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Regional Economic Situationer Fourth Quarter 2020

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Regional Economic Situationer Fourth Quarter 2020 Tel (43) 288-6115 E-mail: [email protected] Fax (43) 288-6124 Website: mimaropa.neda.gov.ph REGIONAL ECONOMIC SITUATIONER FOURTH QUARTER 2020 I. Macroeconomy A. Prices, CPI, and Inflation Rate MIMAROPA’s average inflation rate significantly increased to 3.7 percent in October to December 2020 from previous year’s 1.8 percent. This was also higher than the previous quarter’s 3.1 percent. All provinces registered higher inflation rates. Marinduque registered the highest inflation rate with 7.1 percent. This was followed by Occidental Mindoro and Oriental Mindoro with 5.0 percent and 3.7 percent, respectively. Palawan recorded the lowest inflation rate with 2.6 percent (refer to Figure 1). For three consecutive months, increases in monthly inflation rates were recorded: 2.5 percent in October; 3.3 percent in November; and 3.5 percent in December. These were higher than the inflation rates recorded in 2019 at 0.8 percent in October; 1.3 percent in November; and 2.5 percent in December. This may be attributed to the price increase of all commodity groups, particularly the 7.11 percent and 5.71 percent annual increment recorded in health and transport indices, respectively. Figure 1. Inflation Rate by Quarter and Province, MIMAROPA, 2019-2020 8.0 6.8 7.1 7.0 6.0 5.0 5.0 3.7 3.7 4.0 3.4 3.3 3.3 3.1 2.9 2.6 2.6 2.7 3.0 2.2 2.4 1.8 1.8 2.0 1.0 1.0 0.0 MIMAROPA Marinduque Occidental Oriental Palawan Romblon Mindoro Mindoro Q4 2019 Q3 2020 Q4 2020 Source: Philippine Statistics Authority (PSA) MIMAROPA All commodity groups registered upward price movements compared to previous year’s index levels, which contributed to the region’s 3.7 percent average inflation rate in October-December 2020 (refer to Table 1). Alcoholic beverages and tobacco’s index rose 15.67 percent in October-December 2020 compared to that of the previous year. It also recorded the highest CPI of 250.3. Increases in the indices of clothing and footwear at 5.50 percent and housing, water, electricity, gas, and other fuels at 4.40 percent also contributed to the October- December 2020 inflation. On the other hand, communication registered the lowest CPI of 104.1. Table 1. Consumer Price Index, Inflation Rate, and Purchasing Power of Peso, MIMAROPA, 2019-2020 Period Percent Change Item 2019 2020 (2020/2019) Q4 Q3 Q4 Average Consumer Price 123.8 126.2 128.4 3.74 Index (All Items) Food 127.9 128.0 130.7 2.19 Food and Non-Alcoholic 128.6 128.7 131.4 2.15 Beverages Alcoholic Beverages and 216.4 242.9 250.3 15.67 Tobacco Non- Food 115.9 119.5 121.1 4.46 Clothing and Footwear 116.4 121.3 122.8 5.50 Housing, Water, Electricity, Gas, and 117.4 121.1 122.5 4.40 Other Fuels Furnishing, Household Equipment and Routine 117.3 120.9 122.1 4.09 Maintenance of the House Health 115.3 120.8 123.5 7.11 Transport 112.1 116.6 118.5 5.71 Communication 102.6 103.3 104.1 1.43 Recreation and Culture 115.1 115.4 116.1 0.93 Education 118.0 118.1 121.6 3.05 Restaurant and Miscellaneous Goods 118.8 122.0 123.7 4.12 and Services Average Inflation Rate 1.8 3.1 3.7 1.90 (percent) Average Purchasing Power 0.81 0.79 0.78 (3.70) of Peso Source: Philippine Statistics Authority (PSA) MIMAROPA In terms of selected food items, food products (not elsewhere classified) recorded the highest increase in index at 11.4 percent in October-December 2020. This was followed by increase in indices of corn and vegetables with 10.0 percent and 5.6 percent, respectively. Price indices of all selected food items increased except with fish and seafood, where price index decreased by 1.3 percent. The purchasing power of peso in the region decreased from last year’s 0.81 to 0.78. B. Labor and Employment Table 2. Labor and Employment Statistics, MIMAROPA, 2019 -2020 Percent October July October Change/ ITEM 2019 2020 2020 Difference (2020/2019) Population 15 years old & above 2,028 2,049 2,055 1.3 (in ‘000) LF Participation Rate (%) 58.8 64.2 62.0 3.2 Employment Rate (%) 96.3 94.3 92.1 -4.2 Unemployment Rate (%) 3.7 5.7 7.9 4.2 Underemployment Rate (%) 15.9 27.2 22.2 6.3 Source: PSA MIMAROPA The region’s working age population increased by 1.3 percent from 2,028,000 in October 2019 to 2,055,000 in October 2020. Labor force participation rate increased by 3.2 percentage points