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, 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 and 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 further influenced the rise in the prices of Figure 4. Consumer Price Index by Province basic goods in the locality. Meanwhile, del Norte and 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 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 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

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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) . This was due to low corn yield generated from the Agusan provinces. Corn yield in Agusan del Norte reduced by 2.08 percent, while Agusan del Sur contracted by 22.89 percent.

Fruit Crops

The overall fruit production in the region Source: PSA declined by 2.25 percent in Q1 2019 with total yield reached 63,587.67 MT from 65,053.76 MT Figure 11. Corn Yield by Province in the same quarter last year (Figure 12) . This was attributed to lower quantity produced by the major fruit crops, which plunged by 2.43 percent in Q1 2019. Major fruit crops production dropped from 62,623.81 MT in Q1 2018 compared to 64,181.05 MT in the same period last year. Major fruit crops accounted roughly 98.0 percent of the total fruit production in the region, which mainly comprised of banana, calamansi, mango and pineapple.

While there was notable upsurge particularly in Source: PSA priority and other fruit commodities at an average rate of 14.66 percent, this growth Figure 12. Fruit Crops Production, Caraga Region missed to offset the drop in banana production by 2.85 percent. The banana commodity encompassed approximately 97 percent of the region’s total fruit production. On one hand, both the priority and other fruit crops contributed minimally to the region’s aggregate fruit production with a combined share of only 1.52 percent.

Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga 4 | P a g e

Vegetables followed, which production plunged by 3.81 percent. The major NFICC suffered a decline The total production output of the region’s by less than 1 percent. vegetables slightly fell by 1.88 percent in Q1 2019, from 13,171 MT in Q1 2018 to 12,923 The major NFICC contributed largely in the MT in the same period this year (Figure 13) . region’s total production, which comprised This was attributed to the low production 84.88 percent. Coconut production outputs in major and other vegetable encompassed the bulk of the total output under commodities, which declined by 3.43 percent this crop category, which accounted 98.15 and 0.36 percent, respectively. Major percent. It is followed by rubber, which share vegetables accounted 62.68 percent, while posted at 1.25 percent. Coconut production other vegetables contributed 9.21 percent. On declined by 0.35 percent, from a total output of the other hand, priority vegetables eked out a 88,569 MT in Q1 2018 to 187,907 MT in the 1.24 percent increase. However, this same period this year. Rubber production also commodity group comprised only 28.11 percent dropped by 7.15 percent, generating a total of the region’s total output. yield of 2,582 MT in Q1 2019 from 2,398 MT in the same period last year. Meanwhile, Figure 13. Vegetable Crops Production, Caraga Region production ouputs in abaca, coffee and sugarcane improved by 6.41 percent, 34.19 percent and 15.30 percent, respectively. However, all the three commodities accounted only less than 1 percent of the region’s total NFICC production.

Livestock and Poultry

Both livestock and poultry productions in the Note: Q1 2019 data were only preliminary estimates region slipped in Q1 2019 relative to the same Source: PSA Caraga period last year by 5.06 percent and 3.46

Figure 14. Non -Food Industrial and Commercial Crops Figure 1 5. Livestock Production, Caraga Region Caraga Region

Note: Q1 2019 data were only preliminary estimates Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga Source: PSA Caraga Figure 16. Poultry Production, Caraga Region Non-Food Industrial and Commercial Crops

