2017 ANNUAL Regional Economic Situationer (RES) an Annual Update on the Economic Performance of the Cagayan Valley Region
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CY 2017 ANNUAL Regional Economic Situationer (RES) An annual update on the economic performance of the Cagayan Valley Region A quick glance at Brief Summary Cagayan Valley’s The region experienced stronger In terms of employment situation, economy during CY 2017: performance in the industry and the region maintained a higher services sector for CY 2017, amidst employment rate (96.8%) and lower Macroeconomy some production setbacks in the underemployment rate (13.6%) Inflation Rate at agriculture sector. compared to the national level of 94.3 3.5% Unemployment percent and 16.1 percent, respectively. Rate at 3.2% The Cagayan Valley Region Underemployment maintained its top rank in corn and Given the gains during the year, the rate at 13.6% second spot in palay contributing 23.22 challenge for the region in the next Agriculture and percent and 13.78 percent share to Fishery year and beyond remains on Palay production national output, respectively. On the accelerating economic growth through up by 13.90% other hand., lower production levels further improvement of productivity Corn production are registered in fruits, vegetables and levels, increased inflows of up by 9.67% rootcrops, NFICC, poultry and fisheries investments, and availability of more Fruit production sectors. The decrement in HVCC down by 12.13% quality jobs. The resiliency of the Vegetable and root production was primarily attributed to sectors especially agriculture, as one of crop production the negative impact of a series of the drivers of growth and employment down by 2.60% Typhoons that hit the region in the in the region, should be supported and Non-food and previous year making the need to prioritized by government.# Industrial Commercial Crop rehabilitate damaged plantation areas a down by 13.91% priority concern. This resulted to lesser Livestock area harvested and productivity levels. Inside this issue: production up by 0.34% On Industry and Services sector, key Macroeconomy Poultry production 1 indicators recorded increased economic down by 2.76% Agriculture and Fishery Fisheries activities during the year. DTI‟s Business 2 production down Name Registration (BNR) posted higher Investments by 4.57% 6 number of firms, reflecting more Others Sectors Tourism Number of BNR up investments and jobs generated. 7 by 20.14% Indicators on the number and value of Transport and BNR investments construction, and non-metallic and Communication 8 up by 5.46% metallic productions also improved as Tourist arrivals compared to the previous year. Mining and Quarrying, down by 15.30% 8 Value of Investment climate in terms of security construction up by and peace and order also displayed Construction 9 15.83% lower crime volumes for the year. Non-metallic Peace and Order 9 production up by Prices of basic goods and services 28.83% Development Prospects Crime Volume measured by the inflation rate remained 10 down by 18.81% stable at 3.5 percent. Appendices 11 Acknowledgement of Data Providers We would like to thank the following agencies and institutions for continuously providing the necessary data and information for this report: Agency/ Institution Data Provided Bureau of Internal Revenue (BIR) Tax Revenue Collections Regional Office 02 Bangko Sentral ng Pilipinas (BSP) Business Confidence Index; Tuguegarao Branch Distribution of Banking Offices Civil Aviation Authority of the Philippines Air Transport Statistics NEDA Region 02 (CAAP) Tuguegarao Branch Policy Formulation Department of Environment and Natural Mining and Quarrying Statistics and Planning Division Resources—Mines and Geoscience Bureau (DENR-MGB) Regional Office 02 #1 Dalan na Pavurulun, Regional Government Center, Department of Tourism Tourism Statistics Carig Sur, Tuguegarao City Regional Office 02 Phone: (078) 304-9300 Department of Trade and Industry Business Name Registration (BNR) Statistics Fax: (078) 304-1243 Regional Office 02 E-mail: [email protected]; Landbank of the Philippines (LBP) - Outstanding Loans and Loan Releases [email protected] Cagayan Lending Center Isabela Lending Center, Nueva Vizcaya Lending Center Philippine National Police (PNP) Crime Statistics Regional Office 02 Philippine Statistics Authority (PSA) Agriculture and Fisheries Production; Regional Office 02 Construction Statistics CPI and Inflation Rate; Labor Force Survey Visit our website f o r m o r e publications and PSA Data Schedule of Release (1st Quarter, 2018) news articles: Expected Date of Release RDC W EBSITE: Agriculture and Fisheries Production May 8, 2018 http:// rdc.rdc2.gov.ph NEDA W EBSITE: Construction Statistics June 2018 h t tp :// CPI and Inflation neda.rdc2.gov.ph January February 6, 2018 RPMES W EBSITE : February March 6, 2018 http:// rdc.rdc2.gov.ph