Davao Region’s inflation percentage rose to 6.2% that is slighter higher than the national inflation average, according to the Philippine Statistics Authority.
PSA records show that in July 2018, the Davao region’s inflation record topped the 5.7% National Inflation Average with a 0.5% difference.
Despite this, Jan Ocampo of the Bangko Sentral ng Pilipinas department of economic research said Davao is one of the fastest growing regions in the country with a growth rate of 10.9%.
Ocampo said the higher inflation of the region is attributed to the faster increases in the major items such as clothing and footwear, utilities, heath care, transport, communication and recreation.
“The drivers of the inflation in particular are higher food prices, utility prizes and transportation cost,” Ocampo said.
He added that the inflation is supply driven, with alcoholic beverages and tobacco as the leading major item in contributing to the inflation percentage of 15.4%, followed by transportation with 9.2% and housing, water, electricity, gas and other fuels with 6.9%.
Amidst the recorded inflation rate, Ocampo said that Davao Region is one of the fastest growing region in the country right now.
In a 2017 data, Davao Region’s Annual Growth Rate in 2017 grew by 10.9% compared to the current national average for the past couple of years.
Ocampo said that despite the challenging external environment, most regions are experiencing economic growth.
“The industry sector, both manufacturing and construction sector, have been growing double digit rates for the past 5 years,” Ocampo said
He added that the growth resulted in the increasing share of the industry to the region’s total gross domestic product (GDP) of 40% in 2017, from 30% in 2017.
He also said, “The industry sector is very important in term of generating employment which contributes to a double digit rate for the past couple of years.”
Ocampo is one of the BSP officials that oversaw the first public information campaign (PIC) on inflation developments at the BSP Davao Regional Office last August 24.
He said the Philippines’ economic growth that the country has sustained economic expansion amidst the ongoing inflation.
During the first half of 2018, he said that the country has attained a slowdown growth 6.3% in GDP.
Ocampo emphasised that the slowdown was due to the economic structural reform, implemented to help sustain growth in the long run.
Factors that were attributed were the temporary closure of the Boracay Island in April this year, the stricter regulations in the mining industry, and the current issues in the fishery sector.
Ocampo says that these factors will then help in improving the country’s market growth in the coming quarters.