The combined production output of all non-food industrial and commercial crops (NFICC) in the region dropped by 1.67 percent in Q1 2019, which totalled to 225,555 MT against 229,396 MT in the same period last year (Figure 14) . All commodity groups exhibited a decline in production led by priority NFICC, which plunged by 8.28 percent. The other NFICC Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga 5 | P a g e percent, respectively (Figures 15 and 16) . In Meanwhile, commercial fisheries and particular, the livestock total production aquaculture posted an upward movement in slumped by 5.06 percent, from 10,2880 MT in production outputs by 64.06 percent and 32.20 Q1 last year to 9,760 MT in the same period percent, respectively. However, the combined this year as all commodities therein suffered a share of both commercial and aquaculture decline in production outputs. Hogs production, fisheries comprised only 32 percent of the which accounted 88.03 percent of the region’s total fishery output. The intensification aggregate livestock production, plunged by in aquaculture fishery production was attributed 5.23 percent. to the increase in mudcrab and milkfish production fuelled by considerably high market The livestock commodities, such as carabao, prices of said commodities. goat and cattle, which combined production share encompassed 11.97 percent, have Surigao del Norte contributed roughly 40 generated a lower production output relative to percent of the region’s total fishery production. last year’s performance by 4.67 percent, 4.55 However, its aggregate fishery output percent and 1.52 percent, respectively. decelerated by 24.74 percent in Q1 2019 as it Apparently, the region has long been a net only produced a total volume of 6,092.97 MT importer of livestock products. from 8,095.50 MT in the same period last year. This was followed by Surigao del Sur, which On poultry products, only the production of production reached to 5,865.88 MT, chicken eggs and duck eggs displayed a representing a 35.15 percent growth from its positive performance in Q1 2019 compared to total fishery production in Q1 2018. Q1 last year, which both increased at a margin of less than 1 percent. The production output of Despite the slump in total fishery production, chicken and ducks dropped by 5.38 percent the region generated a higher aggregate fishery and 9.38 percent, respectively. The poultry value, which rose by 3.41 percent from PhP production was largely dominated by chicken 1.46 Billion in Q1 2018 to PhP 1.55 Billion in products, which comprised 96.48 percent of the Q1 2019. The 17.14 percent reduction in region’s total poultry industry output. municipal fisheries’ output contributed only 5.83 percent drop in the aggregate fishery value. This was offset by higher fishery value Fishery generated in commercial fishery and aquaculture, which totalled to PhP 87 Million The overall fishery production in the region (5.93 percent) and PhP 29 Million (15.13 decreased by 3.48 in Q1 2019 with a total percent), respectively. output reached 15,161.82 MT from 15,708.68 MT in the same period last year (Figure 17) . This was primarily driven by a hefty 17.14 Forestry percent decline in the production output of municipal fishery, which contributed 68.09 The region’s overall log production improved percent of the region’s total fishery production. despite the implementation of Executive Order The waning fish catch within the municipal No. 23, which declared a moratorium in the waters was attributed to the continued harvesting of naturally grown and residual deterioration of the coastal ecosystems, illegal forests. The region’s total log production grew fishing activities and overexploitation of marine species. Figure 18. Log Production, Caraga Region Figure 17. Fishery Production, Caraga Region

Source: DENR Caraga Note: Q1 2019 data were only prel iminary estimates Source: PSA Caraga 6 | P a g e by 5.47 percent, from 116,807 cu.m. in Q1 2018 to 123,191 cu.m. in the same period this year (Figure 18) .

Both Surigao del Sur and Agusan del Sur were the top contributors to the growth as log productions in said provinces exhibited a remarkable increase by 88.88 percent and 2.32 percent, respectively. Accordingly, several tree farmers in Surigao del Sur have already harvested a sizeable volume of falcata, particularly in areas developed in 2011 to 2015 under the DENR’s National Greening Program (NGP), which contributed to the huge increase in the log production of the province. Agusan del Sur and Surigao del Sur ranked first and second in log production, which contributions accounted 65.20 percent and 31.64 percent to the region’s aggregate log production, respectively. Meanwhile, log production in Agusan del Norte plummeted by 72.83 percent and nil production in Surigao del Norte in Q1 2019. Nonetheless, these dismal accomplishments were providently even out by high production rates in Surigao del Sur and Agusan del Sur.

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TRADE AND INDUSTRY SERVICES SECTOR PERFORMANCE

Business Name Registration The region’s domestic sales grew by 12.95 percent, from PhP 206.21 Million in Q1 2018 to PhP 232.92 Million of the same period this year The region registered a total of 6,903 new (Table 4) . This was driven mainly by the businesses in Q1 of 2019, representing a 3.28 upsurge in the recorded domestic sales in percent increase in business name registration Surigao del Sur, which significantly grew by (BNR) from 6,684 registrants in the same 3,971.76 percent. Domestic sales was up from period last year (Table 2) . This was attributed PhP850,000 in Q1 2018 to PhP 34.61 Million in to the increasing number of Negosyo Centers Q1 2019. However, Agusan del Norte and established at the local level, improved Dinagat Islands registered lower domestic partnership between DTI Caraga and local sales relative to the previous year’s government units (LGUs) and massive performance by 22.30 percent and 23.22 advocacy conducted with the private sector. percent, respectively.

