DAVAO CITY The Davao region, at 5.0 percent gross regional domestic product (GRDP) growth, ranked as the second highest growing economy among the regions in Mindanao, next to Zamboanga peninsula with a 7.2 percent GRDP growth.
Southern Mindanao contributed 26.1 percent to the aggregate GDP of Mindanao, second to that of the Northern Mindanao Region at 27.1 percentage share. The 5.0 percent growth of Davao Region in 2005 was a slowdown from the 6.5 percent growth achieved in 2004. The accelerated growth of the industry sector in Davao Region at 8.1 percent cushioned the sluggish growth in agriculture, fishery and forestry (AFF) and the slowdown in the services sector in 2005, at 2.7 percent and 4.2 percent, respectively.
AFF, which accounted for 27.3 percent of the regions economy, grew by 2.7 percent in 2005 from 7.2 percent in 2004. This was brought about by the slowdown in palay, coconut and sugarcane production. Fishery also slowed down due to the negative growth in aquaculture fishing. The sudden drop in forestry subsector from 48.0 percent growth in 2004 to negative 1.4 percent in 2005 contributed to the slow growth of AFF.
The industry sector, which accounted for 32.0 percent of the regions economy, accelerated from 4.6 percent growth in 2004 to 8.1 percent growth in 2005. This was brought about by the growth in all subsectors. The growth of mining and quarrying surged by 7.9 percent in 2005 from negative 8.4 percent in 2004. This was mainly due to the impressive growth in gold mining production.
Manufacturing accelerated from 7.5 percent in 2004 to 9.3 percent in 2005. With the increase in sales of electric power, electricity and water substantially increased by 8.9 percent in 2005. Construction slowed down from 6.5 percent to 5.3 percent in 2005 brought about by the sluggish growth in private construction.
The services sector, with a 40.7 percent share of the regions economy, decelerated from 7.5 percent in 2004 to 4.2 percent in 2005. All the subsectors of services except finance and government services slowed down in 2005. TCS decelerated from 17.3 percent in 2004 to 7.4 percent in 2005.
This was due to the decline in the growth of air and water transport subsectors. Trade slowed down from 7.4 percent in 2004 to 4.3 percent in 2005 mainly because of the decelerated growth in retail trade. Private services decelerated to 3.5 percent because of the slow growth in all of its subsectors, particularly the education, medical, and hotel and restaurant services.
Meanwhile, ODRE slowed down to 2.7 percent in 2005 as a result of the slow growth in residential building construction.
The GRDP measures the goods and services produced in each of the geo-political regions of the country. It provides for an analysis of the regional distribution of the countrys GDP, the industries and factors that contribute to the regional economies, and the pace at which these economies are moving on an annual basis. The GRDP is compiled on an annual basis by the National Statistical Coordination Board (NSCB). (Philippine Information Agency)
