Regional Development Council 11 (RDC 11) co-chairperson Arturo M. Milan told Edge Davao that the incoming 2025 midterm elections will be crucial for the future of Davao Region and the entire country.
Milan revealed that for the year 2025, Davao Region is expected to be slightly better during the first half of the year simply because it’s an election year, however, the second half will be a crucial one, depending on the outcome of the midterm elections.
“It can make or break the economy as a whole. We need to watch this closely. The main contributor to 2025 growth will be election spending. More money will be in circulation creating temporary disposable income for people to trigger consumer spending during the first half of the year,” he said.
Milan added that people can expect the implementation of government infrastructure projects as shown by the proposed 2025 budget where the Department of Public Works and Highways (DPWH) will get the highest share of the proposed General Appropriation Act (GAA).
“This increase in DPWH budget in an election year is also creating a lot of political noise from the people. Let’s remain vigilant and pray hard that the conduct of the incoming elections will be clean, honest, and orderly so that the trust and confidence of the people in our political leaders will be restored and that progress and development will continue to reign in our country and region,” he said.
Meanwhile, Milan observed that the economy of Davao Region in 2024 was unsatisfactory as prices of food continued to soar, and almost no government infrastructure implemented except for some ongoing flagship projects from the previous administration.
He added that not many new investments are coming in due to the current political situation, unemployment is on the rise, and tourist arrivals have been on the downtrend as fewer conferences and conventions are held in our region, particularly in Davao City.
Milan sees the Business Process Outsourcing (BPO) industry as the only bright spot for Davao Region’s economy this 2025 as companies continue to expand their operations.
“Having said this, Davao Region is expected to grow from 6.5% – 7% which is low if not the lowest growth rate compared to the recent past. It will still be the service sector, particularly the wholesale and retail and BPO subsectors, will be the main drivers of growth with contribution from private constructions,” Milan told Edge Davao.
“The only bright spot in the Davao economy is the BPO industry as it continues to expand its operation. Wholesale and retail businesses, the strongest driver of growth in the past are on a sustaining mode only,” Milan said.
Just last month, IBEX Philippines opened its second site in Davao City at Felcris Centrale.
According to Angel “Potski” Alvarez, president of IBEX Philippines, when full, the new site could house about 2,000 to 2,500 employees.
