Davao City, April 27, 2023 – Dir. Maria Lourdes D. Lim, CESO II delivered the official statement of NEDA XI on the 2022 economic performance of Davao Region during the virtual News Conference of the 2022 Economic Performance of Davao Region, conducted by the Philippine Statistics Authority XI.
In her statement, Dir. Lim said that 2022 was a year of robust growth and resilience, with Davao Region’s economy growing by 8.1% and landing as the third fastest growing regional economy in the Philippines, tied with Central Luzon and Bicol Region. With the notable economic performance, Davao Region exhibited its strong economic fundamentals, buoyed by a dynamic private sector, and reinforced by healthy labor market. Moreover, Davao Region has fully regained its economic strength and when its economic output is viewed in current prices, Davao Region is now a trillion-peso economy, with around PhP1.095 trillion pesos total value of output.
Dir. Lim explained that the 8.1% growth rate was mainly driven by the accelerated growth of the services sector, and agriculture, forestry, and fishing. The better performance of the economy is indicative of the efforts of both the government and the private sector to restore the regional economy’s high-growth trajectory by boosting economic activity and production and helping businesses grow, while creating more and better-quality jobs, improving infrastructure, and accelerating poverty reduction. Moreover, the resumption of face-to-face classes and increased tourism activities also reflect an improvement in consumer and investor confidence in Davao Region.
With the economic performance in 2022, the Region added PhP71.8 billion of economic output, raising the total output and economic value of the Region at PhP954 billion (in constant prices). Dir. Lim also mentioned that Davao Region remained as the biggest regional economy in Mindanao in 2022 and contributing 4.8% to overall national output, adding that the Region is confident in remaining as the prime economic hub in Southern Philippines, and poised to increase further its contribution to the country’s GDP in the coming years, as we position Davao Region as international logistics hub in Mindanao.
Development Prospects
Dir. Lim also shared some of the development prospects for Davao Region in the near and medium term.
She said that the full and timely implementation of the Davao Regional Development Plan (DRDP), 2023-2028 is crucial. The Plan aims to reinvigorate job creation and hasten poverty reduction by steering the Region’s economy back to its high growth trajectory, and maintaining its national position as among the five fastest growing regional economies in the country.
Dir. Lim said that based on the DRDP, 2023-2028, Davao Region shall:
- Sustain high levels of economic growth. In pursuit of realizing a progressive Davao Region and attaining the Ambisyon Natin 2040, economic growth rate shall be maintained between 7.4 to 8.4 percent in 2023 and between 7.8 to 9.3 percent from 2024-2028.
- Create more, quality, and green jobs. In reinvigorating job creation, by 2028, unemployment rate in Davao Region shall be within 3.6 to 3.9 percent.
- Keep prices of commodities stable. To protect the purchasing power of the people, the overall inflation shall be kept to within 2.0 to 4.0 percent.
- Improve the welfare of individuals and families. The strategies contained in DRDP is expected to reduce poverty incidence from 16.8 percent in 2021 to between 9.5 to 9.9 percent in 2028.
Dir. Lim also mentioned that the Region shall continue to benefit from its “insurgency-free” status through increased investments and revival of the tourism industry. The re-launching of Davao Region as an Investment and Tourism-ready destination late last year is expected to boost the industry and services sectors.
In closing, Dir. Lim called on the private sector, to work hand-in-hand with government to speed up the economic resurgence of the Region and fuel its drive towards achieving its development goals faster and more inclusively.