Central Visayas economy grows 8.8% in 2014

• Source: http://www.sunstar.com.ph/cebu/business/2015/07/30/central-visayas-economy-grows-88-2014-421863
• Thursday, July 30, 2015

By Jeandie O. Galolo

THE economy of Central Visayas shot up by 8.8 percent in 2014 from the 7.4 percent growth in gross regional domestic product (GRDP) it posted in 2013, the latest data from the Philippine Statistics Authority showed.

The figure, although considerably high, remains below the 8.9 percent target aimed under the Central Visayas Updated Regional Development Plan, said National Economic and Development Authority (Neda) 7 Director Efren Carreon during the 2014 Economic Performance News Conference yesterday led by the at the Crown Regency Hotel. This was the first GRDP press conference held and done simultaneously across all other regions.

In terms of absolute value, Central Visayas’ GDP reached P465 billion, 54.6 percent of which was contributed by the services sector, 39.4 percent by the industry sector, and 6.0 percent by the agriculture/hunting/forestry/fishing (AHFF) sector.

PSA 7 Director Ariel E. Horendo said CV is the third top-performing GRDP in 2014, after Davao Region (Region 11), which posted a growth of 9.4 percent and Central Luzon at 9.0 percent.

Moreover, he said the region’s performance is higher than the national GDP recorded in 2014, which grew by only 6.1 percent.

Decline in agriculture

CV’s 2014 economy was fueled by the services and industry sectors, while agriculture or AHFF was left behind, posting a 2.6 percent decline from the other year’s performance, where it grew at a minimal rate of 0.3 percent.

Likewise, performance of the services sector declined, however slightly, from 6.9 percent to 6.6 percent. Industry, on the other hand, grew substantially, from 9.5 percent to 13.9 percent.

The contraction of agriculture’s performance is still attributed to the effects of the twin calamities in 2013--the 7.2-magnitude earthquake and super typhoon Yolanda. In addition, the El Niño phenomenon is seen to affect the region’s agricultural output this year and the following year.

“We have to give importance to agriculture because this is where poverty is highest. (Also), agriculture produces food (that all of us need),” Carreon said during the press conference.

Under the industry sector, construction recorded the biggest growth at 24.7 percent from the 2.2 percent growth in 2013, a reflection of the robust construction industry in the region, especially in Cebu and Bohol. This was followed by mining and quarrying (20.2 percent), manufacturing (10 percent) and electricity, gas and water supply (1.4 percent).

In terms of per capita income in the region, it grew from P59,211 in 2013 to P63, 351 in 2014, representing a seven percent growth.

Missing the goals

However, this is still short by P472 from the actual target of P63,823. The per capita income generally serves as an indicator of a country’s living standards.

Prospects for 2015 and 2016 GRDP for CV remain bright, according to Neda and PSA.

Even if Negros Oriental had to separate itself from the CV economy, economic officials believe the international events to be hosted in Cebu like the Asia Pacific Economic Cooperation meetings and the International Eucharistic Congress in 2016 will significantly boost the region’s economy, especially in the areas of retail, tourism, and transportation.

“Business, trade, and commerce will not be affected (with the creation of One Negros) because we are interconnected. What they have there, will reach us here,” said Carreon, although in terms of land area the region’s scope will diminish by 36 percent and population cut down by 1.2 million.

Right direction

Since 2010 up to 2014, Central Visayas’ economy performed at an average growth of nine percent. The highest posted performance was in 2010 when it attained a 12.5 percent growth in GRDP.

“The numbers tell us that we are moving in the right direction. We have reason to believe that Central Visayas economy will grow at a faster rate in 2015,” the Neda official said.

He also noted that tourism, retail trade, and IT-BPM industries will continue to exhibit “respectable” growth and will remain among the region’s important economic drivers.

Agriculture, though, has a lot of catching up to do. The Neda 7 has already come up with strategies including the prioritization of local agri-fishery development, and improvement of rural infrastructure, among other developments.

While others may regard the economic growth as does not affecting the low-income Filipinos, Carreon dismissed this claim, basing his argument on statistics.

Poverty incidence among families fell from 30.7 percent in 2006 to 25.7 percent. Moreover, the growth per capita income increased by seven percent from 2013 to 2014. This goes to show, according to Carreon, that the economic gains of the region and the whole country have made an impact.

Visayas growth

“If we don’t base our claims with data, these will just be speculations,” Carreon said at the sidelines of the press conference.

Overall, Central Visayas’s share to the total GDP of the country is the fourth highest among the 17 regions. Of the 6.1 percent national GDP growth recorded in 2014, Central Visayas contributed 0.6 percentage point. Ahead of Region 7 are the National Capital Region (2.1 percentage point), Calabarzon (0.9 percentage point), and Central Luzon (0.8 percentage point).

As for the Visyas island group, it maintained its growth of 5.6 percent last year. The share of the Visayas island group to the country’s economy decreased from 12.5 percent in 2013 to 12.4 percent last year. It contributed 0.7 percentage point to the country’s GDP growth in 2014.