NEDA7: CenVis Still 4th Largest Economy

Central Visayas remains the fourth largest economy in the country despite the dip in the annual economic performance last year from 7.8 percent Gross Regional Domestic Product (GRDP) growth in 2014 to 4.8 percent in 2015.

Efren Carreon, regional director of the National Economic and Development Authority (NEDA-7), said the GRDP growth of Central Visayas is still “very respectable” given the difficult external environment that affected the demand for our exports, the onset of El Niño, and the challenges in government spending.

Carreon said the growth may not be substantial but at least the economy of the region registered positive growth but at a slower rate.

The Philippine Statistics Authority (PSA-7) today presented the 2015 Report on the Central Visayas Economy during a news conference that showed a decline in the GRDP growth from 2014 to 2015.

The Services Sector emerged as the top industry with 57.2 percent economic output to the 2015 GRDP followed by the Industry Sector at 36.9 percent and Agriculture, Hunting, Forestry and Fishing (AHFF) at 5.9 percent.

The Services Sector grew from 6.6 percent in 2014 to 8.9 percent in 2015 while the Industry Sector decline from 11.3 percent in 2014 to negative 0.5 percent last year.

Based on the presentation, the AHFF rebounded from negative 1.9 percent in 2014 to 2.3 percent in 2015 as Agriculture and Forestry grew faster from 0.6 percent to 2.8 percent and Fishing from negative 14.7 percent to negative 0.7 percent.

“Central Visayas ranked 5th nationwide in 2014 in terms of GRDP growth but has slid down to 10th place last year with the 4.8 percent GRDP growth,” said Director Ronaldo Taghap of PSA-7.

Taghap said the Bicol Region recorded the highest GRDP growth at 8.4 percent followed by Western Visayas at 8.3 percent and third spot is Davao with 7.9 percent.

Central Visayas, however, contributed to 6.4 percent to the national GDP growth in 2015 and ranked fourth in terms of regional share, said Taghap.

The top three regions cited that contributed to the national GDP are the National Capital Region, Calabarzon, and the Central Luzon Region.

But Carreon said despite the decline of the region’s annual economic performance last year, the average growth rate of Central Visayas at 8.1 percent in the last six years is considered the highest ever recorded and even higher than the national average of 6.2 percent.

The NEDA-7 chief expressed optimism the economic slowdown is just temporary and that the region’s economy will rebound citing the growth in tourist arrivals and increased employment in the Business Process Outsourcing (BPO) sector.

“Tourist arrivals in Central Visayas grew by 14 percent from 2014 to 2015 and even exceeded the target of 4.4 million foreign tourist arrivals to the actual figure of 4.6 million last year,” said Carreon.

The BPO sector is also employing over 100,000 bringing in P2 billion revenues per month, added Carreon.

As for low demand for CV export products, Carreon said there is a need to diversify local products and scout for new markets while developing our new graduates by providing the right skills as the Services sector can reach higher heights of growth.

The news conference was done simultaneously by all PSA regions nationwide as mandated by law to estimate and disseminate the GRDP on annual basis during the last Thursday of July each year.(rmn/fcr/PIA-7)