NEDA-10 Forecast: Northern Mindanao’s economy can grow 8.2 percent by 2022

Jul 26, 2017

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The National Economic Development Authority in Region 10 expects Northern Mindanao to be reaching for double digit growth by 2022.

“For the region, the economy is expected to grow by 5.8-7.6 percent over the next five, six years, and to as high by 8.2 percent by 2022,” said NEDA-10 Regional Director Leon M. Dacanay Jr. during a press conference following the regional unveiling of the Philippine Development Plan and Northern Mindanao Regional Development Plan 2017-2022 last July 18 at a local hotel.

Presentation of the Aksyon Para Ambisyon PDP RDP Northern Mindanao 2017-2022 (CIO)

Presentation of the Aksyon Para Ambisyon PDP RDP Northern Mindanao 2017-2022 (CIO)

 

“Industry and services shall stay as growth drivers, while agriculture shall remain as the backbone of the region’s economic activities,” Dacanay added.

The Northern Mindanao Regional Development Plan for 2017-2022 outlines major strategic plans and priorities that address poverty, and increased incomes to create resilient and sustainable communities, and build vibrant industries and businesses.

“The region also aims to reduce poverty incidence among families to as low as 22% by 2022,” Dacanay said. “The bolder objective is to significantly improve poverty situation and agriculture, in geographically isolated and conflict-affected areas, where many of the poor are found.  Achieving this objective requires the region to leverage unemployment and aim at reducing underemployment rate to below 20 percent.”

Aside from increasing access to jobs, the quality of jobs has to be adequate, to reduce income poverty, particularly among farmers and unskilled workers, he added.

The GATEWAY

Socioeconomic Planning Secretary and NEDA Director General Ernesto M. Pernia acknowledged how the regional captured the strategic objective as GATEWAY, supportive of the present administration’s 3 pillars of development at reducing inequality (Pagbabago), increasing potential growth (Patuloy na Pag-Unlad), and enhancing the social fabric (Malasakit).

Cagayan de Oro's Macabalan Port plays a key role in attaining Northern Mindanao's vision to be a GATEWAY under the Regional Development Plan for 2017-2022 (PPA Photo)

Cagayan de Oro’s Macabalan Port plays a key role in attaining Northern Mindanao’s vision to be a GATEWAY under the Regional Development Plan for 2017-2022 (PPA Photo)

 

“This is expressed in the region’s vision to be a major gateway and leading industrial core and trade center in Southern Philippines. To realize this vision, Northern Mindanao will implement strategic interventions, coined as GATEWAY,” Pernia said.

Pernia explained the letters of the acronym: G-good governance, peace and order; A-access, logistics and other infrastructure; T- trade, tourism and industry; E-environment and sustainable development; W- well being and improved welfare; A- agriculture and fisheries; Y – youth empowerment and education.

The foundation for inclusive and sustainable development such as peace and security, strategic infrastructure, resilience to build-up and economic integrity are likewise articulated in the plan, he added.

The People’s Plan

Pernia stressed in his keynote address during the regional launch how the PDP/RDP 2017-2022 was crafted through intensive, multi-sectoral, multi-level consultations to ensure it is the people’s plan.

The RDP prioritizes poverty allevaitiaon for marginal income workers in isolated and coflict-prone areas like this subsistance fisherman (photo by Froilan Gallardo)

The RDP prioritizes poverty allevaitiaon for marginal income workers in isolated and coflict-prone areas like this subsistance fisherman (photo by Froilan Gallardo)

 

“This is not the President’s plan, this is not NEDA’s plan, nor is it Congress plan,” he noted. “This is your plan, the people’s plan.”

Pernia explained how the interventions articulated in the RDP, supported by science, technology and innovation, will firmly drive the development of the region.

“While some may question the region’s capability to attain this goal, it is important to note that the region contributes an average of four percent to the country’s gross domestic product, and about 26 percent to Mindanao’s GRDP,” he said. “The region also has the highest contribution to agriculture, hunting, forestry, and fishing in Mindanao.”

A Good Place to Start

The NEDA Chief expressed optimism that the PDP and RDP are off to a good start with the encouraging macro indicators of the country’s present economic situation.

With its round-the-clock, all weather capability, the Laguindingan Airport aims to play a bigger role in Northern Mindanao's economic growth (photo by Rich Neri Concepcion)

With its round-the-clock, all weather capability, the Laguindingan Airport aims to play a bigger role in Northern Mindanao’s economic growth (photo by Rich Neri Concepcion)

 

“Our country’s economic trajectory has been on a sharp, consistent uptrend for the past 3 decades and a half. It is undergoing structural transformation or qualitative change,” Pernia explained. “No longer just driven by consumption, but increasingly driven by investment. Not just driven by the service sector, but increasingly driven by industry/manufacturing.”

Pernia disclosed that total factor productivity, which is a measure of the economy’s ability to grow, based on a better organization of capital and labor, with technology (I.e., total factor productivity) is increasing sharply and is now the highest in the ASEAN.

“Altogether, these three messages suggest strongly our economic growth is sustainable. It will no longer be a flash in the pan, or just be a boom-bust syndrome that we used to have earlier,” he noted.

 “We know that Region X has traversed higher growth. We also know the continued challenge to make this growth inclusive and sustainable,” Dacanay added.

 

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