Bicol economy slows down in 2014

The Bicol Region’s economy posted the biggest slowdown or deceleration nationwide last year at 4.2 percent from 8.1 percent in 2013 or a decline of 3.9-percentage points, the Philippine Statistics Authority (PSA) Bicol regional office reported Thursday.

Bicol economy slows down in 2014

The PSA said the major economic sectors in Bicol eased out last year, causing the significant plunge in its economy.

Services sector accounted for the biggest share to the region’s economy at 56.6 percent.

Agriculture, Hunting, Forestry and Fishing’s (AHFF) share was at 23.7 percent and Industry, 19.8 percent, the data agency said.

Based on the the PSA report, Services decelerated to 5.2 percent in 2014 from 9.0 percent in the previous year.

The sector’s decline was caused by slowdown in the following sub-sectors: Real Estate, Renting and Business Activities (RERBA) from 17.2 percent to 2.5 percent; Financial Intermediation, from 14.7 percent to 10.2 percent; Other Services, from 4.1 percent to 1.1 percent; Transportation, Storage and Communication (TSC) from 5.2 percent to 3.7 percent; and Trade, from 11.5 percent to 10.0 percent.

The sub-sector Public Administration and Defense, Compulsory Social Security (PAD), however, accelerated to 6.3 percent from 4.4 percent during the previous year.

The AHFF sector decelerated to 0.9 percent in 2014 from 4.4 percent in 2013 as Agriculture and Forestry posted slower growth of 1.8 percent compared to 5.4 percent in 2013.

The AHFF’s slowdown was largely due to Fishing, which plunged to negative 1.3 from 2.0 percent in 2013.

Even the Industry sector also registered a downtrend at 5.6 percent in 2014 from 10.8 percent in the previous year even as Manufacturing sub-sector swelled from 9.6 percent in 2013 to 19.0 percent in 2014.

Sub-sector Electricity, Gas and Water Supply (EGWS) accelerated slightly to 13.7 percent from 12.1 percent but Construction slackened from 15.1 percent two years ago to 4.5 percent last year while Mining and Quarrying (MAQ) declined further from 5.1 percent to 25.0 percent.

Over-all Services sector was the top contributor to the region’s economic growth with 2.9-percentage points. Industry and AHFF contributed 1.1-percentage points and 0.2-percentage point, respectively, for a total of 4.2 percent, the statistics authority said.

Nationwide, the country’s economy posted a 6.1-percent growth in 2014, which is also a slowdown from its 7.1-percent growth in 2013.

The deceleration was due to the slower growths of Industry and Services, it added.(PNA) 

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