Contact Person: Frederick B. Dulay E-mail: nscbregion1@yahoo.com
PR-200807-RO1-04
Tel. No. (072) 888-2160/700-3035
July 29, 2008
Ilocos
Region’s economy decelerates
AFF, contributing 42.8 percent of the region’s
output, grew by 4.5 percent in 2007, from 7.3 percent the previous year. The deceleration was traced to the sluggish
growth in the production of the region’s major crops caused by the prolonged
dry season in Northern Luzon.
Services, also with a 42.8 percent contribution to the regional economy, expanded to 5.4 percent from the 4.8 percent growth in 2006. All sub-sectors contributed to the growth with finance, TCS, trade and private services recording faster growths of 10.2 percent, 6.7 percent, 6.1 percent and 5.2 percent, respectively. Improved performance of the insurance subsector fueled the growth of finance while increased business in wholesale and retail trade boosted the growth of trade. Meanwhile, ODRE grew at a slower 4.3 percent pace brought about by the sluggish performance of real estate. Government services continued its downtrend decelerating to 2.1 percent from 2.5 percent in 2006.
Industry, contributing 14.4 percent of the region’s output, expanded by 11.7 percent from 6.9 percent growth in 2006, with all subsectors posting improved growths. Mining and quarrying and electricity and water rebounded from dismal performances in 2006 to increase by 9.8 percent and 7.9 percent, respectively. Mining and quarrying’s turnaround was primarily due to the higher production of stone quarrying and non-metallic minerals. Electricity and water, on the other hand, recovered with the resumption of operations of the two power plants in the region which closed down in 2006. Construction, the biggest contributor to the sector grew by 16.7 percent mainly due to the increased public construction activities. The performance of manufacturing improved to 5.3 percent from 4.4 in 2006 brought about by the increased production in the beverage industry.
IRENEA B. UBUNGEN
Head, NSCB Regional Division I