By Lilian C. Mellejor
DAVAO CITY, July 30 (PNA) — Davao region topped 14 other regions in the country in Gross Regional Domestic Product (GRDP) at 9.4 percent in 2014, surpassing expectations and achieving growth targets for 2016. It is the highest growth in the country for last year’s performance.
This was announced during the 2014 Report on the Economic Performance of Davao Region held jointly by the Philippine Statistics Authority (PSA) XI and the National Economic Development Authority (NEDA) on Thursday at the Ritz Hotel.
“Indeed, 2014 was a banner year for Davao Region, not only because it has sustained its high growth levels in the past three years,” said NEDA Director Ma. Lourdes Lim.
Lim said the region’s GRDP growth was higher than the national average with 6.1 percent. It is the third consecutive year that the region surpassed its growth targets.
Lim added that the region also contributed 3.9 percent to the Philippines Gross Domestic Product (GDP). The country’s GDP was valued at Php 7.2 trillion at constant 2000.
Lim disclosed that the region’s total production of goods and services was valued at Php 281.5 billion with services contributing the highest at 52.2 percent; followed by industry at 33.4 percent; agriculture, hunting, forestry and fishing at 14.4 percent.
Lim said services grew by 8.3 percent, which was spurred by wholesale/retail, financial intermediation, real estate subsectors given the region’s strategic position as the financial and trading center of Southern Mindanao.
Lim said Davao’s advantage gave way to expansion of business enterprises that increased demand for property/real estate, condominiums and socialized housing, and demand for office and residential spaces.
According to Lim, the operation of S & R, expansion of malls and restaurants factored in to the robust wholesale and retail activities in the region.
Lim also mentioned ICT Business Process Outsourcing with Davao City now ranked first among 37 Philippine outsourcing destinations. Davao region now hosts 32 ICT companies with an estimated 21,000 fulltime employees and combined earnings of P2 billion per annum.
The industry sector, Lim said, also grew the fastest in 2014 at 14.6 percent propelled by the manufacturing, mining, quarrying, electricity, gas, water supply subsectors. Under the industry sector, Lim said manufacturing contributed the biggest share at 66 percent and grew by 18.8 percent as it sustained performance of processing industries such as cement, food and beverages, and steel billets.
Other sectors also continue to post positive growth such as the construction industry which remained vigorous.
Lim said the agriculture sector also rebounded from the devastation of typhoon Pablo. Agriculture posted 2.4 percent growth rate from a negative 8.1 percent, and was slightly short of the target of 4.0 percent.
Lim said the fishing sector contracted by 27.9 percent due to lesser harvest following the imposition of a temporary ban on fishing in the Davao Gulf.
According to Lim, the decline can also be attributed to the adverse effects of climate change such as increase in sea temperature.
For 2015, Lim said they were targeting GRDP growth at 7.5 percent. “By all indications, we are optimistic to be able to achieve that,” she added. (PNA)