Region XI can look forward to a “more improved economy” in 2017 after it posted robust growth and resiliency in 2016, according to the National Economic Development Authority.
NEDA XI Director Maria Lourdes Lim presented this assessment during the Kapehan sa PIA on Friday.
She attributed these developments to several indicators such as the recovery of the agricultural sector from El Niño in the second semester, continued boom in construction and property development, higher consumer spending partly due to the election and tourism-related activities, and the subdued increase in the prices of basic commodities.
Employment rate
NEDA reported 95.5 percent employment rate in 2016, 1.3 percent higher than 2015 rate of 94.2 percent. This translated to higher quality jobs, specifically in manufacturing and ICT sectors, as reflected by a lower underemployment rate of 16.7 percent compared to 2015 level of 18.9 percent.
Inflation rate
A 0.6 increase from last 2015 record of 2.6 percent inflation rate, NEDA said increase in prices of basic commodities is still slow at 3.2 percent.
Investments
In a data coming from Board of investments, NEDA reported that the region sustained high value project commitments costing a total of PhP4.74 billion, from its 2015 level of PhP4.8 billion.
Infrastructure and Property development
Major infrastructure projects were completed in 2016 such as the 300-MW San Miguel Corporation Coal-fired Power Plant in Malita, Davao Occidental; 150-MW Therma South inc. Plant in Dvao City and the 10-MW Solar Plant in Digos City by Enfinity Philippines Renewable Resources Inc.
According to NEDA, the region attained a significant boom in construction activities and property development as the value of private building construction amounted to P12.5 billion or a 74 percent growth from its level in 2015.
Agriculture
NEDA reported a decline of production of primary agricultural products in the region due to the adverse effects of El Niño phenomenon. However, director Lim stressed the sector has recovered in the second half of 2016.
For the region’s production of top export products, banana increased by 0.7 percent at 3,479,472 mt from its 2015 level of 3,455,014 mt. Meanwhile, Pineapple declined by 2.1 percent at 26,300 mt from 26,880 mt in 2015. Mango also declined by 2.8 percent at 52,764 mt from 54,335 mt.
Aside from El Niño, the decrease of demand from major trading partners such as Japan and China which experienced global slowdown also affected the industry.
Tourism
Tourism sector grew by 11.4 percent at 2.1 million visitors. Tourist receipts, also increased by 9.1 percent at PhP23.9 billion from 2015 record of PhP21.9 billion. Lim attributed this surge to Department of Tourism’s MICE (meetings, incentives, conferences and events) program, the efforts of the local government units in tourism promotion as well as election and post-election-related activities such as Sulong Pilipinas and summits held in Davao City.
Economic prospects for 2017
NEDA said Davao Region could expect acceleration of government spending for big-ticket infrastructure projects such as the Davao City Bypass Rod, Davao Coastal Road Development Project and the Mindanao Railway System.
Also, tourism sector will continue to surge due to the region’s hosting of numerous MICE events, including the recently-concluded Mindanao Tapestry Event of Miss Universe, and the several ASEAN 2017 meetings.
Meanwhile, prospective energy projects in the regions will include a diesel power plant in Mati by the Total power Incorporated, scheduled for testing and commissioning on December 2017.
With these, NEDA said the region could achieve or even surpass its 2017 Plan target of 8.6 percent Gross Regional Domestic Product (GRDP).
