Catanduanes posted the highest per capita Gross Domestic Product (GDP) among the six Bicol provinces but its economy’s growth of 6.0 percent in 2022 was still the slowest in the region, the Philippine Statistics Authority (PSA) said in a report last week.
In her report during the Dissemination Forum on tje 2018-2022 Provincial Product Accounts of Catanduanes held Dec. 11, 2023 at Queen Maricel Inn in Virac, PSA Catanduanes Chief Statistical Specialist Anavi Camacho disclosed that the figure is higher than the recorded growth rate of 5.7 percent in 2021 at the height of the COVID-19 pandemic.
She added that the Gross Domestic Product (GDP) of the province was valued at P28.80 billion in 2022, compared to P27.17-B in the previous year and far higher than the pre-pandemic GDP level of P27.65 billion in 2019. The data is based on constant 2018 prices.
The GDP is a comprehensive measure of economic activity and represents the value of all final goods and services produced within the economy in a given period of time.
On the other hand, the per capita GDP growth rate of Catanduanes was recorded at 5.2 percent, with the per capita GDP of P103,970 in 2022 the highest in the Bicol region. Per capita GDP represents the estimated average contribution of each individual to the GDP of the province.
Rebounding from the 43 percent contraction in 2021, Agriculture, forestry, and fishing grew by 15.8 percent last year while Services accelerated by 8.2 percent, up from 5 percent in the previous year.
Among Services, Transportation and storage registered the highest growth at 33.7 percent, followed by Other Services at 21.8 percent; and Accommodation and food service activities at 11.2 percent.
Industry decelerated by 2.5 percent in 2022, with slowdowns noted in Mining and quarrying (4.6 percent), Manufacturing (3.3 percent), and Construction (2.7 percent) along with Electricity, steam, water, and waste management (-2.7 percent).
Construction with P9.4-B accounted for the largest share in the P28.8-B economy of Catanduanes at 32.7 percent, followed by Manufacturing (P3.1-B) at 10.9 percent, and Wholesale and retail trade; repair of motor vehicles and motorcycles (P2.9-B) at 10.1 percent. These three industries comprised more than half of the total GDP of the province, with the rest of the remaining industries with shares below 10 percent.
The island province’s economy accounted for only 4.9 percent of the regional economy which was estimated at P583 billion, with Camarines Sur having the largest share at 33.4 percent, followed by Albay with 24.9 percent.
In terms of growth rate, all economies in the region expanded in 2022, with Sorsogon recording the fastest growth of 12.2 percent, followed by Camarines Sur with 8.6 percent. Masbate, Albay, and Camarines Norte posting growths of 7.3 percent, 6.8 percent, and 6.6 percent.
In her statement on the economic performance of the province, Provincial Planning and Development Coordinator Engr. Elsie Reyes attributed the slight increase in GDP for 2022 to the boom in the services sector due to the lifting of COVID-19 travel restrictions.
The agriculture, forestry and fishery sector made a significant contribution, she added, despite the decrease in the demand for abaca in the world market.
“Due to the geographic location of Catanduanes, the island province is basically beyond the loop of development mainstream and is benefiting less from economic positives that naturally would result from population movement and traffic of goods and services, even from national development initiatives,” Reyes stressed.
It is for this reason that the economic growth and development of the province will depend largely on its resource strengths and potentials on which the province enjoys comparative advantage, she pointed out.
As the situation and challenges are largely agricultural in character, long-term economic development, especially production, practices and technologies, should not lead to over-exploitation of resources and environmental degradation, PPDC Reyes urged.
She disclosed that the provincial government had crafted a Provincial Commodity Investment Plan focusing on five (5) priority commodities: abaca, mangrove crab, swine, native chicken and dairy cattle.
The plan is aimed at improving the backward and forward linkages of primary industries such as access roads, farm-to-market roads, and freight and handling costs of local products to reduce production cost; improve resource management to a sustainable base; correct distortions in the local market that shortchange local farmers, fisherfolk and other stakeholders; implement strategies to improve product quality; and improve productive capacity and competitiveness of stakeholders.
Reyes said that through the plan, the province was able to access funding from the World Bank, through the Department of Agriculture in improving access roads to production areas as well as in providing support facilities to private enterprises engaged in the priority commodities.
The province is also crafting its Local Investment Incentives Code which will promote a conducive investment climate to private investors, she said.
“Given the economic performance, and the current investment climate, it is expected that the provincial economy will likely improve in the next coming years,” the PPDC stated.
Also present during the forum were Chief Statistical Specialist Florande Polistico of the PSA central office’s Production Accounts Division, CSS Danilo Luceña of PSA Bicol, and Provincial Agriculturist Ace William Tria who represented Governor Joseph Cua.
During the open forum, CSS Polistico clarified that despite Catanduanes’ having the highest per capita GDP in the Bicol region, the statistic has no relationship with the incidence of poverty in the province although there is evidence that sustained economic growth will eventually lead to a decline in poverty incidence.
“That would depend on compensation for each household,” he stressed. “It would not be automatic but it can happen.”
The GDP only refers to production per capital but increased economic activity translates to higher employment and higher income, which is better for the local economy,” Polistico said.
On the other hand, Luceña said the GDP data is used as input in the preparation of provincial development plans and reports for planning purposes.
In a video message, National Statistician and Civil Registrar General Claire Dennis Mapa said the provincial accounts is in response to the demand from legislators and the private sector for more granular economic statistics.
The PSA is on track on its goal of institutionalizing all product accounts of all provinces and highly urbanized cities by 2025 by strengthening LGU capacities as data providers and users, he added.
The Philippine Statistics Authority (PSA) established through Republic Act No. 10625, otherwise known as the Philippine Statistical Act of 2013, is tasked, among others, to compile and maintain macroeconomic accounts and indicators, at the national and subnational level.