Davao Region’s economy grows at slow pace

 Davao Region’s economy remained growing in 2011 but at a much slower pace of 4.1 percent than the 5.0 percent rate in 2010 due to slowdowns of the industry and the service sectors.

The region’s gross regional domestic product (GRDP) in 2011 managed to achieve P8.9 billion growth from P215.9 billion in 2010 to P224.8 billion in 2011 as shown by data of the National  Statistical Coordination Board (NSCB) XI.

NSCB XI attributed the slow growth of Davao Region’s economy to the deceleration of services sector from 7.4 percent in 2010 to only 6.4 percent in 2011.

The growth deceleration of  the industry sector from 4.2 percent in 2010 to only 2.5 percent in 2011 also pulled down the overall growth of  the Davao Region’s GRDP.

 NSCB XI noted a slight growth of  1 percent from 0.2 percent of the agri, forestry hunting and fishing sector but such growth failed to make up for  reduction of the services and  the industry sectors which  accounted 51.6 percent and 29.5 percent, respectively, of the GRDP of the Davao Region.

 NSCB XI explained in a statement that the services sector consequently slowed down as a result of the decelerated growth pace of its sub-sectors in trade and repair of motor vehicles, motorcycles, personal and household goods; in financial intermediation; in public administration and defense; and in compulsory social security.

Trade and repair of motor vehicles, motorcycles, personal and household goods decelerated from 10.2 percent in 2010 to 4.5 percent in 2011; financial intermediation likewise slowed down from 6.1 percent to 4.6 percent in 2011 due to the decelerations in  banks and other financial institutions while  the public administration and defense, compulsory social security sub-sector posted a negative 0.6 percent reduction from 7.9 percent growth in 2010.

Still under the service sector, the transport, storage and communication (TSC)  accelerated by 8.6 percent in 2011 from 2.7 percent in 2010 as all its subsectors, except water transport, favorably grew based on year-on-year comparison.

NSCB also noted faster rates of  the real estate, renting and business activities or RERBA sector which growth accelerated  from 9.2 percent to 13.0 percent, and other services from 4.9 percent to 6.7 percent.

 The industry sector also grew in 2011 at slower pace from 4.2 percent in 2010 to 2.5 percent as a consequence of the decline in economic performance of its construction,  mining and quarrying, and electricity and water supply sub-sectors.

The construction sub-sector plunged to negative 5.4 percent from 10.7 percent in 2010 due  to  the reduction of public construction activities that the “notable private constructions in the Davao Region” failed to offset.

 NSCB XI said that  the mining and quarrying sector sank deeper from a negative 1.9 percent in 2010 to a negative 23.4 percent in 2011 brought about by the continuous decline in the region’s gold production.

The Electricity and water  sub-sector  performance also  tumbled from 9.6 percent in 2010 to a negative 0.4 percent due to the drastic decline in the region’s electricity generation, NSCB said.

On the other hand, the agriculture, hunting, forestry and fishing (AHFF)sector posted what NSCB XI cited as a “sluggish growth” from 0.2 percent in 2010 to only 1 percent in 2011.

The growth was due to the improvements posted by the production of palay, sugarcane, banana, pineapple, livestock and poultry.

NSCB noted these commodities to have a combined percentage contribution of about 70 percent to the total agriculture sector in the region.  (NSCB XI/ PIA XI/ Jeanevive D. Abangan)