Covid-19 brings 5.2% contraction to Region 10 economy

CAGAYAN DE ORO CITY--The regional economy of Northern Mindanao contracted by 5.2 percent in 2020 in terms of its Gross Regional Domestic Product (GRDP) compared to the previous year, reflecting the fallout caused by the coronavirus disease (Covid-10) pandemic, according to the report by the National Economic Development Authority in Region 10 (Neda-10) on Thursday.

During the Philippine Statistics Authority-Region 10 (PSA-10) news conference on the "2020 Economic Performance of Northern Mindanao," Neda-10 Director Mylah Faye Aurora B. Cariño said the region ranked third slowest across the country in terms of the economic downtrend.

“This is well within our adjusted target range of negative 4.7 to 7.5 percent growth for the year, and even better than the country’s average of negative 9.6 percent,” Cariño said.

Information and Communications Technology and Financial Services sectors recorded growth, showing increased uptake of digital financial services pushed by the dire necessity for internet connectivity amid the pandemic.

The Agriculture sector was also up by 1.5 percent owing to increased demand for food, and favorable weather conditions.

Government spending logged positive growth among expenditures, although performance eased to 13.0 percent from 18.6 percent in 2019.

The hardest-hit were Accommodation and Food Service Activities with -49.6 percent, and Transportation and Storage with -39.5 percent. Private Consumption and Wholesale and Retail Trade, which shared the bulk of the region’s economy, shrunk by 7.4 and 5.7 percent, respectively.

The negative impact of the quarantine measures to mitigate the spread of Covid-19, and improve health system capacities are evident in these sectors, Cariño said.

Despite the overall slowdown caused by limited economic activities and mobility, the region saw improvements in employment figures in the second half of the year as the economy gradually reopened.

Unemployment decreased from a high of 11.1 percent in April to 5.6 percent in October.

Underemployment returned to pre-Covid level as it improved from 29.4 to 20 percent in the same period.

The regional average inflation rate for 2020 settled at 2.1 percent, lower than the registered 2.9 percent in 2019. This stays within the 2.0 to 4.0 percent target range of the Bangko Sentral ng Pilipinas.

Cariño said 2021 prospects are encouraging and would allow Northern Mindanao to recover to pre-pandemic positions in 2022.

“The timely implementation of the vaccination program will greatly contribute to the country’s strong recovery,” she said.

The national government seeks to vaccinate 70 million Filipinos by the end of 2021 up until early 2022, giving premium to frontline health workers, vulnerable groups, and economic frontline workers. (PNA)