Home News Cagayan Valley Cagayan Valley region’s economy grows in 2017

Cagayan Valley region’s economy grows in 2017

TUGUEGARAO CITY, Philippines- Cagayan Valley’s economy grew faster at 7.2% in 2017 as compared to 3.8% gross domestic product (GDP) growth in 2016, Philippine Statistics Authority (PSA) reported.

The gross regional domestic product (GRDP) of the region also continues to grow with P149.6 billion in 2017 from P139.5 billion in 2016, at constant prices.

The GRDP measures the region’s economic performance, covering the value of goods and services produced throughout the region, PSA said.

PSA explained that the increase was a result of the region’s recovery in Agriculture, Hunting, Forestry, and Fishing (AHFF) particularly on agriculture, and faster growth in industries such as electricity, gas, and water supply (EGW), mining and quarrying (MAQ), and construction (CNS).

Services sector accounted the largest chunk of Cagayan Valley’s economic boom as it posted 51.1% of the region’s economic production.

Other services contributed most of the growth with 28.1%, followed by transport, storage,  and communication (TSC) at 25.4%, Real Estate, Renting, and Business Activities (REBRA) with 13%, financial intermediation (FI) at 12.2%, Trade at 11%, and public administration and defense (PAD) with 10.4% of the economic growth in Services.

Despite an increase in 2017, Services posted a slower pace at 6% as compared with 6.6% increase in 2016.

ECONOMIC GROWTH. Private stakeholders and government agencies in the region took part in a press conference and open forum on the latest economic performance of Cagayan Valley on Thursday, April 26. Photo by Gerard Lucena.

PSA attributed the slow rate to the slower growth pace of TSC and OS, the two major contributors to the Services sector.

“From 6.6% and 9.9% growths in 2016, TSC and OS grew slower at 4.5% and 7.8% in 2017, respectively,” PSA noted.

Agriculture sector shared the second largest contribution to region’s economy with 33.7% of the GRDP. 95.4% of this industry’s boom is from agriculture and forestry while only 4.6% is from the fishing sector.

“AHFF rebounded from 1 3% decrease in 2016 to a 6.2% growth in 2017. This was mainly due to the recovery of agriculture and forestry sub-industry, which accounts to the bulk of the AHFF outpu,” PSA said.

The Industry sector shared 15.2% of the region’s economic growth with construction industry posting the most contribution at 51.4%. EGW sliced 20.45, MAQ posted 18%, while manufacturing shared 10.2% of the industrial economic growth.

“Industry sped up the region’s economy as it grew faster from the previously posted 11.9% growth in 2016 to a 13.9% growth in 2017,” PSA said.

Meanwhile, Cagayan Valley has the 7th highest GDP growth among all regions. Cordillera Administrative Region nets the highest regional growth rate of 12.1%.

Region 02 is among 12 regions which are predominantly services-based.

The agency presented the latest figures in a news conference in Pulsar Hotel, Peñablanca, Cagayan on Thursday, April 26. An open forum was also held to discuss the data.

The law mandates PSA to disseminate the annual GRDP through simultaneous press conference nationwide on the final Thursday of April.

Government agencies and representatives from various business sectors in the region attended the said conference. Northernforum.net

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