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Third Quarter of 2019

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Third Quarter of 2019 TABLE OF CONTENTS I. Macroeconomic Performance . 1 Inflation Rate . 1 Consumer Price Index . 1 Purchasing Power of Peso . 2 Labor and Employment . 3 II. Agriculture, Forestry and Fishery Sector Performance . 4 Crops . 4 Palay . 4 Local Prices of Palay and Regular Milled Rice . 5 Rice Stock Inventory, Procurement and Distribution . 5 Corn . 6 Fruit Crops . 7 Vegetables . 7 Non-food Industrial and Commercial Crops . 8 Livestock and Poultry . 9 Fishery . 9 Forestry . 10 III. Trade and Industry Services Sector Performance . 11 Business Name Registration . 11 Export . 12 Import . 12 Manufacturing . 12 Mining . 13 IV. Services Sector Performance . 15 Tourism . 15 Air Transport . 15 Sea Transport . 16 Land Transport . 17 V. Peace and Security . 18 VI. Development Prospects . 20 MACROECONOMIC PERFORMANCEBOR Inflation Rate Figure 1. Inflation Rate, Caraga Region The region recorded a very low inflation in Q3 2019, which pegged at an average of 0.83 percent with the month of September posting as low as -0.3 percent (Figure 1). On a year- on-year basis, the region’s inflation exhibited a downward trend for the entire months in Q3 2019, which was inversely proportional to its performance in the same quarter in 2018. On the average, the region’s inflation waned by 4.3 percentage points in Q3 2019 from 5.1 percent Source: PSA in the same period in 2018 (Figure 2). Consequently, the region’s average inflation Figure 2. Inflation Rate by Province and Caraga Region for Q3 2019 was lower than the national average, which ranged from 2 percent to 4 percent. Contributing to the declining trend of the region’s inflation was the drop in the annual rate of change of the overall price index of heavily weighted food and non-alcoholic beverages by 0.86 percent. Likewise, the year- on-year rate of change in the average index of transport services decreased by 0.81 percent. Source: PSA A slower annual increment was also noted in the mean indices of some commodity groups, of Dinagat Islands indicated the highest such as alcoholic beverages, tobacco and inflation among the provinces with 2.37 other vegetable-based tobacco products; percent, which was within the national inflation clothing and footwear; and housing, water, range for the period. electricity, gas and other fuels. Meanwhile, some commodity groups, Consumer Price Index particularly under non-food items displayed year-on-year increases in the mean price The region’s average consumer price index indices, such as in furnishing, household (CPI) continued to move up, which year-on- equipment and routine; health; communication; year average cost for all items slightly went up recreation and culture, education and by about 1.0 index point, from 118.4 in Q3 2018 restaurants. On education services’ price to 119.4 Q3 2019 (Figure 3). Except for food index, an abrupt upturn was noted in its annual and non-alcoholic beverage products and rate of increment despite the implementation of transport, the price indices for the rest of the the Republic Act No. 10931 (Universal Access commodity groups grew during the period. The to Quality Tertiary Education Act) that provides highest CPI increment was noted in alcoholic free tuition. The inflation rate in education beverages, tobacco and other vegetable- accelerated at an average of 9.9 percent in Q3 based tobacco by 18.1 index points, from 155.2 2019 from -9.0 percent in Q3 2018 on account in Q3 2018 to 173.23 in Q3 2019. This was of higher price index in primary and secondary ascribed to the implementation of RA No. education services. 10963 (The Tax Reform for Acceleration and Inclusion Act) and RA No. 10351 (The Sin Tax At the provincial level, all provinces exhibited Law of 2012), which imposed higher tax rates low inflation rates in Q3 2019 relative to the for such commodity groups. Moreover, the same period in 2018. Among them, Agusan del average cost of education services was also up Sur displayed the lowest average inflation, which recorded at -0.30 percent. The Province Page 1 of 21 by 9.8 index points, generating an average Figure 3. Consumer Price Index, Caraga Region price index of 109.07 in Q3 2019 from an average of 99.2 in Q3 2018. The surge in the average CPI of education services was attributed to high costs recorded in primary and secondary educations. Meanwhile, the costs of food and non-alcoholic beverages and transport further eased by 1.1 index point and 0.9 index point in Q3 2019 compared to the average CPI in Q3 2018. The reduction in the year-on-year average price index of food items