Davao Region 2nd fastest growing economy in 2018

DAVAO CITY -- Davao Region (Region 11) has posted an 8.6 percent growth in 2018, maintaining its position as the second fastest growing economy among the 17 regions across the country.

But while the economy is good, the National Economic Development Authority (NEDA) said the region’s growth rate decelerated from last year.

“We missed our plan target of 9.2 percent for 2018,” said NEDA-11 Director Maria Lourdes Lim, during the presentation of the 2018 report on the performance of Region 11 Thursday here.

Lim attributed the economy's slowdown to commodity supply shortages and severe inflationary pressures, amid soaring global oil prices.

"Yet, we are pleased with the outcome of the efforts of the private sector, the government, the public, and all development stakeholders of Davao Region in 2018," Lim said.

According to Lim, the region’s growth is higher than the national average of 6.2 percent. She said Davao Region’s total output was pegged at PHP400 billion, with the services sector contributing 49.3 percent, the industry sector at 40.1 percent, and agriculture at 10.6 percent.

Lim also highlighted the contribution of Region 11 to the national output, “channeling 4.4 percent to the total economic output of the Philippines in 2018”.

“These results show the region’s strong standing among its peers, validate its role as the prime economic, financial and commercial hub in Mindanao, and amplify its vast potentials as the primary growth center in the southern Philippines,” Lim added.

Lim also bared the robust performance of the services sector which grew by 8.1 percent, on account of the increasing value of outputs, particularly from transportation, real estate, retail trade, financial intermediation, and public administration.

She said public administration grew 12.9 percent while financial intermediation grew by 10.4 percent.

Lim said government expenditures on public services, including social protection and security and defense were higher in 2018 because of the current administration’s priority on peace, public order and security programs, social welfare and protection programs.

The positive growth in public administration contribution, Lim said, would not have been possible if government agencies had not achieved higher disbursement rates on their respective budget appropriations.

Increases in attention and investments are also conspicuous in the financial services, especially in the cities, as demand for financial services and products grew.

On security impact to the economy, Lim said there is a notable deceleration of armed groups and atrocities from armed sectors. She said martial law even has a positive effect notably on tourism arrivals.

For 2019, Lim stressed there is a need to catch up with planned targets especially in the agriculture sector, particularly the fishery industry which suffered a slump in 2018.

She also cited the need to improve productivity levels, capacitate fisherfolk, improve on financing and skills development and processing of products. (PNA)