Regional Economic Situationer (2nd Quarter 2011)
Cordillera Administrative Region
Growth of the Philippine economy further eased to 3.4 percent in the second quarter from a revised 4.6 percent in the first quarter, bringing the country’s first semester growth at an average 4.0 percent. Second quarter growth was aided specifically by the rebound in agriculture production and the modest expansion of the services sector.
In CAR, leading economic indicators continue to show a resilient regional economy with the agriculture and mining sectors registering upbeat year-on-year performances despite the slowdown in PEZA exports, tourist arrivals and regional revenue collection.
Assessment of the 2nd Quarter 2011 Regional Economic Performance
The region’s agriculture sector performed creditably this quarter with increased year-on-year production of the region’s major agricultural crops specifically palay, corn, fruits and vegetables including poultry and fisheries.
Regional palay production increased by 19.6 percent year-on-year, reaching 130,348 metric tons due to an increase in harvested areas and improved yield. Expansion of harvested areas in turn was a result of the increase in irrigated area primarily through the rehabilitation and repair of irrigation facilities. Kalinga and Apayao, the main rice growing areas in the region, increased their production by 28.6 and 9.5 percent, respectively accompanied by improved harvests from the rest of the provinces.
Total corn production more than doubled year-on-year reaching 26,669 metric tons this quarter compared to just 10,526 metric tons in the same quarter last year primarily due to an increase in area harvested and improved yield. The sharp increase in corn output was largely accounted for by increased production from Kalinga totalling 7,524 metric tons this quarter compared to just 125 metric tons last year. Still, Apayao remains the biggest corn producer with an output of 11,698 metric tons this quarter from 8,054 metric tons last year.
First semester palay and corn output were both up 13.0 and 18.0 percent, respectively compared to the same period last year. With national palay and corn output hitting an all time high in the first semester this year registering year-on-year increases of 14.4 and 37.0 percent, respectively, the performance of CAR’s agriculture sector in the first half of the year is expected to have contributed to the rebound in national palay and corn production.
Production of most of the region’s high-value vegetable crops also registered year-on-year increases, while a slight increase in banana output pulled up overall fruit production this quarter. However, due to seasonal factors, both fruit and vegetable production were down quarter-on-quarter with the observed rise in prices of these commodities within the quarter. Similarly, poultry and egg production were also down quarter-on-quarter due to seasonal factors also affecting average prices of these commodities.
Total fish production was up 15.0 percent year-on-year, with improved production from both aquaculture and municipal inland sources increasing by 12.0 and 23.3 percent, respectively. This was also accompanied by improved fish prices resulting to an average 18 percent increase in fish production value.
Overall regional livestock production meanwhile was down 17.2 percent year-on-year with carabao, cattle and hog production registering declines despite an increase in goat production output. Overall coffee production was also down both year-on-year and quarter-on-quarter with lower excelsa, liberica and robusta coffee output due to the ageing condition of bearing trees. This is despite the slight increase in output of the arabica variety from Benguet and Abra due to favorable weather conditions and an increase in bearing trees.