was attributed to the Source: PSA decline in the costs of bread, cereals products, sugar and confectionary products. On the other hand, the drop in the average CPI in transport Figure 4. Consumer Price Index by Province services was ascribed to a hefty reduction of 64.33 index points in the overall transportation cost of passenger sea transport and inland waterway, from 139.6 in Q3 2018 to 75.27 in Q3 2019. With regards to provinces, Surigao del Sur posted the highest year-on-year mean CPI for all commodity items at 124.1 in Q3 2019, representing an increase of 1.5 index points relative to its CPI in Q3 2018. Contributing to Source: PSA this growth in the province’s CPI was the surge in the average price indices of some commodity groups, such as alcoholic Purchasing Power of Peso beverages, tobacco and other vegetable- tobacco products by 19.73 index points; The region’s purchasing power of peso (PPP) furnishings, household equipment and routine to a dollar steadily maintained at an average of households by 8.27 index points; recreation PhP0.84 centavos to a dollar, as its inflation and culture by 5.30 index points; and rate declined during the entire months of Q3 restaurants and miscellaneous by 6.90 index 2019. This implies that a consumer could only points. buy PhP 84.0 worth of goods for PhP 100.0 at 2012 constant prices. On a year on year basis, In terms of annual increase in the average CPI, the average PPP in Q3 2019 was slightly lower the Province of Dinagat Islands recorded the compared to the value of peso in the same highest among other provinces by 2.8 index period in 2018, which posted an average of points, from 117.0 in Q3 2018 to 119.8 in Q3 PhP 0.843 to US $1.0. 2019. The huge increase in the year-on-year mean CPI of both education services (14.03 Figure 5. Purchasing Power of Peso, Caraga Region index points) and tobacco and alcoholic beverages (18.43 index points) in Q3 2019 attributed to the rise in the mean CPI of the province. For education services, the cost of secondary education services in the province went up from 127.5 in September 2018 to 140.0 in the same month of 2019. Agusan del Sur’s CPI decelerated by 0.4 index points in Q3 2019 to 118.0 from 118.4 in Q3 2018. This was mainly attributed to lower average cost in food and non-alcoholic beverages, especially on corn, rice, oils and Source: PSA fats. Page 2 of 21 Labor and Employment The region’s labor force accelerated by 2.53 percent to reach 1.943 Million in Q3 2019 from 1.895 Million in the same period last year (Table 1). Consequently, labor force participation rate slightly increased by 0.7 percentage point, from 62.7 percent in Q3 2018 to 63.4 percent in Q3 2019. However, employment rate fell by 0.8 percentage point, from 95.9 percent in Q3 2018 to 95.1 percent in Q3 2019. This resulted in the rise of unemployment rate to 4.9 percent during the period. Meanwhile, the region’s underemployment significantly reduced by 7.40 percentage points to end at 17.8 percent in Q3 2019. Table 1. Labor and Employment, Caraga Region Indicator Q3 ‘18 Q3 ‘19 Percent (%) Change Labor Force (in 1.895 1.943 2.53 Million) Labor Force 62.7 63.4 0.70 Participation Rate Employment Rate 95.9 95.1 (0.80) Unemployment Rate 4.1 4.9 0.80 Underemployment 25.2 17.8 (7.40) Source: PSA Page 3 of 21 AGRICULTURE, FORESTRY AND FISHERY SECTOR PERFORMANCEBOR AND EMPLOYMENT Figure 6. Palay Production by Province Crops Palay The region’s aggregate palay production notably contracted by 21.45 percent, producing a lower aggregate output of 27,342.30 MT in Q3 2019 compared to 34,808.83 MT in Q3 2018 (Figure 6). Except for Surigao del Norte, the rest of the provinces experienced a decline in palay production with the highest drop noted in Agusan del Sur at 70.54 percent. Meanwhile, Surigao del Norte’s palay production grew by Source: PSA 7.98 percent during the period. However, the increase in its palay production failed to offset Figure 7. Palay Area Harvested by Province the reduction generated in palay production of other provinces, as its production output comprised only 30 percent of the region’s total produce. The considerably high reduction in the region’s total planted areas to palay by roughly 27 percent contributed to the lower palay production output, which plunged from 11,662 hectares in Q3 2018 to 8,555 hectares in Q3 2019 (Figure 7). Among the provinces, only Surigao del Norte displayed an expanded palay area harvested by 7.05 percent. The rest of the provinces have experienced a significant drop in areas planted to palay with the largest slump Source: PSA recorded in Agusan del Dur of approximately 72 percent.
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