March April 5, 2018 Labor Force Survey (January Reference March 7, 2018 Period) ARES CY 2017 I Page i i MACROECONOMY Inflation For CY 2017, the average inflation rate rose to 3.5 percent or an uptick of 0.5 percentage Table 1. Inflation Rate, Region 02, point from last year's 3.0 percent. This was CY 2016 and CY 2017 attributed to the registered increases in the price indices of several food commodities (e.g., rice, Commodity Group 2016 2017 corn, bread and cereals, etc.), tobacco, electricity, All Items 3.0 3.5 gas and other fuels, and education. On one hand, the inflation rate of Region 02 remained stable I. Food and Non- and within the expected inflation range for the Alcoholic Beverages 3.5 3.5 year set by the government at 3.0 to 5.0 percent. Food 3.7 3.7 Annual food inflation remained at 3.7 percent Non-Alcoholic 1.4 0.9 this year. However, notable increases in various Beverages food commodities were observed such as the II. Alcoholic Beverages 6.9 10.9 uptick on the price of rice, corn, meat, fish, and and Tobacco fruits due to increased demand during the holiday III. Non– Food season. The high price index of tobacco from 9.8 2.0 2.8 percent to 16.2 percent was also observed given Clothing and Footwear 2.0 2.5 the implementation of the unitary excise rate for Housing, Water, cigarettes at the start of the year. Electricity, Gas, and 0.7 3.3 Other Fuels Meanwhile, most of the commodity groups under the non-food subgroup showed lower Furnishings, Household Equipment and Routine annual rates than last year. However, a 3.1 2.7 Maintenance of the remarkable increase was posted on electricity, gas House and other fuels from negative 4.0 percent to 7.3 Health 3.9 3.8 percent due to the price adjustments in the world Transport 2.1 1.1 market for petroleum products as well as the Communication -0.2 0.0 effect of the implementation of the Tax Reform Recreation and Culture 1.3 0.6 for Acceleration and Inclusion (TRAIN) Law beginning 2018, this putting higher excise taxes Education 1.4 3.3 on fuel especially on gasoline and diesel. Restaurants and Miscellaneous Goods 4.6 3.2 Based from the oil monitoring reports of the and Services Department of Energy (DOE), oil prices increased at the end of trading days in December as OPEC- Source: PSA RO2 led supply cuts are continuously imposed. For the period 2018-2022, the government, through the increases in international commodities. The rate BSP, targeted the inflation to settle within 2.0 - of increase is however seen to be within 4.0 percent range. The BSP forecasts that manageable level for 2018 given strong inflationary pressures may occur especially on macroeconomic fundamentals, sustained food and oil commodities brought by transitory investment spending by the government and impact of the TRAIN Law implementation, trend other measures to address risks to inflation. of the oil market overseas, and potential ARES CY 2017 I Page 1 MACROECONOMY Employment The preliminary estimates of the annual Labor Table 2. Selected Employment Indicators, Force Survey (LFS) showed that there were more Region 02, CY 2016 and CY 2017 working age population for the year at 2.366 million compared to the previous year‟s 2.339 million. 2016 2017 Working Age Population („000) Out of this total household population of 15 years 2,339 2366 old and over, the active workforce was recorded at Labor Force Participation Rate (%) 65.5 63.4 1.5 million persons, or lower than what was Employment Rate (%) 96.9 96.8 registered in 2016 by 2.09 percent. This corresponds Underemployment Rate (%) 12.7 13.6 to a labor force participation rate of 63.4 percent, a Unemployment Rate (%) 3.1 3.2 little lower from last year's 65.5 percent. Source: PSA RO2 2017 Annual Preliminary Estimates Note: While data were compared from the 2016 annual LFS, cau- The employment level, on the other hand, reached tion should be made in the analysis due to the changes in the meth- odology of the LFS beginning April 2016 round. 1.452 million, thus, reflecting an employment rate of 96.8 percent from last year's 96.9 percent. Consequently, the number of unemployed persons Despite increases in employment and slightly rose to 48 thousand from 47.5 thousand underemployment, the employment situation in persons. For this year, unemployment rate stood at Cagayan Valley Region is relatively better than the 3.2 percent, slightly higher than last year's 3.1 percent. national average. Data shows that the region The Region also needs to intensify its efforts in continue to surpass the national level creating quality jobs as the total number of persons employment rate of 94.3 percent, and lower than who expressed desire for more hours of work also the national underemployment rate of 16.1 percent increased to 197 thousand from last year's 189 and unemployment rate of 5.7 percent. thousand, or translating to an increase in underemployment rate to 13.6 percent from 12.7 in 2016.