NorMin economy posts 5.9 percent growth in 2017

Apr 28, 2018

by Richardson T. Cua, NEDA-X

 

CAGAYAN DE ORO CITY, Philippines (April 26, 2018) – The region’s economy logged a 5.9 percent growth rate in 2017, the Philippine Statistics Authority (PSA) reported on Thursday.

The 3 x 55 MW Balingasag TPP of Minergy Coal Corporation in Balingasag, Misamis Oriental was among the electricity, gas & water industry sub-sector which grew fastest in 2017 (Elex India)

 

The expansion was at a pace slower than in 2016 on drags from construction and trade subsectors, offsetting gains in agriculture, electricity, gas and water supply (EGW), and transport, communication and storage (TCS) sub-sectors, among others.

PSA-X Regional Director Ronaldo C. Taghap said that the services sector contributed 2.8 percentage points to the total Gross Regional Domestic Product (GRDP) growth; industry sector, 2.1 percentage points; and agriculture sector, 1.0 percentage point.

The services sector remained the biggest contributor to the GRDP, accounting for 43.4 percent of the region’s total output worth P 323 billion at constant 2000 prices.

The services sector remained as the biggest contributor to the GRDP, accounting for 43.4 percent of the region’s total output worth P 323 billion at constant 2000 prices.

 

For his part, NEDA-X Director Leon M. Dacanay, Jr. said that the slowdown was expected in a post-election year even as growth was well within the target range of 5.1-6.7 percent for 2017.

He noted, however, that the steep decline in trade (from 10.4 percent growth in 2016 to 5.9 percent growth in 2017) may have been flatter, or growth may have picked-up, given trade and customs data from official sources showing substantial increases.


He also made reservations on the steep decline in the construction sub-sector citing huge private investments in infrastructure and related activities as monitored by the Department of Trade and Industry (DTI-X).

 

Despite massive private sector construction like the Mesaverte project Cagayan de Oro city, the Phil Statistics Authority reported a substantial contraction in the construction sector in Region X for


Dacanay requested the PSA to review the estimates for these sub-sectors to have a firmer assessment of the region’s economic performance.


“Nevertheless, I must say again that the region is on track in meeting its growth targets. We look forward to a more bullish year as we move to hit our 2018 target band of 5.5-7.1 percent, and shift to a higher growth trajectory”, he said.

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