Surigao del Norte and Surigao del Sur Table 4. Domestic Sales, Caraga Region achieved substantial increase in the number of Province Q1 201 8 Q1 20 19 Percent (%) registrants in Q1 2019, which posted at 74.74 Change percent and 17.42 percent, respectively. The ADN 79.96 62.13 (22.30) expansion generated by the Surigao provinces ADS 96.20 113.76 18.25 offset the contraction generated in the Agusan SDN - - - provinces and Dinagat Islands, which dropped SDS 0.85 34.61 3,971.76 at an average of 37 percent. PDI 29.20 22.42 (23.22) Caraga 206.21 232.92 12.95 Table 2. New Business Name Registered, Caraga Region Source: DTI Caraga Province Q1 201 8 Q1 20 19 Percent (%) Change Moreover, investments recorded from business ADN 2,315 2,080 (10.15) name registration in the region jumped by ADS 1,355 1,300 (4.06) 733.53 percent, from PhP 432.32 Million in Q1 SDN 1,211 1,422 17.42 2018 to PhP 3.6 Billion of the same period this SDS 867 1,515 74.74 year (Table 5) . All provinces recorded higher PDI 936 586 (37.39) investment generated in in Q1 this year with Caraga 6,684 6,903 3.28 Surigao del Norte generated a huge Source: DTI Caraga investment, which totalled to PhP 2.92 Billion. Surigao del Sur’s investments expanded by Consequently, jobs generated from registered 3,641.47 percent from PhP 4.34 Million in Q1 businesses exhibited an increase of 5.97 2018 to PhP 162.38 Million in the same period percent in Q1 this year from 10,459 jobs this year. Dinagat Islands gathered investment generated in the same quarter last year (Table was up by 139.53 percent. 3) . All provinces recorded higher job generated, except for Dinagat Islands that posted a decline Table 5. Investment, Caraga Region of 68.35 percent from 1,128 jobs generated in Province Q1 201 8 Q1 20 19 Percent (%) Q1 2018. Change ADN 269.32 271.36 0.76 Table 3. Jobs Generated, Caraga Region ADS 135.26 142.27 5.18 Province Q1 201 8 Q1 20 19 Percent (%) SDN - 2,971.44 - Change SDS 4.34 162.38 3,641.47 ADN 4,278 4,802 12.25 PDI 23.40 56.05 139.53 ADS 1,552 1,897 22.23 Caraga 432.32 3,603.50 733.53 SDN 2,253 2,761 22.55 Source: DTI Caraga SDS 1.248 1,266 1.44 PDI 1,128 357 (68.35) Export Caraga 10,459 11,083 5.97 Source: DTI Caraga

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The region’s aggregate volume of exported Figure 19. Volume of Export, Caraga Region products slipped by 22.44 percent in Q1 2019, which totalled to 1.84 billion kilograms compared to the 2.37 billion kilograms in the same period last year (Figure 19) . The drop in the export volume was attributed to the decrease in the shipment of nickel ores that was attributed to low production in said mineral commodity. The decrease in the production of nickel ores was caused by low buying price in the global market and temporary shutdown in Source: PSA Caraga the operations of some mining companies pending full environmental rehabilitation of their Figure 20. Value of Export, Caraga Region mining concession areas.

However, the value of exports grew by 24.58 percent in Q1 2019, which totalled to US$197 Million from US$158 Million in Q1 2018 (Figure 20) . The increase in export value was due to relatively modest prices of high-value mineral commodities in the global market which were shipped out to and , . In Source: PSA Caraga addition, the demand for coconut products and banana chips grew, which were exported Figure 21. Volume of Import, Caraga Region mainly to developed countries such as Australia, Canada, Denmark, France, Netherlands, New Zealand, , USA, among others.

Import

The region’s aggregate volume of imported Source: PSA Caraga products significantly tapered down by 86.75 percent in Q1 2019, which aggregate quantity summed up to 20 million kilograms compared Figure 22. Value of Import, Caraga Region to 157 million kilograms in Q1 2018 (Figure 21) . Hence, the value of imported products also decelerated by 62.87 percent, from US$ 12.98 Million in Q1 2018 to US$ 4.82 Million in Q1 2019 (Figure 22) . Among the imported products were rice from Thailand and chemical products from Japan and China. About US$ 5.4 Million worth of Thailand rice was traded in via the Port of Surigao in February this year. Rice importation was approved by the government to Source: PSA Caraga address the momentary shortage in the supply of rice locally. Figure 23. Manufactured Wood -based Products

