Davao Region sees 8.7% growth by 2016

Subscribe Now December 18, 2013 at 10:59am

The region's economic planners projected 8.7% growth by 2016 as they took note of encouraging signs in the local economy, despite the damage exacted by typhoon Pablo in several provinces last year.

Maria Lourdes D. Lim, regional chief of the National Economic and Development Authority (NEDA), said the growth projection is part of the updated Davao Regional Development Plan, which contains specific actions to be taken between next year and 2016.

Ms. Lim said the region has been growing faster economically, even as it expects 5.6% growth this year, compared with last year’s 7.4%. The expected reduction is largely due to the typhoon that devastated the banana and coconut plantations of Compostela Valley and Davao Oriental, respectively, in December 2012.

In Compostela Valley, for example, Gov. Arturo T. Uy said that the typhoon cost a banana firm about 8,000 hectares that had been ready for harvest. However, Mr. Uy said that the company and several others, including small growers, have already rehabilitated their farms.

Still, the impact of the typhoon on the coconut subsector has prompted the regional office of the Agriculture department to project flat industry performance this year as Davao Oriental lost about 6 million coconut trees. The province is considered the country’s top coconut producer.

Based on the updated development plan, other regional industries will continue to register growth despite near-term problems in the sub-sectors most hurt by Pablo. Among these industries are information and communications technology (ICT), property development (including construction) and manufacturing.

The plan also noted that the rehabilitation efforts in typhoon-devastated areas will also contribute to the growth. Construction is a major growth inducer since its inputs can be traced to over a dozen industries.

Source: bworldonline.com

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