Services sector buoys Central Visayas economy in 2014

CEBU, Philippines – Despite a growth slowdown, the services sector still dominated the Central Visayas economy in 2014, accounting for more than half of the regional economy’s P464.7 billion worth.

Official latest data from the Philippine Statistics Authority (PSA) showed the region’s services sector which grew 6.6 percent in 2014, down from 6.9 percent in 2013, was worth P253.7 billion last year.

The trade and repair of cars and of consumer goods were the sub-sectors under services that posted a big contribution to the sector at P70.3 billion.

The sub-sectors that followed in terms of their contribution value were: other services (P51 billion); real estate and business activities (P50.8 billion); transport, storage and communication (P34.7 billion); financial services (33.4 billion); and public administration and defense and social security (13.4 billion).

The services sector remained the biggest contributor last year to the region’s economy at 54.6 percent, although it was slightly lower than 55.7 percent  in 2013.

On the other hand, the industry sector which grew 13.9 percent last year, up from 9.5 percent in 2013, was worth P183.2 billion in 2014. The growth mainly came from manufacturing and construction sub-sectors.

Efren Carreon, National Economic and Development Authority (NEDA) regional director, said the continued growth of construction could be attributed to region’s strong and sustained economic performance.

“Non-residential construction was triggered by the growing demand for office space by the services sector, particularly the business process outsourcing and tourism industry,” Carreon noted.

The industry sector and agriculture, hunting, forestry and fishing (AHFF) contributed 39.4 percent and 6 percent, respectively, to the regional economy last year.

Central Visayas’ gross regional domestic product (GRDP) growth last year was driven by industrial expansion and sustained contribution from the services sector. The agriculture sector’s growth contracted last year, pulling down regional growth by 0.2 percentage point.

CV posted an 8.8 percent GRDP last year, up from 7.4 percent in 2013, ranking the third fastest growing region in the Philippines after Central Luzon (9%) and Davao Region (9.4%).

GRDP is the total value of goods and services produced in a region and is used as basis for policy and business decisions.

Carreon has projected that CV’s economy will grow at a faster rate this year, dismissing claims that the separation of Negros Oriental will affect the region’s growth. NEDA is targeting a GRDP growth rate of between 9.7-11.9 percent for CV this year.

The NEDA official pointed out the business, trade and commerce activities among Cebu, Bohol, Siquijor and Negros Oriental will continue.

He, however, claimed that Region 7’s land area will decrease by 36 percent and population by 1.2 million.

On May 29, President Benigno Aquino III signed Executive Order 183 declaring the Negros Island Region which comprises all cities, municipalities and barangays of Negros Occidental (formerly part of Region 6) and Negros Oriental (previously part of Region 7).