Davao Region’s economy suffers slack in 2015

DAVAO CITY (MindaNews/29 July) – Davao Region’s economy slowed down in 2015 compared to its performance in 2014, a report from the Philippine Statistics Authority (PSA) showed.

During the 2015 Report on the Economic Performance of Davao Region at the Grand Regal Hotel Thursday, PSA 11 chief Ruben D. Abaro Jr. said the region’s gross regional domestic product (GRDP) stood at 7.9 percent. In 2014, the GDRP was 9.3 percent.

But the figure was higher than the region’s target of 7.5 percent, he noted.

National Economic Development Authority 11 director Maria Lourdes Lim explained that the region’s GRDP slowed down due to the deceleration of its three major sectors – agriculture, hunting, forestry and fishing sector; industry sector; and services sector.

The agriculture, hunting, forestry, and fishing sector saw a 1.4-percent growth rate in 2015, decelerating from 2014’s 2.6 percent.

The industry sector managed to grow at 11.6 percent, lower than the 14-percent performance in 2014, and the service sector slowed down to 7.4 percent from 8.5 percent in 2014.

Agriculture was expected to decelerate last year due to the El Niño phenomenon while more investors in industry and service sectors came in than in 2015.

“The 9.3 percent growth (2014) in energy and logistics was propelled by huge investments in electricity, gas, and water supply and logistics. That’s a tough act to follow,” Lim said.

The industry sector decelerated in 2015 with an 11.6-percent growth from 14 percent in 2014. Among its four sub-sectors – mining and quarrying, manufacturing, construction, and electricity, gas, and water supply – only manufacturing, which posted a 12.4-percent growth, fell short of exceeding its 2014 performance of 18.8 percent.

Meanwhile, the mining and quarrying sub-sector posted a 25.6-percent growth in 2015, higher by 5.6 percentage points compared to 2014 while construction posted a 7.9-percent growth, or 4 percentage points higher than 2014.

Electricity, gas, and water supply posted a 15.9-percent growth. In 2014, it tallied a 12.8-percent growth. 

The service sector slowed down to 7.4 percent in 2015 from 8.5 percent in 2014. Of all its sub-sectors, only transport, storage, and communication, with 9.4 percent growth in 2015, managed to outperform 2014 with 8.8 percent. T

Trade and repair of motor vehicles posted a 7.4-percent growth, decelerating by 1.3 percentage points from 2014’s 8.7 percent.

Financial intermediation posted a 5.5-percent growth, slowing down by 2.7 percentage points from 8.2 percent in 2014.

Real estate and renting posted 8.3 percent, lower by 2 percent than its 2014 performance; and public administration and defense/ security at 1.9 percent, down from its 2014’s showing of 7.8 percent. (Antonio L. Colina IV/MindaNews)