Joselito Basilio, Bangko Sentral ng Pilipinas acting deputy director of economic research, discusses the state of the Philippine economy during yesterday’s forum at the Cebu City Sports Club.
Cris Evert Lato-Ruffolo
Central Visayas has highest growth rate in 2016 among all other regions in country
The Central Visayas region contributes to the strong narrative of the Philippines as a resilient nation with a gross regional domestic product (GRDP) growth of 7.5 percent in 2016, which is higher than the national GDP of 6.8 percent.
Joselito R. Basilio, acting deputy director of the Department of Economic Research of the Bangko Sentral ng Pilipinas (BSP), said the region’s five-year GDP growth in the sectors of agriculture/fishing/forestry, industry and services fuel the continued growth of the Central Visayas economy.
This is the highest average GRDP growth (7.5 percent) among all regions in the country based on the Regional Development Plan 2011–2016 score card.
“More people will think twice about going out of Cebu to work as the opportunities are available here,” said Basilio.
Cebu is the home of many business process outsourcing companies which is dominated by young professionals who are between the ages of 20 and 25.
National Economic and Development Authority Central Visayas Director Efren Carreon said the region’s performance is higher than the national GDP, which was at 6.8 percent in 2016.
Central Visayas is followed by Caraga and Davao (7.4 percent), Central Luzon (7.2 percent) and National Capital Region (6.6 percent).
The agriculture sector of the region, however, experienced a slowdown in 2015 because of its sensitivity to climate change and natural disasters.
Carreon noted that disasters can negate previous gains and even push development growth strategies.
Average unemployment rate in Region 7 between 2011 and 2015 is at 6.5 percent. However, underemployment is at 18.4 percent.
“This means that job mismatch is happening as people who already working are still looking for other jobs (that will match their skills or will pay them more given their skills),” said Carreon.
At the heels of implementing the 2017–2022 regional development plan, Carreon noted that Central Visayas is faced with the criticism that benefits of economic growth is not felt on the ground or among people in the grassroots level.
“Economic growth is necessary but not sufficient for poverty reduction. More needs to be done to achieve inclusivity,” he said.
But there are several rooms for growth and Carreon said Central Visayas is in the best position to lead opportunities for development.
BSP’s Basilio said the Philippines’ anchors of resilience are on sound and stable banking system, healthy external position and sufficient buffers, strong fiscal position and track record reforms.
“We are expected to remain resilient (in the face of external and unexpected challenges) … have enough remittances and the fundamentals are in place that will help us face these challenges,” said Basilio.