The national economy grew 6.6 percent in 2012, exceeding the government’s target of 5.0-6.0 percent. This is also a big improvement from the 3.9 percent growth in 2011. But despite the national economy performing beyond expectations, the CAR economy may still record a lower but still positive growth in 2012. The 5.2 percent drop in total electronics and semi-conductor shipments from year-ago levels is expected to contribute to lower growth in the region’s manufacturing sector. This is expected as the bulk of the region’s manufacturing is largely electronics and semi-conductor products for export.
The contraction in national mining and quarrying output is also expected to lower CAR’s growth in 2012. As host to the country’s largest operating mining firm, the tailings pond accident at Philex Mines that eventually lead to the suspension of its operations in the last months of 2012 is likely to result to lower industrial output.
The continued strength of the outsourcing industry in the region, as well as modest increases in agricultural production is expected to have kept the regional economy afloat. This is even as four major typhoons in August (Gener, Helen, Igme and Julian) that further induced the seasonal monsoon rains dampened regional agricultural production in 2012. Increased business activities resulting from increased confidence in the economic and governance reforms of the Aquino administration have also trickled to the local regional economy as reflected in increased revenue collections and investments.