Davao Region’s Economy Continues to Improve
NEDA XI Director Nicasio Angelo J. Agustin reported that the economy of the Davao Region withstood the adverse impact of a sharp rise in inflation rate and soaring oil prices during the first 6 months of 2008.
Director Agustin delivered his regional economic performance report to the Regional Development Council (RDC) XI during the Council’s 3rd regular quarterly meeting held in Nabunturan, Compostela Valley Province last October 7, 2008. The meeting was hosted by Governor Arturo T. Uy of Compostela Valley. Also present during the meeting were RDC XI Chair Vicente T. Lao; Governor Douglas Ra. Cagas of Davao del Sur, who is also the Regional Peace and Order Chair; Governor Corazon N. Malanyaon of Davao Oriental; Mayor Rey T. Uy of Tagum City; Mayor Macario Humol of Nabunturan; other local chief executives; regional directors of line agencies; and representatives of region’s private sector.
In his report, Director Agustin, who is also the Vice-Chairperson of RDC XI, cited that the region’s major agricultural products, such as banana and coconut, registered improved production levels by 15 percent and 3 percent, respectively, despite a series of oil price hikes and the regression of peso against the US dollar. He said that this production increase pushed export income of bananas to P263 million and that of coconuts to P31 million during the first semester of 2008. Director Agustin said that the production increase was mainly due to the expansion of planting areas and increased technical assistance by the Department of Agriculture (DA).
Director Agustin, however, said that some of the region’s industrial crops, such as coffee and cacao, experienced lower production as many old trees were cut down to ready some crop lands for rehabilitation. The region’s grains output remain flat as the increase in corn production was offset by drop in palay production. Director Agustin said that the profitability of banana production has lead many farmers to shift to banana cultivation, thus reducing the planting areas of other crops.
He also revealed that the region’s fish production increased by 3 percent as lower municipal fishing production was compensated by a huge jump in aquaculture output. The region’s tourism industry also enjoyed another profitable first semester as visitor arrivals rose by 8 percent and tourist receipts reached P5 million.
The region’s employment rate also continued to improve as employment rate inched up to 93.4 percent despite an increase in labor cost as minimum wage grew by an average of 7 percent and a sharp rise of inflation rate to more than 8 percent during the first 6 months of the year.
Director Agustin also said that upward inflationary pressures did not deter the launching of posh mid-rise condominiums and subdivisions in Davao City and the Island Garden City of Samal. He added that despite decline in capital infusion in the region, investments in the region remain high and this is highlighted by the ongoing construction of the Robinson’s Gateway and the forthcoming establishment of another huge commercial establishment by the Ayala group in Davao City.
The RDC XI Vice-chair also highlighted the completion of 315 government infrastructure projects costing P802 million. Most of these projects were construction and rehabilitation of roads, bridges and ports. He said that 15 of these projects cost at least P10 million, the largest of which is the completion of P250-million Governor Generoso bride project in Davao City.
Although some of the internal and external deterring factors, including a rising crime rate, continue to hound the region, Director Agustin said that with the initiatives of the region’s local leaders and support of the national government, non-government organizations and the private sector, he is hopeful that the Davao Region economy will continue to perform well in the second half of the year.
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