First Quarter of 2019

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 . 3 Fruit Crops . 4 Vegetables . 4 Non-food and Industrial and Commercial Crops . 5 Livestock and Poultry . 5 Fishery . 6 Forestry . 6 III. Trade and Industry Services Sector Performance . 8 Business Name Registration . 8 Export . 8 Import . 9 Manufacturing . 9 Mining . 10 IV. Services Sector Performance . 11 Financing . 11 Tourism . 12 Air Transport . 12 Sea Transport . 13 Land Transport . 13 V. Peace and Security . 15 VI. Development Prospects . 16 MACROECONOMIC PERFORMANCE Inflation Rate Figure 1. Inflation Rate, Caraga Region The region’s inflation rate continued to move at a slower pace in Q1 2019. From 4.2 percent in December 2018, it declined by 0.5 percentage point in January 2019 at 3.7 percent (Figure 1) . It further decelerated in the succeeding months, registering 3.3 percent in February and 2.9 percent in March. This improvement was primarily due to the slow movement in the monthly increment in the price Source: PSA Caraga indices of heavily-weighted commodity groups, such as food and non-alcoholic beverages; Figure 2. Inflation Rate by Province housing, water, electricity, gas and other fuels; and transport. The importation of rice somehow averted the further increase in the market price of rice in the locality. In addition, the provision of government subsidies particularly to vulnerable groups (i.e. DOTr’s Pantawid Pasada Program) and free tuitions under Republic Act No. 10931 have eased the costs for transportation and education. Nonetheless, on a year-on-year basis, the region’s average inflation in Q1 2019 was still Source: PSA relatively higher by 0.6 percentage point compared to the previous year’s average at 2.7 percent. Figure 3. Consumer Price Index, Caraga Regi on The provincial inflation followed the same track relative to the region. However, the provinces of Dinagat Islands and Surigao del Norte exhibited considerably higher inflation rates in Q1 2019 at an average rates of 8.2 percent and 5.1 percent, respectively (Figure 2) . Dinagat Islands has been heavily affected by the surge in the average costs of food commodities and transport being an island province and a net importer of agricultural products. The booming Source: PSA Caraga tourism and mining industries in Surigao del Norte further influenced the rise in the prices of Figure 4. Consumer Price Index by Province basic goods in the locality. Meanwhile, Agusan del Norte and Agusan del Sur registered lower inflation rates in Q1 2019 compared to the previous year with a decrease of 0.40 and 1.00 percentage points, respectively. Consumer Price Index The relatively high increase in the region’s inflation, combined with the implementation of the Tax Reform for Acceleration and Inclusion Source: PSA Caraga 1| P a g e (TRAIN) Law, continued to affect the average Labor and Employment prices indices of the region’s basket of goods and services. The region’s working age population increased on a year-on-year basis by 2.83 percent from The region’s average price index for all items 1.875 million in Q1 2018 to 1.928 million on the went up by 4.9 points in Q1 2019, yielding a same period last year (Table 1) . However, labor mean CPI for the quarter of 119.5 from 114.64 force participation rate shrunk by 7.9 in the same period last year (Figure 3) . This percentage points to settle at 59.2 percent, was due to the notable year on year average which was lower by 1.0 percentage point increase in the prices of some commodity compared to the national average of 60.2 groups, such as alcoholic beverages and percent. tobacco by 21.1 percent; food and non- alcoholic beverages by 4.0 percent; housing, Employment rate also fell by 1.9 percentage water, electricity, gas and other fuels by 4.9 points, which posted at 94.1 percent in Q1 this percent; furnishing, household equipment and year from 96.0 percent of the same period last routine by 3.1 percent; and restaurant and year. The region’s employment rate was 0.7 miscellaneous goods and services by 2.5 percentage point below the national average of percent. 