NEDA sees a brighter prospect of the region’s 2015 economic performance, getting closer to the target of five percent set under the Regional Development Plan.
“Economic growth may be below the target, but it is better than in 2014 given the massive infusion of investment and construction works. Yolanda assistance translates into more building and better roads and more jobs,” said NEDA Regional Director Bonifacio Uy.
The 2014 GRDP performance nosedived by 6.8 percent from a positive growth of 4.5 percent in 2013. Economic growth in Eastern Visayas – the poorest region in the country – suffered a 2.3 percent decline last year.
The goal of stepping up growth to 4 to 5 percent looks more achievable with remarkable improvement of the industry sector, which contributes 41 percent to the GRDP.
Citing the latest available data from the Philippine Statistics Authority (PSA), Uy said the value of first quarter export of the region rose to USD138.25 million in the first quarter of this year or nearly tripled than the USD35.01 million exports in the same period a year ago.
For importation, the total value increased to USD156.26 in the first quarter or nearly double than last year’s USD60.62 million.
The official sees a sustained growth of services sector, which is the second biggest contributor to GRDP (40.7 percent). In 2014, it is the only sector that recorded increase in 2014 at 3.6 percent.
“That’s possible if the reconstruction programs will be expanded, sustained and expedited. There are still many rehabilitation activities coming, which will generate more jobs due to higher demand of services,” he added.
Massive assistance from government agencies and non-government organizations to farming and fishing is expected to drive minimal growth in agriculture, hunting, forestry and fishing (AHFF) sectors.
The sector is still largely dependent on the recovery of coconut industry, which would take five to seven years to restore its output.
The construction sub-sector, both private and public constructions, is expected to rise because of the repair of roads, bridges, buildings and houses.
“An increase in public expenditure is expected because of the reconstruction and rehabilitation efforts to address the needs of the affected communities. Implementation of major infrastructure programs and projects will also contribute to the growth in government expenditure,” Uy explained.
Looking at the trend of GRDP growth rates before super typhoon “Yolanda” struck, the target for 2015 is ambitious, according to NEDA.
In 2008, the GRDP grew at 2 percent; in 2009, it contracted by 1.8 percent, then bounced back by 2.0 percent in 2010, and grew by 2.1 percent in 2011.
However, in 2012, the already crawling economy of the region turned for the worse when it contracted by negative 6.2 percent. In 2012, it was the only region in the country that encountered a negative growth.
Eastern Visayas has a very strategic location. It plays an important role in the country because it serves as the backbone of the entire Philippine archipelago. Owing to this location, the region is the principal gateway to northern and southern parts of the country, linking Luzon and Mindanao through the Philippine Nautical Highway.
A major component of the Nautical Highway is the roll-on roll-off (RORO) ports in Northern Samar and Southern Leyte. (PNA)
JMC/SARWELL Q. MENIANO
JMC/SARWELL Q. MENIANO
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