Cebu City logs 6.9% growth in 2021

CEBU City recorded the highest economic growth rate in Central Visayas, as stated by the Provincial Product Accounts (PPA) assessment done by the Philippine Statistics Authority (PSA) Region 7.

The agency presented the assessment on Friday, Dec. 2, 2022, at the Bai Hotel in Mandaue City.

Ariel Florendo, the PSA 7 director, told SunStar Cebu that they first conducted the PPA assessment in 2019 for the period 2019-2020, and the result was presented last year in 2021.

Florendo said the evaluation was initiated to compile the gross domestic product (GDP) using the production approach and other economic accounts at the subregional level.

Of their latest assessment created in 2021 for the period from 2020 to 2021, Cebu City had the highest economic growth rate, with 6.9 percent.

This was a huge breakthrough from having a downtrend of -10.8 percent economic growth rate for the period from 2019 to 2020.

Next to Cebu City was Mandaue City, with an economic growth rate of 6.2 percent from its previous -12.1 percent, and Cebu Province, with 5.4 percent increase from -8.2 percent.

Lapu-Lapu City also noted an increase from -16.7 percent to 3.8 percent.

In other provinces, the economic growth rate for the 2020-2021 PPA assessment is 5.7 percent for Siquijor, 4.7 percent for Negros Oriental, and 4.3 percent for Bohol.

Among the 16 recorded industries available in Cebu-- wholesale, retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, real estate and ownership of dwellings, and manufacturing were the strongest income contributors.

Meanwhile, mining and quarrying was the weakest industry of the entire Cebu island.

Florendo explained that this might be the result of the recent closures of mining sites, particularly those closed due to environmental and chemical-hazard risks.

Meanwhile, other provinces noted a decreased income in accommodation and food service activities caused by the coronavirus disease (Covid-19) pandemic, which had paralyzed the tourism industry for about two years due to lockdowns and travel restrictions.

“Tourism industry has cut across effects in restaurants, accommodations, hotels, and it also affects transportation,’’ said Florendo.

Relevance

He reiterated that the PPA is relevant for economic planners, particularly the local government units to identify the strong and weak industries within their jurisdiction that they need to assess.

Additionally, he said they might be able to conduct a municipal and city product accounts assessment sometime soon.

As stipulated under Republic Act 10625 otherwise known as the Philippine Statistical Act of 2013, the PSA is tasked to generate and maintain national accounts at the national and sub-national levels.

The agency is also responsible for developing compilation methodologies using various data to support the national accounting framework, or the System of National Accounts which presents a comprehensive picture of the economy as well as the different factors that are relevant to the economic situation to assess the developments and formulate policy measures that are needed to bring the country’s entire economy to a desired goal.