By JOANNA DIAZ SABADO
SAN FERNANDO CITY, May 15 (PIA) – Ilocos Region posted a 3 percent increase in Gross Regional Domestic Product (GRDP) from 5.4 percent in 2015 to 8.4 percent in 2016, making the region the fifth fastest growing economy nationwide.
This was reported by Director Socrates Ramores of the Philippine Statistics Authority-Region 1 during the simultaneous news conference in all 17 regions recently.
“Our region’s economy in 2016 was above the national target of 6.9 percent economic growth,” Ramores said.
On the 8.4 percent growth rate in the region last year, the industry sector contributed largest at 4.7 percentage point while the services sector is at 4.1 percentage point and the agriculture, forestry and fishing sector registered a negative 0.4 percentage point.
The GRDP or the regional economy is the total production of goods and services in the domestic territory of the region.
“The 8.4 percent is the highest growth rate attained within the medium-term of the Philippine Development Plan 2011 to 2016 and within the Regional Development Plan target of 8.2 to 9.2 percent,” Regional Director Nestor Rillon of the National Economic and Development Authority- Region 1 said.
Rillon added, “The exceptional growth of the industry sector and the accelerated growth of the service sector fueled the robust performance of our economy indicating the great potentials of the sectors as drivers for the economic growth amidst a weak performance of the agriculture sector which is vulnerable to the changes in the region”.
Employment rate in the region also improved from 92 percent in 2015 to almost 94 percent in 2016.
The industry sector, which contributed 28.8 percent in the total regional economy, dramatically increased from 8.3 percent in 2015 to 17.93 in 2016 percent due to acceleration in construction industry.
Rillon explained that the “growth of the industry sector was mainly due to the remarkable performance of the construction sector like the construction and improvement of various roads leading to tourist destination areas, convergence program of Department of Tourism and Department of Public Works and Highways, construction of bypass and diversion roads including bridges to improve connectivity, and the number of residential buildings erected last year.”
Meanwhile, the agriculture, hunting, forestry and fishing industry further declined from negative 1.3 in 2015 to negative 1.8 in 2016 due to decline in its sub-industries, which accounted to 20.1 percent in the 2016 economic performance.
Ilocos region ranked seventh in terms of contribution to growth or 0.264 percentage points to the national GDP growth rate of 6.9 percent.
GRDP tells the government which policies and programs are effective in terms of improving the overall welfare and income of the people, determine whether certain infrastructure projects were able to facilitate trade and commerce, it can provide indication whether tax rate would have adverse effects to households, industries and the economy as well.
For more information and available data, visit www.psa.gov.ph. (JNPD/JDS/PIA1, La Union)
Originally published at http://news.pia.gov.ph/article/view/3151494536084/ilocos-region-ranks-5th-in-terms-of-grdp-in-2016