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Second Quarter of 2019 Compared to Its Performance on the Same Period Last Year (Figure 1)

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Second Quarter of 2019 Compared to Its Performance on the Same Period Last Year (Figure 1) TABLE OF CONTENTS I. Macroeconomic Performance . 1 Inflation . 1 Consumer Price Index . 1 Purchasing Power of Peso . 2 Labor and Employment . 2 II. Agriculture, Forestry and Fishery Sector Performance . 3 Crops . 3 Palay . 3 Corn . 4 Fruit Crops . 5 Vegetables . 6 Non-food and Industrial and Commercial Crops . 7 Livestock and Poultry . 7 Fishery . 7 Forestry . 8 III. Trade and Industry Services Sector Performance . 9 Business Name Registration . 9 Export . 9 Manufacturing . 10 Mining . 10 IV. Services Sector Performance . 12 Financing . 12 Tourism . 12 Air Transport . 13 Sea Transport . 13 Land Transport . 14 V. Peace and Security . 16 VI. Development Prospects . 18 MACROECONOMIC PERFORMANCE Inflation Rate Figure 1. Inflation Rate, Caraga Region Page 1 The region’s inflation further eased down in the second quarter of 2019 compared to its performance on the same period last year (Figure 1). On the average, the region’s inflation rate declined by 0.9 percentage point to settle at 2.4 percent in Q2 this year from 3.3 percent in the same period last year. The region’s inflation rate continued to slow down from 2.6 percent in April 2019 to 2.0 percent in June 2019, a decrease of 0.6 percentage point between those Source: PSA Caraga periods. This was attributed to the slow price increases in the overall price indices over time Figure 2. Inflation Rate by Province on the region’s basic goods and services, particularly food items and education. The implementation of Republic Act No. 10931, which provides free tuition, essentially reduced the cost of education in the region. At the provincial level, only the provinces of Agusan del Norte and Agusan del Sur have exhibited improved inflation rates in Q2 2019 compared to the same period last year, which decreased by 2.10 and 1.50 percentage points, Source: PSA respectively (Figure 2). Meanwhile, the Province of Dinagat Islands surpassed other and maintenance; health services; provinces on inflation rate, which slightly up by transportation; housing, water, electricity, gas 0.40 percentage point from 5.30 percent in Q2 and other fuels; and other commodity groups. 2018 to 5.70 in Q2 2019. The province of Surigao del Norte also posted a high inflation In particular, the average prices of beverages rate of 4.20 percent in Q2 2019 from 4.10 and tobacco commodity group rose by 17.8 percent relative to its last year’s performance. index points in Q2 2019 compared to last year. The thriving mining industry, booming tourism The cost of housing, water, electricity, gas and industry and high demand for transportation in other fuels climbed by 5.7 index points, while the delivery of goods and services were the furnishings and household equipment and major factors contributing to the high inflation in maintenance increased by 3.6 index points. the two provinces. Meanwhile, Surigao del Sur’s Meanwhile, education pared down by 9.4 index inflation was maintained at 1.90 percent in Q2 points from 110.3 in Q2 2018 to 100.9 in Q2 2019 compared to the same period last year. 2019 as tertiary education students in state Figure 3. Consumer Price Index, Caraga Region Consumer Price Index The region’s average consumer price index (CPI) for all items went up by 2.7 index points to 119.5 in Q2 2019 from 116.8 in Q2 2018 (Figure 3). The rise in the average CPI was mainly attributed to the rising cost in some of the region’s basic commodities as affected by the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, particularly the alcoholic beverages and Source: PSA Caraga tobacco; furnishings and household equipment Page 1 of 18 universities and colleges continue to benefit free Purchasing Power of Peso tuition fees as mandated by Republic Act 10931, otherwise known as the Universal Access to The region’s purchasing power of peso declined Quality Tertiary Education Act. in Q2 2019 at 0.84 centavos or a drop of 2.33 percent from 0.86 centavos in the same period As to provinces, Agusan del Norte and Agusan last year (Figure 5). Throughout the second del Sur exhibited slow increase in the average quarter of 2019, the PPP of the region steadily price indices of basic goods by 1.9 and 1.7 index maintained at 0.84 centavos as inflation waned points, respectively (Figure 4). Both provinces during the period. This implies that a consumer are major producers of agricultural products, of could only buy PhP 84.0 worth of goods for PhP which the prices of rice, corn, bread and cereals 100.0 at 