Business leader and former Mindanao Business Council (MBC) Chair Joji Ilagan-Bian expressed a optimism on the business outlook of Davao City and Davao Region this year and attributed it to the resiliency of the city and the region’s economy.
Bian told Edge Davao that Davao Region, most especially Davao City, continues to show an upward trend in economic development in all key sectors that contributed to its Gross Domestic Product (GDP) in the industries, services, manufacturing, and agriculture.
“I am looking at a very optimistic GDP growth rate of 8.5 to 9% which is higher than the national projected GDP. This can be attributed to the resilience of the Davao economy amidst all the challenges from all arenas – global uncertainties and political constraints,” Bian said.
According to the Philippine Statistics Authority’s (PSA’s) available data, the GDP of Davao City in 2023 was P532.54 billion, an increase of 7.5% from 2022. The city’s GDP contributed 52.3% to the Davao Region’s GDP of ₱1.02 trillion in 2023.
Davao City Investment Promotion Center (DCIPC) credited the city’s economic growth to various factors including its relationships with 16 sister cities across the Philippines and six international cities, fostering connections that span cultures and economies.
DCIPC said that since 1994, these partnerships have been pivotal in enhancing global visibility, driving economic growth, celebrating cultural diversity, and promoting sustainable development.
In December last year, Davao City was recognized as the fastest-growing economy in the region, with an impressive 7.5% growth rate in 2023, according to a report by the PSA.
In terms of regional contribution, Davao City accounted for a remarkable 52.3% of the Davao Region’s Gross Domestic Product (GDP), which totaled PhP 1.02 trillion in 2023.
The PSA also cited the major industries in the Davao Region in 2023 were: services- 60.9% or P620.08 billion; industry-24.6% or P250.94 billion; and agriculture, forestry, and fishing- 14.5% or P147.18 billion.
According to PSA Davao, Davao Region is the only regional economy in Mindanao that grew faster than the country’s 5.5 percent GDP in 2023 with the service sector taking the lion’s share of the economy’s value at 60.9 percent, with industry coming second at 24.6 percent and agriculture, forestry, and fisheries at 14.5 percent.
Bian added that the key growth drivers of Davao City and Davao Region will always be strong private sector-led investments.
Among sector-led investments ongoing and soon to be implemented in Davao City and the Davao Region include the Samal Island-Davao City (SIDC) Connector Project, the Mindanao Railway Project (MRP), the Davao Coastal Bypass Road, and the Davao Bypass Road Project.