Manufacturing

The wood and mining industries are main producers of manufactured products in the region. The wood-based manufactured forest products comprised of lumber, veneer and plywood. While the mineral-based manufactured product comprised of the nickel Source: PSA Caraga 9 | P a g e ore and cobalt mixed sulfide, a semi-finished during the period. Excise tax collection mineral-based product, produced by the plummeted by a hefty 70.36 percent in Q1 Taganito HPAL Corporation. 2019, generating only a total collection of PhP 96 Million from PhP 324.111 Million in the The overall volume of manufactured forest same period last year. The huge decrease was products in the region was up by 22.75 percent attributed to the reduction in the excise tax from 94,308 cu.m. in Q1 2018 to 115,764 cu.m. collection of Surigao del Norte, which plunged in Q1 2019 (Figure 23) . Lumber production by 97 percent. No collection was also recorded shrunk by 12.37 percent. However, this was in Surigao del Sur during the period. offset by the rise in veneer and plywood production, which grew by 23.02 percent and Royalty tax collection, which is only imposed to 47.10 percent, respectively. Veneer constitued mining companies operating within the mineral 45 percent of the region’s aggregate output of reservation areas, dipped by 96.37 percent. wood-based manufactured products. High From a sum of PhP 335 Million accrued from veneer production was attributed to high mining companies in Q1 2018, total collection production of match splint as raw material for reached only to PhP 12 Million in the same match production. It is followed by plywood at period this year. Surigao del Norte’s actual tax 39 percent, while lumber at 16 percent. collection pulled down the region’s aggregate royalty tax generated, which dropped by 97.28 The bulk of the region’s manufactured forest percent. From PhP 333.938 Million in Q1 2018, products are produced in Agusan del Norte, the province generated a total tax collection of comprising 88 percent of the region’s total PhP 9 Million in the same quarter this year. The output as most of the wood-based processing province’s share of royalty tax constituted 75 plants are located within the province. percent of the region’s total collection in Q1 2019.

Mining Table 6. Mining Statistics, Caraga Region Province Q1 2018 Q1 2019 Percent (%) The mining industry performance generally Change slowed down in Q1 2019 compared to the Volume of Production same period in 2018 as evident in the number Gold and 634,513.1 1,069,008.94 68.48 of mineral shipments, production outputs and Silver (oz) taxes generated. Nickel Ore 818,624.41 733,332.34 (10.42) and Cobalt On mineral production, nickel ore and cobalt Mixed mixed sulfide production dropped by 10.42 Sulfide percent in Q1 2019 (Table 6) . This was due to (WMT) low buying price of nickel ore in the global Gross Sales (PhP Billon) market, which discouraged the mining Gold and 1.128 1.885 67.13 companies in the region to undertake massive Silver (oz) production of nickel ores. Indeed, nickel ore Nickel Ore 6.975 5.532 (20.69) shipments in Q1 2019 reduced by 39.62 and Cobalt Mixed percent, from 53 shipments in Q1 2018. Sulfide Meanwhile, gold and silver production Total 8.103 7.417 (11.80) increased by 68.48 percent in Q1 2019, from Excise Tax Collected (PhP Million ) 634,513 ounces to 1.069 million ounces in the ADN 10. 56 1 10. 943 3.62% same quarter this year. Gold and silver were ADS 45 .112 75 .398 67.13% solely produced in Agusan del Sur. SDN 267. 150 7.272 -97.28% SDS 1. 28 8 - - Consequently, the drop in nickel ore production PDI - 2. 462 - affected the actual gross sales of mineral Total 324 .111 96. 075 (70.36) products, which fell by 8.47 percent despite the Royalty Tax Collected (PhP Million )* 67.13 percent rise in the value of gold and SDN 333 .93 8 9.090 (97.28) silver. SDS 1. 610 - PDI 3. 07 8 - Both excise and royalty taxes collection from Total 335. 547 12 .16 8 (96.37) mining development substantially declined *only for provinces with declared mineral reservation area. Source: MGB Caraga 10 | P a g e

