Services sector leads in economic production in Davao region, posts P111-B in 2005

by Prix D Banzon

Davao City (20 January) -- There is a shift to services sector in terms of economic production in the Davao region where the gross value added (GVA) of goods and services recorded about P111 billion in 2005. GVA is a component of the gross regional domestic product (GRDP).

National Economic and Development Administration (NEDA XI) Nicasio Angelo Agustin said the phenomenon showed the services sector had overtaken other leading sector like the industry sector with GVA at about P74 billion and agriculture coming in third with P56 billion.

However, he said this does not mean that agriculture is lagging behind because it is still the main anchor of the region in terms of exports.

He said what is good with the recent development with services leading in terms of production is because it has brought signs that the region is ready both for commercial and industrial services.

Agustin said the development should be looked at the industry shifting into the urban sector even as he said that the level of production by sector should be taken independently at hindi dapat na parating pantay-pantay.

Meanwhile Agustin reported that 2006 had good economic performance with investments registering a slight increase compared to its target.

But he said when they compared last year's investments to 2005 with P4 billion there was a sluggish growth where projects was down by 61.3 percent or a total of only P2.4 B on projects enrolled at the Board of Investments. He said if other businesses were accounted outside of BOI for the two years in review, it would only indicate a decrease of 25.1 percent.

He explained that there was an abnormal growth in the flow of investments in 2005 in the region because of one big-ticket project that involves the construction of a hydro power plant in Sta. Cruz, Davao del Sur.

"We also have seen a lot of investments in 2006 and we could say that the year was good," he said.

Meanwhile, he said that the production level of the region's major crops compared to the same period last year showed modest to significant increase. Talking of exports, he said banana still was the top export commodity comprising of 80 percent of the totals followed by coconut and pineapple. With the three crops for exports combined it comprises 94 percent of the total export of the region.

He said for the first semester of 2006, the total export receipts reached about $383 million representing a 75. % growth rate compared to the previous year. The region contributes six percent of the total exports of the country.

The region continued its strong trading ties with Japan, China and Korea (for bananas) as well as USA (coconut crude oil and activated carbon), he said. (PIA)