BAGUIO CITY (PIA) — The National Economic and Development Authority (NEDA) has recommended a production-driven growth for better economic outlook for the Cordillera in 2023.
NEDA Policy Formulation and Planning Division Chief Freda Toyoken shared this during the online dissemination forum on the May 2023 CPI and Inflation Report of the Cordillera last June 27.
She explained that aside from Gross Domestic Product (GRDP) growth, the region should also target a production-driven growth to achieve this year’s regional targets of inflation rate at 2.5 – 4.5% and GRDP at 5.0 – 6.0%.
“We are targeting not only the GRDP growth but it should be production-driven. We hope na wala masyadong weather disturbance for the next seven months so that production will not be dampened due to calamities and weather disturbance para maabot natin yung ating desired inflation rate and GRDP,” Toyoken said.
Among the strategies to ramp up production-driven growth in the region include keeping production costs at a low, ensuring balance in supply and demand for top expenditures, adjusting wage rates, and turning savings into investments.
These were presented following the report on the May 2023 Inflation situation in the region which showed a 3.9% inflation rate, lower than the April 2023 inflation rate at 4.3%.
Philippine Statistics Authority-Cordillera (PSA-CAR) Statistical Specialist Gina de Guzman reported that the main sources for the deceleration of inflation in the region in May include the transport which decreased from 4.1% in April to.6% in May; Food and Non-Alcoholic Beverages from 7.2% to 7.1%; and Housing, Water Electricity, Gas and other Fuels from .4% to .3%.
She also shared that the major contributors for inflation in the Cordillera in May 2023 are Food and Non-Alcoholic Beverages with a percentage share of 66.2; Restaurants and Accommodation Services with a 6.9 percentage share; and Personal Care and Miscellaneous Goods and Services with a percentage share of 5.4.
Major commodities which sustained constant inflation are Educational Services, Restaurant an Accommodation Services, and Financial Services.
De Guzman disclosed that Apayao has the highest inflation among the provinces in the Cordillera in May 2023 at 6.1%; followed by Abra at 4.6%, and Mountain Province at 4.5%.
Ifugao recorded an inflation rate of 4.4; Kalinga with 4.1; Benguet at 3.8; and Baguio City at 3.0 inflation rate.
Cordillera also has the lowest inflation rate among areas outside the National Capital Region in May 2023.
“’Yung inflation rate ng top items ay nag-slowed down and that’s a good sign that should be sustained,” Toyoken commented.
Toyoken also suggested that to be able to boost production-driven growth in region, authorities must also target programs and policies that would lower production inputs such as in agriculture.
“We remain hopeful if we focus on production-driven growth. Let us look at yung cost-push factors na tumaas ulit kagaya ng cost of transport, yung sa oil and yung sa electricity,” she said.
PSA-CAR presents a comparison of the inflation rate in the Cordillera for May 2022, April 2023, and May 2023 during the Online Dissemination Forum on June 27, 2023.
Aside from keeping the target inflation rate, she also noted that the Average Savings of Families in the Cordillera in 2018 is highest across the regions in the country at an estimated P124,000.
“Maganda na may savings ka but in the long run kapag hindi mo yan na-translate into investment is sayang kasi hindi makaka-contribute sa economic growth,” she explained.
The Online Dissemination Forum on CPI and Inflation Report led by the PSA-CAR is a monthly activity to inform the public on the regional economy’s health.**JDP/JJPM-PIA CAR