2012 constant prices. The rising prices dropped during the period. Meanwhile, Surigao of basic commodities in the region further del Sur’s average price index posted an increase reduced the amount of goods and services that of 2.4 index points, which mainly attributed to the can be bought by the consumers. upswing in the prices of alcoholic beverages and tobacco commodity group. However, the Figure 5. Purchasing Power of Pesos, Caraga Region province posted the lowest CPI in education with 70.5 compared to the region’s 100.9, which has been ascribed to the presence of Surigao del Sur State University with satellite campuses spread throughout the province. On the other hand, the Province of Dinagat Islands recorded the highest increase in CPI at 6.5 index points. Aside from high prices on tobacco and alcoholic beverages, the cost in Source: PSA Caraga transportation is high considering that it is an island province, importing mostly of its goods Labor and Employment from the mainland Surigao e.g. agricultural products. In addition, the province cost for The region’s labor force increased by 2.94 education surged at an average of 19.7 index percent to 1.927 Million in Q2 2019 from 1.872 points due to the absence of a state-run tertiary Million in the same period last year (Table 1). education institution, which has been benefiting However, participation rate slightly decreased by the implementation of the free tuition policy of 0.8 percent percentage point, which recorded at the government. 65.3 percent from 66.1 percent in Q2 last year. Employment rate slightly rose by 0.2 percentage Surigao del Norte’s CPI also rose by 4.9 index point to reach 96.0 percent in Q2 2019, which points due to high prices on food items, resulted in the drop of the unemployment rate to alcoholic beverages and tobacco, and non-food 4.0 percent during period. Meanwhile, the items, such as solid fuels, dental services and region’s underemployment posted a significant secondary education. drop by 10.4 percentage points. Figure 4. Consumer Price Index by Province Table 1. Labor and Employment, Caraga Region Indicator Q2 ‘18 Q2 ‘19 Percent (%) Change Labor Force (in 1.872 1.927 2.94 Million) Labor Force 66.1 65.3 (0.80) Participation Rate Employment Rate 95.8 96.0 0.20 Unemployment Rate 4.2 4.0 (0.20) Underemployment 29.4 19.0 (10.4) Source: PSA Caraga Source: PSA Caraga Page 2 of 18 AGRICULTURE, FORESTRY AND FISHERY SECTOR PERFORMANCEBOR AND EMPLOYMENT Crops Figure 6. Palay Production by Province Palay The region’s volume of palay production shrunk by 2.16 percent, generating a total output of 271,230.48 MT in Q2 2019 compared to 277,219.00 MT in the same period last year (Figure 6). Surigao del Sur contributed largely to the decline in the region’s overall palay production with the provincial output dropped by Source: PSA Caraga 14.68 percent during the period. Agusan del Norte also posted lower production output by Figure 7. Palay Area Harvested by Province 1.02 percent from previous year’s produce. Meanwhile, the other provinces registered growth in palay production with Surigao del Norte generated the highest increase of 7.33 percent. This was followed by the Province of Dinagat Islands at 5.92 percent. Being the food basket of the region, Agusan del Sur exhibited only a slight increase of less than 1.0 percent with its output totalled to 140,617.50 MT in Q2 2019 from 139,884 MT in the same period last Source: PSA Caraga year. The province’s palay production comprised more than half of the region’s total commodity output. Figure 8. Palay Yield by Province Consequently, the low palay production output of the region was ascribed to the decline in the area harvested, particularly in the provinces of Surigao del Sur and Agusan del Norte by 6.30 percent and 2.84 percent, respectively (Figure 7). The expansion in the area harvested in Agusan del Sur by 6.95 percent, Dinagat Islands by 1.84 percent and Surigao del Norte by 1.17 percent, failed to compensate the reduction in Source: PSA Caraga the aggregate area harvested in Agusan del Norte and Surigao del Sur. Palay Farmgate Price In terms of yield, the region’s average yield per hectare decreased by 3.94 percent to settle at The implementation of Republic Act No. 11203, 3.15 MT/ha. in Q2 2019 compared to 3.28 liberalizing the importation, exportation and MT/ha. in Q2 2018 (Figure 8). Palay yield in the trading of rice, made a dint in the farmgate price provinces of Surigao del Sur and Agusan del Sur of region’s locally produced palay. The region’s dropped by 8.94 percent and 6.01 percent, palay farmgate price declined by 21.39 percent respectively. Meanwhile, the provinces of from an average of PhP 19.82/kg.
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