DAVAO CITY (MindaNews/ 26 Jan) — The Davao Region is expected to sustain its strong economic performance as its gross regional domestic product is projected to grow between 9.5% and 10.5% in 2018, National Economic Development Authority (NEDA) 11 director Maria Lourdes Lim said.
Lim told Kapihan sa PIA on Friday that the full year on the region’s GRDP would come out April or May this year.
The Philippine Statistics Authority (PSA) reported on Thursday that the gross domestic product of the Philippines grew by 6.2% for the entire 2018. The country’s GDP growth, the government’s economic managers claimed, “cements the Philippines’ standing as one of the fastest-growing economies in Asia.”
Lim said Davao Region, composed of the provinces of Davao del Norte, Davao del Sur, Compostela Valley, Davao Oriental, Davao Occidental, Compostela Valley, and the cities of Davao, Tagum, Panabo, Samal, Digos and Mati contributed largely to the country’s GDP growth.
She said last year’s rising inflation, peaking at 7.9% in September 2018, will bear “insignificant impact” on the Davao’s economic growth, owing to the stronger growth performance in the tourism, manufacturing, construction, and industry sectors.
She said the high inflation was driven by high oil prices in the global market, affecting production and transportation costs, and supply shocks including shortages in rice and fish.
“As a matter of fact, investments are still strong in terms of real property, even housing construction, private construction activities in the region. This will further boost our growth performance last year,” she said.
Inflation showed signs of tapering off beginning October 2018 when inflation rate of the region lowered to 7.8%. The region’s inflation further went down to 6.3% in November and 5.3% in December.
“We can only surmise that from a very strong performance in 2017 — 10.9% — the second fastest growth in terms of GRDP level throughout the country, we can still sustain that strong performance in 2018,” she said.
Lim said the election season will also ramp up the region’s growth in 2019 on the back of a stronger consumption and massive demand for services in the printing, advertising, and media.
She said they are updating its midterm plan this year and they might increase its growth target for 2019 based “on the signals we are receiving from investors.” (Antonio L. Colina IV / MindaNews)