CAGAYAN DE ORO CITY, May 17 --- Northern Mindanao’s economy expanded by 7.6 percent in 2016, faster than the economic growth of 5.7 percent in 2015.
The acceleration was due to the improved performance of the Service and Industry sectors, according to the Philippine Statistics Authority (PSA) Regional Office 10.
Services grew by 8.3 percent in 2016, higher than the 7.5 percent growth in the previous year. Trade, which accounted for the biggest share in the total output of Services, expanded at a faster rate of 10.0 percent compared with the growth of 6.6 percent in the previous year. Such faster expansion was due to boost in retail trade.
Industry also expanded at a faster rate of 10.3 percent compared with the 4.8 percent growth in the previous year. All of its subsectors except EGWS contributed to the faster expansion in the Industry. Manufacturing, which accounted the biggest chunk of the total output in the Industry sector, grew faster by 5.8 percent compared with the 3.2 percent growth in the previous year. This improvement was attributed to the increase in food and beverage industries.
Construction showed an upsurge of 29.6 percent compared with the recorded growth of 13.1 percent in the previous year fueled by both the public and private construction.
Likewise, Mining & Quarrying further expanded to 16.0 percent, higher than the 15.2 percent growth in the previous year. EGWS, on the other hand, contracted by 0.5 percent due to the decline in electricity generation.
Meanwhile, AHFF increased at a slower rate of 2.4 percent compared with the 3.9 percent growth in the previous year. Agriculture and forestry slowed down recording a growth of 2.2 percent compared with the 2.8 percent growth in the previous year. Fishing also decelerated to 3.6 percent compared with the recorded growth of 11.7 percent in the previous year. This was driven by the lower increase in tiger prawn production in 2016.
The economy of Region 10 is predominantly services based. Services accounted for 43.1 percent of the region’s total output, followed by Industry at 35.1 percent and AHFF at 21.9 percent. The percent shares of Services and Industry to the total economy of the region increased while AHFF decreased.
Services were the top contributor to the economic growth of Northern Mindanao in 2016 contributing 3.55 percentage points. Industry contributed 3.54 percentage points while AHFF contributed 0.55 percentage point. Among the sub-industries, the top three contributors to the region’s economic growth were: Construction with 2.30 percentage points; Trade with 1.54 percentage points and Manufacturing with 1.19 percentage points. (PSA-10)