Bikol's economy grows by 4.3% in 2008

Submitted by Vox Bikol on Sun, 07/26/2009 - 21:24

LEGAZPI CITY, Jul. 22  -- The economic growth in Bikol Region posted a moderate 4.3 percent in 2008 as a result of massive implementation of government programs and projects in the region.

Based in the National Statistical and Coordination Board (NSCB) regional office report, the industry sector was the strongest performer with a 7.5 percent expansion.

Bikol Region was one among five regions of the country recording growths higher than the national average, NSCB report stated.

The service sector, which held the biggest share in the region's output at 43.1 percent, grew at a decelerated rate of 4.2 percent from 6.1 percent in 2007.

Except for government services, growth in all sub-sectors slowed down.

On the other hand, growth in transportation, communication and storage slipped to 4.3 percent from 5.7 in 2007 due to the slowdown in the communication sector.

Trade decelerated from a 5.5 percent growth in the previous year to 2.7 percent in 2008.

Likewise, the healthy performance of financial services in the previous years was not sustained in 2008 with the 9.8 percentage point reduction in growth rate from 15.5 percent in 2007 to 5.7 percent in 2008.

Performance of the ownership of dwelling and real estate sub-sector slightly slowed down from 3.7 percent to 3.0 percent.

Private services, on the other hand, grew at a much slower rate of 5.9 percent from 9.8 percent in 2007.

The contraction in private education services and the sluggish performance of personal services pulled down overall sub-sector performance.

Government services improved to 5.7 percent from 3.5 percent in 2007.

The healthy performance of the industry sector was spurred by the hefty 16.7 percent growth in electricity and water, a complete turnaround from the 10.4 percent slump in 2007.

The completion of rehabilitation works in power generating plants restored the region's power generating capacity.

After three years of continued growth, performance of mining and quarrying faltered posting a negative 1.5 growth on account of decreased gold output.

Construction, on the other hand, managed to grow by 6.9 percent, down from a fast 65.5 percent expansion in 2007.

The growth was largely attributed to the spill over of typhoon rehabilitation works and increased private construction activities.

The manufacturing sector maintained a steady growth at 4.6 percent, slightly faster than the 4.4 percent growth recorded the previous year.

The deceleration in food manufacture was compensated by the increased output in the beverage industries resulting in the faster growth.

The improved performance of industry in 2008 further increased the sector's share to the total regional economy from 25.2 percent in 2007 to 25.9 percent in 2008.

Agriculture, fishery and forestry's performance slightly slowed down from 2.3 percent in 2007 to 2.0 percent growth in 2008.

The continued slump in the livestock and poultry industry pulled down over all industry growth.

Sluggish growth in the output of cereal grains added to decelerated growth of the sector. AFF comprised 31 percent of the regional economy.

Per capita GRDP improved by 2.3 percent from P7,058 in 2007 to P7,222 in 2008.

It is, however, still the third lowest among regions in the country. (PNA)