Davao posts double-digit economic growth in 2017

DAVAO CITY – Davao Region achieved a milestone doubledigit economic growth of 10.9 percent in 2017, the highest in the history of the region, owing to the stellar performance in industry and service sectors, a report released by the Philippine Statistics Authority (PSA) 11 on Thursday said.

During the presentation of the 2017 Report on the Regional Economy of the Davao Region at the Apo View Hotel Davao here, Rosendo Aya-ay, chief specialist of the PSA 11, said the region’s growth surpassed its 9.5 percent growth in 2016 and was the second fastest among the country’s 17 regions and the fastest in Mindanao.

The Cordillera Administrative Region (CAR), identified as a predominantly industrial region, posted the fastest growth rate at 12.1 percent.

Aya-ay said the region’s 2017 gross regional domestic product was higher compared with the national average of 6.7 percent.

He said the services sector accounted for the highest share in the gross regional domestic product (GRDP) with 49.6 percent; industry, 39.2 percent; and agriculture, hunting, forestry, and fishing, 11.2 percent.

Aya-ay explained that the industry grew by 19.1 percent, owing to the improving performance of the construction, which accelerated to 38.2 percent in 2017 from 24 percent in 2016; manufacturing, 11.4 percent from 11.3 percent in 2016; mining and quarrying, 18.2 percent from 15.7 percent in 2016. But electricity, gas and water supply decelerated to 3.8 percent from 43.5 percent in 2016.

He said services grew by 7.3 percent in 2017, slower than the 8 percent growth in 2016 while all of its subsectors contributed positively to the region’s growth, with trade and repair of motor vehicles, motorcycles, personal and household goods, at 8.8 percent from 7.9 percent in 2016; transport, storage, and communication, 7.1 percent from 6.3 percent; financial intermediation, 6.2 percent from 10.5 percent in 2016; real estate, renting, and business activities sustained its 6.8 percent growth in 2017; public administration and defense, and 5.6 percent from 5 percent in 2016.

The agriculture, hunting, forestry, and fishing recovered last year, growing by 1.7 percent after suffering from a negative growth of 1.3 percent in 2016.

National Economic and Development Authority (NEDA) 11 director Maria Lourdes Lim said she hopes the region will continue last year’s economic growth.

“This is the 6th consecutive year that the Davao Region surpassed our growth targets… The economic performance for the past six years is a manifestation that Davao Region has indeed sustained the momentum towards the achievement of rapid growth,” she said.

She said the 2018 target is within the range of 9.2 percent to 10.2 percent; 2019, 9.3 percent to 10. 3 percent; and 2020, 9.8 percent to 10.8 percent.

Lim said the region remained to be the Mindanao’s top economy as it did not only generate the highest value of economic output at R369.8 billion among the regions in Mindanao but also posted the fastest growth followed only by Soccsksargen at 8.2 percent and Autonomous Region in Muslim Mindanao at 7.3 percent.

Davao City Chamber of Commerce and Industry, Inc. (DCCCII) president Arturo Milan said the robust economic performance was expected as the region saw several development projects, including investments from private or government’s massive infrastructure program “Build, Build, Build.”

He said the road network connecting all the provinces around the city is currently being improved.

Milan said he hopes the economic momentum will continue to grow, most especially in agriculture, manufacturing, and services sectors in order to generate jobs and to strike a balance in the region’s growth.