SERVICES SECTOR PERFORMANCE

Financing percent of the region’s aggregate assets in Q1 2019, registered a 4.45 percent decrease in The region’s banking sector performance total assets from PhP28.32 Billion in Q1 2018 improved as of Q1 of 2019 compared to the to PhP27.06 Billion in Q1 2019. Also, the same period last year. The region’s total bank province posted the biggest share in the asset exhibited an increase of 6.51 percent, regional total loan portfolio by 48.64 percent which totalled to PhP 70.66 Billion in Q1 2019 pegged at PhP13.65 Billion, an increase of compared to PhP 66.34 Billion in the same 18.39 percent in Q1 2019. Meanwhile, on total period last year (Figure 24) . Total gross gross operating income, the Surigao provinces operating income reached PhP 870 Million, recorded decreases in total gross operating yielding an increase of 8.75 percent from PhP income by 18.75 percent (Surigao del Norte) 793.38 Million of the same period last year. and 15.79 percent (Surigao del Sur). Loan portfolio also grew at a pace of 17.60 percent, from PhP 23.86 Billion in Q1 2018 to Table 7. Banking Statistics by Type of Banks PhP 28.07 Billion this year. Indicators 2017 20 18 Percent (PhP (PhP (%) Figure 24.0 Banking Statistics, Caraga Region Billion) Billion) Change Total Asset Universal and 53.33 56.16 5.31 Commercial Banks Thrift Banks 6.47 7.47 15.46 Rural 6.54 7.03 7.49 Cooperative Banks Total 66.34 70.66 6.51 Total Gross Operating Income Universal and 0.30 0.34 13.33 Commercial Source: PSA Banks Thrift Banks 0.21 0.29 38.10 As to types of bank, the universal, commercial Rural 0.29 0.24 (17.24) and thrift banks booked higher figures in Q1 Cooperative Banks 2019 compared to Q1 2018. Universal and Total 0.80 0.87 8.75 commercial banks achieved the widest margin Loan Portfolio on loan portfolio at 37.87 percent increase in Universal and 13.44 18.53 37.87 Q1 2019 (Table 7) . Thrift banks expanded by Commercial 38.10 percent on total gross operating income. Banks Rural and cooperative banks posted growth in Thrift Banks 5.48 5.69 3.83 total assets by 6.51 percent but recorded a Rural 4.95 3.85 (22.22) decline in total gross operating income and Cooperative loan portfolio by 17.24 percent and 22.22 Banks percent, respectively. Total 23.87 28.07 17.60 Source: BSP As to provinces, Dinagat Islands exhibited a jump in all three financial parameters. The Table 8. Banking Statistics by Province province registered a 210.81 percent increase Indicators 2017 20 18 Percent (%) in total assets from PhP 370 Million in Q1 2018 (PhP Billion) (PhP Billion) Change to PhP 1.15 Billion in Q1 2019 (Table 8) . Also, Total Asset it registered a substantial increase by 50 ADN 28.32 27.06 (4.45) percent in total gross operating income and 80 ADS 11.60 13.56 16.90 percent in total loan portfolio. On the other PDI 0.37 1.15 210.81 hand, Agusan del Norte, comprised 38.29 SDN 14.24 15.87 11.45 SDS 11.80 13.02 10.34 11 | P a g e

Indicators 2017 20 18 Percent (%) The total number of passengers was up by (PhP Billion) (PhP Billion) Change 12.99 percent, from 167,600 passengers in Q1 Total 66.34 70.66 6.53 Total Gross Operating Income Figure 25. Tourist Arrival, Caraga Region ADN 0.27 0.39 44.44 ADS 0.17 0.17 0.00 PDI .002 .003 50.00 SDN 0.16 0.13 (18.75) SDS 0.19 0.16 (15.79) Total 0.792 0.853 7.70 Loan Portfolio ADN 11.53 13.65 18.39 ADS 4.85 5.95 22.68 PDI .05 0.09 80.00 SDN 3.80 4.27 12.37 SDS 3.63 4.11 13.22 Source: DOT Caraga Total 23.86 28.07 17.64 Figure 26. Number of Flights, Caraga Region Source: BSP

Tourism

Preliminary tourism data released by DOT Caraga showed that less tourists have visited the region in Q1 2019 compared to the same period last year. The recorded tourist arrivals totalled only to 212,531, representing a huge decrease of 35.54 percent from 329,695 tourists of the same period in 2018 (Figure 25) . Source: CAAP – and Surigao

The domestic tourists, which encompassed Figure 27. Number of Passengers, Caraga Region 91.09 percent of the aggregate tourist arrival in the region, dropped by 36.89 percent as compared to the accomplishment generated in Q1 2018. Also, the number of foreign and overseas tourists plunged by 13.97 percent and 96.08 percent, respectively. Foreigners accounted 8.9 percent of the tourist arrival distribution.

