock by one percent; and poultry by two percent.
She said the increase in the production of prime agricultural products can be attributed to the planting of hybrid varieties, increase in the number of fruit bearing trees, and less incidents of pest and diseased.
"[However] there were decreases at the production of coffee at -0.9 percent; pineapple at -0.03 percent; and fishery at -22 percent," Lim said.
The decrease in production in the fishery sector was caused by the temporary fish ban in the middle of the year and "reduced catch due to strong winds in the municipal waters" while the decrease in the production of coffee and pineapple was due to crop shifting.
They are also expecting growth in the construction industry, financial intermediation, trade, manufacturing, and real estate and rental businesses by the end of this year.
Lim said there are also improvement in the region's key economic indicators --
investments, employment, tourism, prices and inflation, and infrastructure development.
"In terms of investments, the region generated P11.5 billion worth of Board of Investments (BOI) commitments as of the third quarter of 2014," Lim said, adding that bulk of investments were into logistics and transportation, real estate, and power generation.
Investments in logistics and transportation were the P5.72 billion seaport and container yard of the Hijo International Port Services Inc. (HIPSI) in Tagum City and the P2.65 billion Davao International Container Terminal (DICT) of the San Vicente Terminal and Brokerage Services Inc. in Panabo City.
"Private construction of residential and industrial buildings likewise raked in P9.1 billion," Lim said.
The Tudaya 1 and 2 of Hedcor in Sta. Cruz, Davao del Sur, which has a combined investment of P2.4 billion, leads as the largest investment in the power generation sector.
Lim said as of July 2014, employment rate increased to 93.8 percent from 93.5 percent "due to the additional workers employed in the services sector."
"Services accounted for more than 50 percent of employed workers at 985,000, followed by the agriculture sector with 729,270, and the industry sector with 256,230," she said.
Tourism arrivals increased by 3.04 percent as of the first quarter of 2014 with domestic travellers accounting for 92 percent of tourist arrivals. Even though foreign tourist arrivals were only eight percent, it achieved the biggest growth of 39.97 percent, mostly of which are Americans, Japanese, Koreans, and Chinese.
"This was due to increased marketing efforts and participation to international travel fairs," Lim said, adding that stable peace and order and development of tourism infrastructure also boosted the tourism arrivals.
As of June 2014, Lim said four major infrastructure projects in the region have already been completed. These are the P256 million Cateel irrigation project in Davao Oriental; P179 million upgrading of Lacson-Lamanan-Inayangan-Magkawayan road in Davao City; P168 million Compostela-Cateel road in Davao Oriental; and the P147 million upgrading of La Union-Mt. Hamiguitan in Davao Oriental.
She also said various infrastructure projects in Pablo-affected areas in Compostela Valley and Davao Oriental were completed like the P437.5 million construction of elementary school buildings; P83.7 million construction of secondary school buildings; and the P96 million river bank protection and bridge projects.
"As of November 2014, Davao Region's inflation rate of 3.6 percent was lower than the previous month's rate of 4.3 percent," Lim said, adding that the latest inflation rate was lower than the national average of 4.3 percent.
She said inflation was "due to increased costs of food and non-alcoholic beverages, electricity, and rice." "As we close the year 2014, we currently recognize that Davao Region has taken full advantage of opportunities as well as its fair share of challenges," Lim said.