First quarter 2021: Central Visayas industry sector contracts by 18.3%

CEBU, Philippines —  Central Visayas’ industry sector contracted by 18.3 percent in the first quarter of 2021 led by the construction sector, which shrank by 36.4 percent.

According to the latest report released by the National Economic and Development Authority (NEDA-7), aside from the 18.3 percent decline in the industry sector, the service group also contracted by 7.9 percent.

In Services, double-digit contractions were noted in five subsectors, namely: accommodation and food service activities associated with the tourism industry (-43.4 percent) ; transportation and storage (-37.4 percent); human health and social work (-20.7 percent); real estate and ownership of dwellings (-11.9 percent); and other services (-38.8 percent).

Only agriculture grew or posted a positive growth rate of 4.2 percent, and three subsectors in services—the financial and insurance (9.3 percent); information and communication (2.7 percent); and public administration, defense and compulsory social activities (1.1 percent).

NEDA report showed that the services sector continued to account for a greater share or 68 percent of the region’s GRDP (gross regional domestic product) in 2020, followed by Industry.

Agriculture’s share of 7.4 percent was up from 6.4 percent in 2019.

Despite the contraction of the GRDP in 2020, Central Visayas remains as the country’s fourth largest regional economy and fourth biggest contributor to the Philippines’ GDP, after NCR which accounts for a third of the GDP, CALABARZON, and Central Luzon. Central Visayas’ GRDP in 2020 was valued at Php1.13 trillion.

On inflation, the first five months of 2021 was marked by rising inflation rates although they remained below or just within the low end government target of 2.0 percent.

Average inflation rate of the region in the first quarter of 2021 was 1.0 percent, significantly lower than the 2.7 percent inflation registered in the first quarter of 2020.