94.8 percent. Consequently, unemployment in the region grew by 1.9 percentage point from Among the provinces, Dinagat Islands exhibited 4.0 percent in Q1 2018 to 5.9 percent in Q1 this the sharpest increase in its average CPI by 9.0 year. Nonetheless, underemployment rate points, from 110.6 in Q1 2018 to 119.6 in the dropped by 4.3 percentage points from 24.7 same period this year (Figure 4) . Nonetheless, percent in Q1 2018 to 20.4 percent of the same Surigao del Sur posted the highest average period this year. CPI of 123.8 in Q1 2019. Table 1. Labor and Employment, Caraga Region Indicator Q1 ‘18 Q1 ‘19 Percent (%) Purchasing Power of Peso Change Labor Force 1.8 75 1.9 28 2.83 The region’s purchasing power of peso (PPP) Million Million decelerated over time. On a monthly basis, the Labor Force 67.1 59.2 (7.9) PPP weakened by 1.19 percent, from 0.84 Participation Rate centavos in January to 0.83 centavos by end of Employment Rate 96.0 94.1 (1.9) March this year. On a year on year basis, the Unemployment Rate 4.0 5.9 1.9 mean PPP dropped by 7.79 percent from an Underemployment 24.7 20.4 (4.3) average of 0.90 centavos to a peso in Q1 2018 Source: PSA Caraga to 0.83 centavo to a peso in the same quarter this year. This implies that for PhP100.00, a consumer could only buy PhP83.0 worth of goods based on 2012 constant prices. The relatively high local inflation further squeezed the waning PPP as it further reduced the amount of goods and services that can be bought by the consumers (Figure 5) . Figure 5. Purchasing Power of Pesos, Caraga Reg ion Source: PSA Caraga 2 | P a g e AGRICULTURE, FORESTRY AND FISHERY SECTOR PERFORMANCE BOR AND EMPLOYMENT Figure 6. Palay Production by Province Crops Palay The region’s palay commodity generally performed well in Q1 2019 with its volume of production increased by 19.01 percent, from 21,659 MT in Q1 2018 to 25,776 MT (Figure 6) . This was credited to the remarkable surge in the palay outputs generated in Agusan del Norte by 24.51 percent, Surigao del Norte by Source: PSA Caraga 22.94 percent and Surigao del Sur by 21.93 Figure 7. Palay Area Harvested by Province percent. Surigao del Norte topped among other provinces, which palay production comprised 42 percent of the regions total output. It is followed by Surigao del Sur, comprising 34.7 percent. The upsurge in palay production was largely ascribed to the expansion in the region’s aggregate area harvested by 8.08 percent and yield by 10.1 percent. Palay area harvested particularly expanded in Agusan del Norte by 19.0 percent, Surigao del Norte by 8.9 percent Source: PSA Caraga and Surigao del Sur by 10.22 percent (Figure 7) . Both Surigao del Norte and Surigao del Sur Figure 8. Palay Yield by Province recorded the largest area planted to palay, comprising 41.8 percent and 35.8 percent to the region’s total palay cultivated area, respectively. Meanwhile, Agusan del Sur and Dinagat Islands’ area harvested reduced by 19.5 percent and 4.09 percent, respectively. In terms of yield, a notable increase was recorded in Agusan del Norte by 19.0 percent, Surigao del Norte by 8.9 percent and Surigao del Sur by 10.22 percent (Figure 8) . Agusan del Sur, the food basket of the region, experienced Source: PSA Caraga a decline in its palay yield by 2.2 percent. Thus, the province’s produced palay comprised only (Figure 9) . Except for Agusan del Norte, the 5.8 percent to the region’s total in Q1 this year. rest of the region’s provinces displayed a remarkable increase in said commodity output. In particular, Agusan del Sur’s production Corn climbed by 222.27 percent, from 1,398 MT in Q1 2018 to 4,505 MT in Q1 this year. Agusan The corn commodity exhibited an astonishing del Norte produced 9.75 percent less in Q1 upsurge of 148.57 percent in its volume of 2019 or a reduction of 55.60 MT (Figure 10) . production, from 2,144 MT in Q1 2018 to 5,329.39 MT in the same period this year 3| P a g e Agusan del Sur led among the provinces in the Figure 9. Corn Production by Province region in terms of area expansion for corn production. The province developed a total of 1,065 hectares additional area in Q1 2019, representing a 317.91 percent increase in the area harvested for corn from 335 hectares in Q1 last year. On the other hand, Agusan del Norte’s corn production area fell by 7.83 percent during the period. Overall, the region attained 169.23 percent surge in areas harvested for corn commodity, from 650 hectares in Q1 2018 to 1,750 hectares in Q1 2019. Source: PSA However, the region’s corn yield dropped by Figure 10. Corn Area Harvested by Province 7.67 percent, from 3.30 MT/hectare in Q1 2018 to 3.05 MT/hectare in the same period this year (Figure 11) .

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