BAGUIO CITY – The Cordillera’s 6.9 percent economic growth last year was driven by the strong performance in the services sector which grew by 8.9 percent and industry sector which also increased by 4.3 percent.
However, Kalinga Gov. James Edduba, chairperson of the economic development committee of the Cordillera Regional Development Council (RDC-CAR) claimed that agriculture, forestry, and fishery sectors experienced a contraction of 1.3 percent.
He attributed the growth of the services sector last year largely to the thriving tourism industry which continues to expand where the region’s visitors numbers surged from 1.28 million in 2022 to 1.68 million last year, making a notable 31.1 percent increase in both domestic and international tourism. Last year, the tourism department accredited 772 primary tourism establishments which is up by 28 percent from 554 during the previous year. Further, 858 secondary tourism establishments were accredited, a 30 percent increase from 600 the previous year.
The governor claimed that the resurgence underscores the region’s growing appeal and highlights the varied tourism niches offered and hospitality industry’s pivotal role in providing accommodations, dining and transportation services, fueling economic activities across the region.
Moreover, the growth in wholesale and retail trade, along with financial and insurance activities, underscored the Cordillera’s increasingly favorable business climates, The region recorded growth in investments and loan availment, signaling heightened investor confidence. The government also continues the maturity of micro, small, and medium enterprises (MSMEs).
Edduba claimed that the Cashless Expo 2023 and the IMPAKABSAT business matching event, along with the promotion of innovation management standards like ISO 56002, are key government initiatives that have significantly enhanced the competitiveness of the region’s MSMEs by advocating for digitalization and e-commerce, that empowered MSMEs to innovate and thrive in the modern marketplace.
In 2023, the Department of Trade and Industry (DTI) assisted 29,761 clients and 27,698 MSMEs, processed 10,301 business name registrations and 552 MSME registrations, and conducted 337 training sessions across the region. It handled applications for permits, licenses, and accreditation for 165 services and repair enterprises, 6 private emission testing centers and 103 sales promotion activities.
According to him, complimenting the growth in the services sector is the sustained strong performance of the industry sector, which registered a 41.18 percent growth rate in 2023, manufacturing remains to be a key driver of the said sector and plays a crucial role in export production. The consistent demand for electronic and communication equipment highlights the manufacturing sector’s substantial contribution to exports.
Last year, the Philippine Economic Zone Authority (PEZA) exports surged by 17 percent totaling $1.3 billion. Computer, electronic and optical products saw 24 percent growth emerging as the region’s top exports.
Edduba stipulated that the region continues and expand its innovation ecosystem through partnerships among industry, academe and government entities. Programs such as the Department of Science and Technology’s local grants and aid and technology transfer and commercialization programs were sustained to support the region’s MSMEs.
Last year, the Cordillera approved and funded 27 research, development and innovation projects representing a 46 percent increase from the previous year. The said growth underscores the region’s commitment in fostering innovation and collaboration.
The Kalinga governor said that the region achieved gains in expanding inclusive and innovative financial management systems for economic development. The partnership between the Bangko Sentral ng Pilipinas and the Department of Agriculture through the Paleng-QR PH Plus Program exemplifies the government’s commitment to engage more stakeholders in the digital payment’s ecosystem. The BSP conducted 80 public information campaigns on financial literacy across all provinces, serving media practitioners, local government units, educators, students, cooperatives, MSMEs, and departing migrant workers.
Edduba emphasized that the vulnerability of agriculture, forestry and fishing to multi-dimensional shocks became evident last year as the sector’s performance slowed, reflecting the significant challenges it faces. The production of key food commodities such as rice, corn, and vegetables declined due to the impact of extreme weather events like Typhoons Egay and Falcon, southwest monsoon and El Nino during harvest seasons that saw a decrease in the area cultivated for the said crops, compounding the challenges faced by the said sector.
Subsequently, Edduba underscored that there were still gains in the agriculture sector where livestock and poultry production saw a modest increase as the region continues to recover from the African Swine Flu. High value crops production such as coffee increased by 2 percent as the region continues to grapple with low productivity, poor quality of planting materials, aging coffee trees, poor soil fertility, inadequate irrigation, and climate change. Robusta coffee from Kalinga was hailed as one of the best processed coffee during the 2023 Coffee Quality Competition.
The government also continues to encourage and provide support to young Agripreneurs to stay or return to agriculture. Three young agripreneurs from the region participated in the 2023 Young Farmers Challenge National Summit and one emerged as one of the winners of the upscale category. By Dexter A. See
