National Economic Development Authority XI regional director Ma. Lourdes Lim reported in One Davao Virtual Presser recently the region’s 2020 socioeconomic performance and the initial estimate Gross Regional Domestic Product (GRDP) growth rate.
“In May 2020, we re-estimated our GRDP 2020 target at 3.4%. We still don’t have the full year estimate growth rate as the PSA will still release it later, however, the growth target is adjusted for the region because of the COVID19 impact. We are placing it at 3.4% based on economic losses reported by business establishments, forgone taxes, revenues, income of workers, and losses of tourist receipts”, Lim said.
The region recorded an average annual inflation rate of 1.7% last year as compared to an inflation rate of 2.5% in 2019.
Employment rate fell to 82.1% in the second quarter of 2020 but bounced back to 92% in the 3rd quarter and 93.2% in the fourth quarter.
Unemployment rate was highest in second quarter with 17.9% but workers recovered as unemployment rate figures recorded at 6.8% in the fourth quarter.
The Department of Labor and Employment recorded 1,087 establishments that reduced or retrenched workers since the start of the pandemic affecting 18,470 workers while 119 establishments permanently closed and affected 2,122 workers.
Top industries that reported retrenchment of workers and closure are the Administration and Support Service; Other Service Activities; and Accommodation and Food Service Activities.
The regional economic performance mirrored the national performance. In the recent Philippine Economic Performance reported by NEDA Secretary Karl Kendrick Chua, he said the Philippine economy contracted by 8.3% in the fourth quarter, bringing a full-year GDP contraction by 9.5%.
The report further showed that the Philippines has the lowest 2020 GDP growth rate among ASEAN economies following Thailand with a 6.1 contraction, Singapore with 5.8, and Malaysia with 5.3.
However, Lim shared that the Davao Region is expecting a better economic performance this year.
“The GRDP 2021 target is yet to be estimated on a full year basis. But with the re-opening of the economy starting July last year, we may expect our regional economy to rebound alongside the provision of economic stimulus packages under Bayanihan 2 and other upcoming legislative bills. We are hopefull that for 2021, we will be at the positive growth track.”
NEDA XI reported in its Development Outlook that process of basic commodities will remain low and stable. The inflation target of the BSP for 2021 is between 2-4%. Employment rates will also improve due to resumption of businesses but at lower levels than at the early part of 2020….. OIC Michael Manguhig RPN Dxkt Davao