BIGGER SHARE FOR INDUSTRY
To reduce poverty and allow workers in agriculture to transition, Neda 7 Director Efren Carreon says industry needs to contribute a larger share in the economy.
To reduce poverty in Central Visayas, the industry sector needs to get a larger share of the region’s economy, said a local economic official.
National Economic and Development Authority 7 Director Efren Carreon said that industry yields the highest productivity over services and agriculture.
Based on the newly-released gross regional domestic product (GRDP) of Central Visayas in 2016, the services sector took up 55.5 percent of the region’s economy, followed by industry at 39.1 percent, and agriculture, hunting, forestry, and fishing (AHFF) with a 5.4-percent share.
According to Carreon, industry, which includes the subsec- tors manufacturing and construction, generates the highest number of jobs-- and where players in the agriculture sector may have more chances of joining, especially at a time when agriculture is decelerating.
“Agriculture remains to be a challenge...and this is where poverty is really high,” said Carreon. While he did not wish to disregard agriculture in the region, the industry sector is where alternative jobs are readily available for those in agriculture.
At present, Central Visayas, whose economy expanded by 8.8 percent in 2016, remains a service-oriented region, primarily with the large contribution of information technology and busines process management (ITBPM) and tourism.
In 2016, the industry sector propelled a 14.6-percent growth, with the biggest contributor being the construction subsector, which expanded by 40 percent, primarily led by private construction activities.
“According to one major property developer in Cebu, demand for housing is now comparable with the demand in Metro Manila. Construction activities in Central Visayas will continue to remain upbeat in the next plan period as the private sector continued to invest in real estate development projects, coupled with high government spending on infrastructure under its Build, Build, Build Program,” said Carreon.
Over the next years, the official said construction will even soar higher, especially with the Duterte administration’s thrust on infrastructure.
Among the big-ticket projects in the pipeline are the New Cebu International Container Port, the Cebu- Cordova bridge and as the Metro Cebu Expressway that will connect the towns from the City of Naga and Danao City.
Central Visayas’ economy, valued in 2016 at P525 billion, is set to build on an impressive growth, hovering between 7.5 percent and 8.0 percent on the average by 2022.