from 58.8 percent in October 2019 to 62.0 percent in October 2020. Employment rate decreased by 4.2 percentage points from 96.3 percent in October 2019 to 92.1 percent in October 2020. The region’s employment rate was higher by 0.8 percentage point compared to the national average employment rate of 91.3 percent. The region’s unemployment rate of 7.9 percent was lower by 0.8 percentage point compared to the national average unemployment rate of 8.7 percent. This was, however, higher by 4.2 percentage points compared to October 2019’s 3.7 percent. Underemployment rate increased by 6.3 percentage points from 15.9 percent in October 2019 to 22.2 percent in October 2020. This was also higher by 7.8 percentage points compared to the national average underemployment rate of 14.4 percent. II. Agriculture and Fisheries The total agriculture production declined by 9.20 percent, from 1,420,843.29 metric tons outputs during the fourth quarter of 2019 to 1,290,102.01 metric tons in the same quarter of 2020. The crops subsector registered a 9.53 percent decrease in outputs during the quarter but remained to be the biggest contributor to the agriculture sector, with a 77.31 percent of the region’s total agriculture production. Notable decreases were recorded in the production of palay, banana, calamansi, and cassava. The livestock and poultry subsectors recorded a 4.51 percent decrease in outputs, contributing 2.34 percent of the region’s total agricultural outputs during the quarter. Notable decreases were recorded in the production of cattle, duck, and duck eggs. The fisheries subsector recorded a decrease in outputs by 8.45 percent. The subsector contributed 20.35 percent to the total agricultural production during the quarter. A. Cereals Palay posted double-digit decrease in production of 11.93 percent, from 659,346 metric tons during the fourth quarter of 2019 to 580,686 metric tons in 2020. Occidental Mindoro and Oriental Mindoro were the highest contributors to the region’s palay production with a share of 33.76 percent and 33.18 percent, respectively. Only the provinces of Marinduque and Romblon recorded an increase in palay production of 27.42 percent and 2.24 percent, respectively. Table 3. Palay production, MIMAROPA, 2019-2020 Percent 4Q 2019 4Q 2020 Province Change (MT) (MT) (2020/2019) Marinduque 4,146 5,283 27.42 Occ. Mindoro 261,661 196,048 (25.08) Or. Mindoro 199,153 192,655 (3.26) Palawan 177,088 169,014 (4.56) Romblon 17,298 17,686 2.24 Total 659,346 580,686 (11.93) Source: PSA MIMAROPA Note: Preliminary data as of February 15, 2021 Corn production slightly increased by 0.18 percent, from 12,654 metric tons in 2019 to 12,677 metric tons in 2020. All provinces of MIMAROPA recorded decrease in corn production except for the province of Palawan which also contributed 47.98 percent of the region’s total corn production. Table 4. Corn production, MIMAROPA, 2019-2020 Percent Province 4Q 2019 4Q 2020 Change (MT) (MT) (2020/2019) Marinduque 227 152 (33.04) Occ. Mindoro 4,440 4,243 (4.44) Or. Mindoro 2,008 1,888 (5.96) Palawan 5,601 6,082 8.59 Romblon 378 312 (17.46) Total 12,654 12,677 0.18 Source: PSA MIMAROPA Note: Preliminary data as of February 15, 2021 B. Major Crops Banana production dropped by 50.63 percent compared to the outputs during the same quarter last year. Saba remains the dominant variety of banana being produced in the region accounting 65.57 percent share of the total banana production. This was followed by Latundan and Lacatan with a share of 16.43 percent and 13.81 percent, respectively. Calamansi production also dropped by 44.25 percent, from 669.84 metric tons in the fourth quarter of 2019 to 1,201.45 metric tons in the same quarter of 2020. Mango production went up by 2.57 percent, from 133.99 metric tons in the fourth quarter of 2019 to 137.43 metric tons in the same period in 2020. This may be attributed to the increase in the production of carabao mango by 5.29 percent. Piko and Carabao were the dominant mango varieties produced in the region with 47.77 percent and 43.28 percent share, respectively. Coconut production slightly decreased by 1.86 percent, from 383,098.70 metric tons in 2019 to 375,983.51 metric tons in the fourth quarter of 2020. Moreover, the production of cassava in the region also decreased by 28.22 percent in the same period, from 5,028.49 metric tons in 2019 to 3,609.58 in 2020.
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