NEDA: Boost Key Drivers
CEBU, Philippines — Central Visayas, one of the country's largest regional economies, must continue to boost its key economic drivers to sustain growth momentum, the National Economic and Development Authority said.
Aside from sustaining growth drivers, the region must also work on new sources of growth, said NEDA chief and economic planning secretary Ernesto Pernia as he urged regional economies to prioritize hitting their medium-term development targets.
Central Visayas, being the fourth largest regional economy as of 2017, must take advantage of the potential of its strong economic sectors.
These, according to NEDA, include the seaweed, dried mangoes, furniture, the business process outsourcing (BPO), shipbuilding and tourism industries as highlighted in its regional development plan.
“To sustain growth momentum and build strong regional economies, we must increase competitiveness, innovativeness and resilience of industries and services,” Pernia said.
“We advocate strengthening support to the region’s growth drivers, as well as generating new growth drivers. This is alongside the push for infrastructure development to improve connectivity, productivity and technology adoption,” the country's chief economist said.
In 2017, Central Visayas saw a slower economic expansion at 5.1 percent but the region remained the country's fourth largest economy valued at P551 billion in 2017.
By 2022, the region is projected to grow 8.3-8.8 percent based on its Regional Development Plan.
The 2017 expansion was slower than the 8.6 percent gross regional domestic product (GRDP) growth in 2016.
This year the region targets to grow by 6.9-7.4 percent.
The services sector — which comprises the region's main growth drivers tourism, BPO, IT, and trade, among others — continued to grow and still sees positive prospects this year.
Services grew 6.3 percent and accounted for 56.3 percent of the regional economy.
The agriculture sector also made a big rebound in 2017, growing 7 percent while the industry sector grew slower by 3 percent.
In particular, economic prospects for Cebu, the region's economic center, remain positive given a number of ongoing construction projects by private developers.
At the central business districts of Cebu alone, there are several construction projects at the Cebu IT Park and Cebu Business Park.
Moreover, most positive about growth is the tourism industry which is expected to lead growth in the regional economy this year, following the opening of Mactan-Cebu International Airport Terminal 2.
Coming along with the growth in tourism is retail. The sector is also expected to see growth this year but may have to brace for stiffer competition from online retailers.
Furthermore, the IT-BPO sector is still projected to produce most jobs in the region.
KPO, which offers high-value services beyond the voice segment, is likewise expected to grow at a faster pace.
Furthermore, among the big-ticket projects in the pipeline are the New Cebu International Container Port and the third bridge linking Cebu City and Cordova town, which has already started construction last July.
Construction for the Metro Cebu Expressway is also expected to start next year and a fourth mainland Cebu-Mactan Island bridge is now on a planning stage. (FREEMAN)