Air Transportation Source: CAAP – Butuan and Surigao In Q1 2019, the region’s air traffic was reduced by 2.58 percent generating a lower number of Figure 28. Volume of Cargo, Caraga Region flights of 2,112 compared to the 2,168 flights in the same period last year (Figure 26) . This was largely attributed to the drop in the number of flights at Butuan airport, which declined by 42 percent relative to the its accomplishment in the same period in 2018. On one hand, the booming tourism industry in Surigao del Norte, particularly in Islands, resulted in the increase of flights at , which posted an increase of 36.15 percent despite the non-operation of the in said air facility. Source: CAAP – Butuan and Surigao

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2018 to 189,370 passengers in Q1 2019 in Q1 2019. This was mainly attributed to the (Figure 27) . Butuan City and 239.51 percent increase of bulk cargoes in airports recorded a rise in the number of shipment of sand and gravel in Masao port. passengers in Q1 2019, which grew by 9.82 Breakbulk cargoes also rose by 60.35 percent percent and 41.91 percent, respectively. as shippers opted for containerized shipments for safety purposes. Outbound cargo Outgoing passengers contributed to the growth specifically for banana contributed to the in Butuan City aiport’s air passenger by 23.47 increase in containerized cargo throughput by percent. Meanwhile, Surigao airport posted an 45.18 percent. increase of 47.66 percent in incoming air passengers and 34.76 percent in outgoing On foreign shipments, there were no registered passengers. imports under PPA Agusan on the first quarters of 2018 and 2019. However, exports declined Total volume of cargoes shrunk by 2.31 percent by 42.83 percent from 773,567 MT in Q1 2018 in Q1 2019, which summed up to 2,376,782 to 442,260 MT in Q1 2019. The decrease in kilos compared to 2,433,099 kilos in the same exports is due to reduced shipment of nickel period in 2018 (Figure 28) . Butuan City airport ores by SRMI and Agata Mining Ventures Inc. cargo performance posted a decline by 3.39 (AMVI), both operating in the Province of percent in Q1 2019 compared to Q1 2018 due Agusan del Norte. to the drop in the volume of outgoing cargoes by 9.12 percent. Surigao City, on the other Table 9. Sea Transportation Statistics hand, showed a significant surge of 465.71 Indicators Q1 2018 Q1 2019 Percent percent in the transported cargoes. The volume (%) of incoming cargoes grew by 512.50 percent, Change while outgoing cargoes rose by 393.41 percent. Number of Ship Calls Domestic 1,755 1,818 3.59 Foreign 16 11 (31.25) Total Sea Transportation Domestic Cargo Throughput (MT) Inbound 236 ,786 234,804 (0.84) The PPA-PMO of Agusan recorded an increase Outbound 120,762 206,284 70.82 in domestic ship calls by 3.59 percent in Q1 Foreign Cargo Throughput (MT) 2019, which totalled to 1,818 ship calls as Import 0 0 0 compared to 1,755 ship calls in Q1 2018 (Table Export 773,567 442,260 (42.83) 9) . The increase was attributed to high number Note: Lacking data for Surigao Ports of motorbanca voyages plying from Butuan to Sources: PPA – Agusan Magallanes and vice versa.

Meanwhile, foreign ship calls decreased by Land Transportation 31.25 percent or five (5) trips as San Roque Metals Inc. (SRMI) mining operations shifted to The region’s motor vehicle registration was up care and maintenance, and inclement weather by 13.80 percent, from 51,923 vehicles in Q1 such as typhoons resulted to suspension of 2018 to 59,087 vehicles of the same period in loading operations of foreign vessels. 2019 (Figure 29) . This was attributed to the increase in both new registration and renewals, Inbound domestic cargo throughput dropped by 0.84 percent in Q1 2019 due to major repairs Figure 29. Registered Vehicles, Caraga Region implemented in the ports of Masao and Butuan, which resulted to several vessels opted to docked at another ports, such as Port of Surigao and Port of de Oro. Also, the decrease in number of ships unloading refined petroleum products, cements, iron, steel and other chemical related products contributed to low domestic cargo throughput.

On the other hand, outbound domestic cargo throughput climbed 70.82 percent or 85,522 MT Source: PSA Caraga 13 | P a g e which increased by 8.68 percent and 15.91 percent, respectively.

In terms of vehicle classification, private Figure 30. Registered Vehicles, Caraga Region vehicles still comprise the large chunk of the region’s total vehicle registration at 92.02 percent, which is followed by for hire vehicles at 6.43 percent.

Government vehicles encompassed only by 1.55 percent. Private vehicles increased by 14.89 percent, an addition of 7,048 units in Q1 2019 compared to the same period in 2018. Meanwhile, for hire vehicles decreased by 4.33 percent. On the other hand, registration on government vehicles surged by 45.71 percent Source: PSA (Figure 30) .

