by Lorie Ann A. Cascaro
The National Statistical Coordination Board (NSCB) and the National Economic and Development Authority (NEDA) reported Thursday the economic performance of the Davao region in 2009 in a press conference at the Philippine Information Agency (PIA) office.
The gross regional domestic product (GRDP) increased from the total output value at P63.9 billion with 3.7% growth rate in 2008 to P67.4 billion with 5.4% in 2009. The NSCB regional head said the region’s growth rate was higher than that of the national or the gross domestic product (GDP) which was at 1.1%.
Estrella R. Turingan said the region “has the most balanced economy”. In the entire Philippines, Davao is fourth in the ranking of regions with the highest growth rates in 2009. Bicol with 8.2%, Zamboanga Peninsula 6.8% and Western Visayas 5.9% are the top three regions, respectively. This means that Davao is second highest in Mindanao next to Zamboanga Peninsula.
“I think it’s high time for us to be comparing ourselves to other regions in Mindanao because the good thing is that Mindanao is growing. Isn’t it something to celebrate?” she said.
With Zamboanga Peninsula and Davao as the top two among Mindanao regions, following are Northern Mindanao with 2.9% growth rate, Caraga 2.7%, Autonomous Region of Muslim Mindanao (ARMM) 2.6% and South Cotabato-Cotabato City-Sultan Kudarat-Sarangani-General Santos (SOCCSKSARGEN) 1.3%.
Noel Quiratman, officer in charge and assistant regional director of NEDA 11, reported that the main drivers of the significant growth of the GDRP are services, industry, and agriculture, fishery and forestry (AFF) sectors. The services sector contributed 41.1% or P27.7 billion in the total output value. The industry sector output was at PhP23.2 billion, and the AFF at P16.4 billion.
The growth of the industry sector, which posted the highest rate at 10.2% in 2009 and contributed the most in the growth at 3.35%, Quiratman said, was “mainly attributed to the surge in private and public construction subsector by an impressive 19.6% as a result of the construction boom in property development, mainly in medium-rise and high-end condominiums, particularly in Davao City.”
Reaching a total value of investments at P8.8 billion, construction had the highest investment in commercial purposes at P4.9 billion, which consisted of shopping malls, an IT Park and warehouses. Also contributing to the growth of the industry sector are the manufacturing sector by 7.1%; electricity and water 5.1%; and mining and quarrying 3%.
Increase in BPO
The growth both in the industry and services sectors was also attributed to the increase in the number of business process outsourcing companies (BPOs) in the region, Turingan said.
The increase in BPO, she added, contributed to the growth of the services sector, particularly in transport, communication and storage by 6.2%, private services 11.3%, and of the industry sector, particularly in construction by 19.6% in 2008-2009.
NEDA also stated that the proliferation of business services provided by BPOs for medical, health and wellness, education and recreation contributed to the growth of private services subsector by 11.3% compared to 5.2% in 2008.
Short of target
Acknowledging the significant growth of the Davao region’s domestic product, the NEDA says it was still short of the target of 6.3% for 2009. However, it foresees achieving the 2010 target of 6.5%.
This is due to more opportunities in the areas of information and communication technology (ICT), especially high-end BPO; mining; high value agribusiness; tourism, such as retirement estates, diving destinations, health and wellness; and renewable energy.
Turingan said the region’s economic growth may be sustained or even increase by end-2010 with the presence of BPOs and an increase in the number of call center seats by 14% in 2009 at 5,133 compared to 4,500 in 2008.
Quiratman purported the sustainable strong economic position in 2010 due to opportunities of investment commitments reaching P2.7 billion.
These include areas in high-tech equipment assembly by European investors, computer assembly plant, agri-business, e-learning (school-based), e-photo editing, feedmill operation, manufacture of activated carbon, cold storage, wood processing, manufacture of corrugated boxes, expansion of BPO and e-training or online language training. Also, a potential value of US dollars 2.1 trillion for agriculture sector in the halal market.
“I think we’re doing it right. We’re just fine as long as we sustain it,” Turingan said.
Poverty incidence
The NSCB provided the latest rate in poverty incidence of families in all areas in the Davao region at 30.6% in 2006 compared to 28.5% in 2003.
With the population now pegged at 4,156,653, the region has an unemployment rate which is still similar at 6% from October 2009 to January based on the new definition of unemployment. Underemployment increased from 22.8% in January from 17.1% in October last year.
