Northern Mindanao posts 5.9% growth in 2017

THE region’s economy suffered a blow in 2017 as it posted only a 5.9 percent growth compared to the 7.5 percent growth recorded in 2016, the annual report of the Economic Performance in Northern Mindanao shows.

Philippine Statistics Authority (PSA) regional director Ronaldo Taghap said the deceleration of the economy is caused mainly by the decrease of services and industry sectors, which are both the major economy drivers of Northern Mindanao.

The region’s economy is predominantly servicesbased, Taghap added.

While the services sector posted the fastest growth among the sectors, Taghap said it only registered 6.6 percent growth last year, lower than 2016’s 8.3 percent growth.

Industry, likewise, dropped to 5.9 percent compared with the 9.8 percent growth in 2016, for more emerging sector investment opportunities.

“We are following the government in terms of priority projects. As we know, the plan is really to increase the growth of the economy nationwide even in the Visayas, Mindanao areas… That’s one reason why we got in logistics space to be able to be part of that growth of the economy moving forward,” Dybuncio said.

In 2017, the holding firm made investments of a 30.5-percent stake in leading Philippine end-to-end logistics company, 2GO Group Inc., and 61.2 percent in dormitory provider to young urban professionals, Philippines Urban Living Solutions Inc.

“We continue to explore which or how we can actually get involved in the e-commerce space. We are definitely focused in terms of looking at opportunities in that space,” Dybuncio added.

SMIC posted a net income of P32.9 billion last year, up 5.5 percent from the P31.2 billion in 2016. the report shows.

The Agriculture, Hunting, Forestry, and Fishing (AHFF) sector meanwhile grew by 4.7 percent faster than the 2.4 percent growth recorded in 2016.

Taghap said AHFF contributed 1.0 percentage point to the 5.9 percent growth of economic performance of the region in 2017. Agriculture and Forestry, which accounted for 87.5 percent of the total AHFF sector, increased by 5.7 percent.

Fishing, on the other hand, reduced by 1.6 percent due to the decline in tiger prawn and seaweed production.

Industry contributed 2.1 percentage points to the total recorded economy growth of the region. Manufacturing, which remained the highest contributor to the region’s economy, grew by 5.5 percent growth.

Electricity, gas, and water supply, including mining and quarrying, posted double digit growth of 13. 8 percent and 10.5 percent, respectively. Construction activities meanwhile expanded by 2.2 percent in 2017.

The PSA said services remained as the main driver of the region’s economy as it accounted for the biggest share of the total gross regional domestic product, contributing 2.8 percent to the total 5.9 percent rate of the region’s economy.

Trade and Repair of motor vehicles, motorcycles, personal and household goods which shared 36.4 percent of the total services grew by 5.9 percent.

The rest of the industries also posted positive growth, with other services at 8 percent, transportation, storage and communication with 7.5 percent, real estate, renting and business activities with 5.1 percent, financial intermediation with 7.6 percent public administration and defense, compulsory social security with 5.4 percent.

Northern Mindanao was the 11th fastest growing regional economy in the country in 2017, however, it was five ranks lower than its ranking in 2016.

Taghap said the region was one of the nine regional economies which posted growth lower than the national growth rate at 6.7 percent.

National Economic and Development Authority (NEDA) in Northern Mindanao Engineer Leon Dacanay, meanwhile, said the region’s economy performance in the next two years will be rosy.

As the government’s infrastructure program goes full blast next year, Dacanay said the economy rate is expected to double.

“Build, Build Build equates to construction and if you look at construction now, 2 percent lang ang increase sa (it only increased by 2 percent in) 2017, so next year it will translate to more projects. We just really have to have more manpower for these projects to be realized,” he said.

Dacanay also urged the local government units, who will host future investments, to show a friendly attitude to be able to invite more industries to come in the region.