About 60 percent of the registered vehicles were accounted in Butuan City. This was followed by Surigao City, which contributed 10.73 percent to the region’s total. Generally, all the provinces and cities’ vehicle registrations were up with the municipality of Dapa, Surigao del Norte exhibiting a substantial increase of 3,800 percent in vehicle renewals, from 21 . units in Q1 2018 to 817 units of the same period this year. This was attributed to the area being a top tourist destination of the country.

RISM

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PEACE AND SECURITY

Criminality

The region managed to curb criminality at the which reached 95 percent and 90 percent, local level with improved crime clearance and respectively. Agusan del Norte bettered the solution efficiency. The region’s total crime other provinces both the CCE and CSE, volume generally decreased by 9.04 percent, accomplishing 95 percent and 94 percent, from 2,322 crimes in Q1 2018 to 2,112 crimes respectively. in the same period in 2019 (Table 10) . This was due to the substantial reduction in both the Table 10.0 Crime Statistics, Caraga Region recorded incidents of index crimes 1 by 26.35 Indicator Q1 ‘18 Q1 ‘19 Percent (%) percent and non-index crimes 2 by 4.5 percent. Change All provinces in the region achieved a notable Index Crime contraction in crime volume with Agusan del Butuan City 84 63 (25.00) Sur posted the highest decline of 23.11 ADN 54 47 (12.96) percent. However, Butuan City yielded an ADS 155 73 (52.90) increase in its crime volume by 3.95 percent PDI 13 13 0.00 during the period. Among the provinces, SDN 116 103 (11.21) Dinagat Islands recorded the lowest crime SDS 60 56 (6.67) volume posted at 2.3 percent of the region’s Caraga 482 355 (26.35) total. Conversely, Agusan del Sur has the Non -Index Crime highest recorded crime volume with 25.5 Butuan City 346 384 10.98 percent. ADN 247 250 1.21 ADS 546 466 (14.65) Index crime accounted 16.8 percent of the PDI 45 36 (20.00) region’s recorded total crime incidents. Theft SDN 327 323 (1.22) and physical injuries were commonly SDS 329 298 (9.42) perpetrated among other index crimes in Q1 Caraga 1840 1757 (4.51) 2019, comprising 25.63 percent and 25.35 Crime Volume percent, respectively. However, both crimes Butuan City 430 447 3.95 significantly declined compared to the same ADN 301 297 (1.33) period last year. Physical injuries dropped by ADS 701 539 (23.11) 40.79 percent from 152 in Q1 2018, while theft PDI 58 49 (15.52) plunged by 27.78 percent from 126 in the same SDN 443 426 (3.84) SDS 389 354 (9.00) period last year. Robbery also decreased by Caraga 2322 2112 (9.04) 42.86 percent from 70 in Q1 2018 to 40 in Q1 Crime Clearance Efficiency (%) 2019. On the same period, no incident was on Butuan City 89 95 6 carnapping of motor vehicles and castle ADN 62 97 35 rustling. However, rape cases increased by ADS 72 94 22 25.53 percent from 47 in Q1 2018 to 59 in Q1 PDI 69 96 27 this year. About 27.11 percent of the 59 rape SDN 71 93 22 cases occurred in Surigao del Norte. SDS 77 95 18 Caraga 73 95 22 Moreover, the region achieved substantial Crime Solution Efficiency (%) improvement in crime clearance efficiency Butuan City 68 89 21 (CCE) 3 and crime solution efficiency (CSE) 4, ADN 58 94 36 ADS 67 88 21 PDI 50 92 42 SDN 63 87 24 1 PNP defined index crimes as crimes which are sufficiently SDS 61 90 29 significant and which occur with sufficient regularity to be Caraga 61 90 29 meaningful, such as murder, physical injury, robbery, theft and Source: PNP Caraga rape. 2 PNP defined non-index crimes as all types of crimes not considered as index crimes. 4 3 PNP defined CCE as the percentage of cleared cases out of the PNP defined CSC as the percentage of solved cases out of the total number of crime incidents handled by law enforcement total number of crime incidents handled by law enforcement agencies for a given period of time. agencies for given period of time. 15| P a g e

