CAGAYAN DE ORO CITY (PIA)--Despite northern Mindanao’s Growth Domestic Product (GRDP) decline of 5.2 percent in 2020 from registered 5.6 percent growth in 2019, the National Economic Development Authority (NEDA) official said it is not that bad since the region holds a diversified economy and investments continue to come and create jobs.
During the 2018-2020 Provincial Product Accounts (PPA) Regional Data Dissemination Forum hosted by the Philippine Statistics Authority (PSA), December 13, at Mallberry Suites, here, NEDA Regional Director Mylah Faye Aurora Cariño said the contraction of the region is not too big with growth rate average of 6.4% for the past 20 years, declined to 5.4% during pandemic.
“Our contraction is not as bad as we have over 37,000 establishments recorded in 2019, with 16% affected. Investments continue to come in the region and these investments created jobs, of about 35,000. We are just hoping that those who lost their jobs are also the ones who gained back their jobs today,” she said.
Restrictions and quarantine measures affected businesses, especially in the early part of the pandemic, the director shared.
“We had to allow health systems capacity to improve. We had to scale down,” she said.
Based on result of the PPA, major contributors to the decline of the GRDP were: City of Cagayan de Oro pulling down the GRDP growth by 2.2 percentage; Province of Misamis Oriental by -2.0 percentage points and province of Misamis Occidental by 0.8 percentage. Only the province of Bukidnon and City of Iligan contributed positively with 0.3 percentage point and 0.1 percentage point respectively.
In Cagayan de Oro, services (accommodation and food service activities) posted the largest decline of 9.4 percent followed by industry (construction and mining and quarrying) which contracted by 3.8 percent.
In 2019, the city’s economy grew by 8.3 percent but declined by 8.0 percent in 2020.
In terms of performance for services, Cagayan de Oro City has the biggest average share of 37.9 percent in the region. This is followed by the Province of Misamis Occidental and Bukidnon at 18.0 percent and 15.4 percent respectively.
On the share of each province or highly urbanized city to the whole industry of Region 10, Misamis Oriental contributes the largest three-year average share of 28.7 percent. Cagayan de Oro City and Bukidnon followed by Misamis Oriental with three year average shares of 25.7 percent and 17.7 percent respectively.
For agriculture, forestry and fishing, Bukidnon records the largest three year average share of 64.1 percent followed by Lanao del Norte with 14.2 percent and Misamis Oriental, 11.2 percent.
Now that the local economic accounts are available, Cariño said the next challenge is to properly evaluate and interpret these numbers to develop more informed and responsive economic policies.
Through the PPAs she said, “We will be able to determine whether local economies support regional and local development thrust and if their efforts at the local level, build up their respective comparative advantages of the provinces and highly urbanized cities.”
Most local economies mirrored regional growth contraction in 2020.
“In the region, we were able to somehow mitigate COVID because we had the lowest contraction among Mindanao regions,” she said. (JMOR/PIA-10)