Industry now defines Calabarzon economy
Agriculture

Industry now defines Calabarzon economy

Agriculture contributed less than 10% of region's GDP

Apr 29, 2024, 1:40 AM
James Veloso and Catherine Go

James Veloso and Catherine Go

Local Editor

The rise of major industrial and commercial hubs has made Southern Luzon a powerhouse in the country's economy.

However, this came at the cost of its agricultural sector, now facing huge struggles due to the El Niño phenomenon.

This "mixed" conclusion came out of the 2023 report on the economic performance of the Calabarzon region held in Calamba City, Laguna last April 25.

During the news conference, which was spearheaded by officials from the Philippine Statistics Authority (PSA) and the National Economic Development Authority (NEDA), government officials presented the current outlook of the economic situation in the region, with some good (and not-so-good) news for Calabarzon's economy.



Slower growth

PSA officials, led by Calabarzon Regional Director Charito Armonia, reported a "slower pace" of economic growth in Calabarzon: 5.2 percent, compared to the 7.8 percent reported in 2022.

Still, the region became second in terms to the country's gross domestic product (GDP) growth at 0.8 percentage points, while it posted the second highest share of the country's total GDP, accounting for 14.7 percent of the total GDP.

"The main driver for the region's growth include wholesale and retail trade and repair of motor vehicles and motorcycles, which contributed 0.9 percentage growth to the regional growth and posting a 6.8 percent growth," Armonia reported.

Calabarzon has also become the only region that is "predominantly" industrial, with industry contributing P1.53 trillion, or 49.6 percent, to the regional economy.

This was followed by services (P1.42 trillion, or 46 percent) and agriculture (P0.14 trillion, or 4.5 percent).



Resilient economy


"The region fell short of attaining the GRDP growth rate target of 6.6 to 7 percent for 2023," was how Agnes Tolentino, regional director of NEDA Calabarzon, put it in her own presentation.

However, Tolentino stressed that the region's economy "managed" to remain resilient and stable amid the changing economic landscape brought by national and international uncertainties.

Furthermore, there has been "significant" growth in investments and household spending, with Calabarzon reporting the highest per capita household final expenditures in the region.

"This means that households in the region are among those that have higher disposable income to spend on goods and services," the NEDA official explained.



Agriculture biggest losers

Meanwhile, one issue that cropped up during the open forum following the conference is the worsening state of the region’s agricultural industry.

The region's fisheries sector, in particular, suffered a significant loss, with only 176,172 metric tons caught in the region in 2023 - a 9.9 percent loss compared to last year.

Corn production in Calabarzon also posted a 9.7-percent loss in 2023, along with other agricultural commodities such as calamansi (38.1 percent loss); chayote (23.2 percent loss); and sugarcane (22.2 percent loss).

On the positive side, however, palay production in the region posted a 9.5-percent increase, with 433,399 metric tons harvested in 2023.

Following a question posed by OpinYon Laguna, Emee Casbadillo from the Bureau of Fisheries and Aquatic Resources (BFAR) cited climate change and dwindling space for aquaculture, especially at Laguna de Bay, as among the main reasons for this decline.

However, Casbadillo also urged PSA officials to review some of its data, as she claimed data collected from the various provincial extension offices actually showed positive growth in the number of fishes caught.

“On the part of the BFAR, gusto ko pong ma-harmonize ang data na hindi po nakukuha, kasi po ang pinag-uusapan po natin is the economy of Calabarzon,” she added.

#WeTakeAStand #OpinYon #BFAR #NEDA #AgriculturalSector


We take a stand
OpinYon News logo

Designed and developed by Simmer Studios.

© 2024 OpinYon News. All rights reserved.