DEVELOPMENT PROSPECTS

Agriculture Development Tourism Development

• Ongoing projects under the Departnment • The PhP1.5 Billion Butuan-Magallanes A-Philippine Rural Development Project 7.55 km. road project is on track for (DA-PRDP) such as concreting of Ph completion in 2022 which will connect P204 Million 13.3 km farm-to-market road Centennial Tree and the beaches of the (FMR) at -San Luis, Agusan del municipality of Magallanes and Sur; concreting of PhP 129 Million 8.93 km City. The Centennial Tree is Mahapag-Doña Maxima FMR in San Luis, a top tourist spot in Agusan del Norte. Agusan del Sur; and construction of PhP (Source: Mike Crismund, 50.4 Million 4.76 km main canal with https://news.mb.com.ph/2019/02/27/p1-5-b-butuan- structures at Limbatangan CIS in Rosario, magallanes-road-project-on-track-for-completion-in- Agusan del Sur. (Source: Department of 2022/) Agriculture – Caraga Facebook Page) • Installation of Eco-Sep or the Eco-friendly • DA-PRDP conducted final inspection on Septic System in the municipality of the PhP 103 Million 9.4 km Magsaysay- as part to boost tourist attraction Bobonaon FMR rehabilitation and in the area. (Source: Dhel Nazario, concreting in , Surigao del Norte. https://news.mb.com.ph/2019/07/25/dost-launches- The road project together with the eco-sep-in-agusan-del-norte/) PhP 114 Million 9.0 km Sta. Cruz-Paco FMR would benefit 3,881 farming households. (Source: Department of Agriculture Infrastructure Expansion – Caraga Facebook Page) • Construction of a two-storey Government • DA Caraga extends PhP 2.1 Million Command and Control Center (GCCC) of agricultural interventions to Agusan del the Office of the Civil Defense Caraga Sur farmers including three (3) units Region at Brgy. Bancasi, Butuan City. mechanical rice transplanters. (Source: (Source: http://www.butuan.gov.ph/news/ground- Department of Agriculture – Caraga Facebook breaking-ceremony-construction-government- Page) command-and-control-center

• DA Caraga rice mechanization program • On-going Phase I construction of DPWH- turned over PhP 30.4 Million worth of 110 13 five-storey Regional Office Building at mechanical rice transplanters to 110 Brgy. Doongan, Butuan City. (Source: farmers association. (Source: Department of Department of Public Works and Highways – Agriculture – Caraga Facebook Page) Caraga Facebook Page)

Trade and Industry Hospital and Wellness Facilities

• Proposed Banana Chips Factory of Engr. • Construction of Butuan Adventist Wellness Bonpin in Butuan City. (Source: DTI-Caraga) and Medical Clinic, Inc. at Km. 3, Baan, Butuan City. (S ource: msbunnybxu post at • Proposed Expansion of Magellan https://www.skyscrapercity.com/showthread.php?t= Ceramica Enterprises of Butuan City. 1457541&page=68) (Source: DTI-Caraga) • Expansion of Surigao Medical Center • Establishment of Eastern Petroleum in through the construction of a new multi- Buenavista, Agusan del Norte . (Source: storey medical facility in Surigao City. DTI-Caraga)

• Oil Palm Crushing Plant in ,

Surigao del Sur. (Source: DTI-Caraga)

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Business Centers and Commercial Stores

• Vista Land & Lifescapes Inc. of Villar Group is set to complete a 20,000 sqm Vistamall Butuan located at Brgy. Ampayon, Butuan City. (Source: Standard Business, http://www.manilastandard.net/business/corporate/2 84664/vista-land-to-build-seven-new-malls-in-next- 2-years.html)

• Primeworld Land is set to establish a commercial and business district at Brgy.

Baan, Butuan City. (Source: msbunnybxu post at https://www.skyscrapercity.com/showthread.php?t= 1457541&page=68)

• Expansion of Robinsons Land Corporation’s Go Hotel facility in Butuan City.

• Construction of Citi Hardware store second branch at Brgy. Baan, Butuan City. (Source: msbunnybxu post at https://www.skyscrapercity.com/showthread.php?t= 1457541&page=69)

• Construction of a three-storey Imperial

Appliance Plaza located at JC Aquino

Ave., Butuan City. (Source: msbunnybxu post

at https://www.skyscrapercity.com/showthread.php?t= 1457541&page=69)

• Construction of HINO Butuan Showroom at Km. 5, National Highway, Libertad, Butuan City. (S ource: msbunnybxu post at https://www.skyscrapercity.com/showthread.php?t= 1457541&page=69)

Transportation

• Go , a subsidiary of Metro Shuttle, adds new Butuan City – Surigao City v.v. route from exisitng Butuan City – City route.

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