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SOCCSKSARGEN's economy slows down
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4.6 percent The economy of SOCCSKSARGEN Region grew at a slower pace by registering a 4.6 percent growth in 2008 from a robust performance of 6.7 percent in 2007. The deceleration was contributed by the slowdown in all three major sectors. AFF, the biggest contributor to the regional economy which accounted for 42.9 percent of the region’s total output, decelerated to 6.7 percent from a remarkable growth of 7.8 percent recorded in 2007. The favorable performances turned in by fishery and livestock were not able to cushion the lower growths posted by corn, coconut, banana, pineapple, rubber and other crops as well as poultry. Sugarcane production, on the other hand, posted a remarkable growth attributed to the higher demand for muscovado sugar in the local and international markets. Sugarcane is also being eyed as an alternative source of biofuels. The industry sector, which accounted for about 31.0 percent of the region's total economic output, posted a sluggish performance as it dived from a 6.9 percent growth in 2007 to a modest 3.5 percent growth in 2008 as all of its subsectors experienced slowdown. Manufacturing which accounted for the biggest share of the total industry output dropped from 5.4 percent to 3.4 percent; mining and quarrying from 9.1 percent to 3.9 percent and construction from 18.1 percent to 5.8 percent. Electricity and water contracted to negative 1.5 percent in 2008 from a 4.1 percent growth in 2007 due to reduced power generation of the Mt. Apo Geothermal plants located in Cotabato Province. Services, which comprised 26.1 percent of the region's economy, slipped down to 2.7 percent in 2008 from 4.7 percent in 2007 as all subsector outputs declined except for ODRE and government services. TCS grew by only 0.6 percent in 2008 from 5.7 percent in 2007; finance, 3.5 percent from 5.8 percent; private services, 4.1 percent from 5.3 percent. ODRE, on the other hand, more than doubled its growth as it went up from 1.2 percent to 2.8 percent and government services substantially grew from 3.6 percent in 2007 to 6.9 percent in 2008. AFF posted the biggest contribution to the GRDP growth at 2.8 percentage points followed by the industry sector at 1.1 and service sector at 0.7 percentage point. Real per capita GRDP increased by 2.3 percent from P12,499 in 2007 to P12,792 in 2008. |