The economy did better in ’06

Data recently released by the National Statistical Coordination Board (NSCB) show that the economic situation in Eastern Visayas improved in 2006. This is shown by the increase of the Gross Regional Domestic Product (GRDP) by 4.9 percent. (GRDP, a measure of the value of goods and services produced in the economy, amounted to P27.98 billion in 2006 compared to P26.66 billion in 2005).
           
It is important to note in the figures released that agriculture and fishery grew by 4.8 percent, an improvement over the 4.5 percent growth in 2005.
           
Also notable is the increase of manufacturing output as its increase grew from 1.9 percent in 2005 to 8.5 percent in 2006.
           
However, there were declines in the service sector from an increase of 4.5 percent in 2005, to 3.7 percent in 2006.
           
The slowdown (but still an increase) in the service sector that includes transportation, communication, trade and finance could be a delayed reaction, meaning this sector will experience the effects of the gains in agriculture, fishery and manufacturing in 2007.
           
The increase in the demand for services will result from more disposable income from farmers, fishermen and manufacturers.
           
It should also be important to note that GRDP does not include income from Overseas Filipino Workers (OFWs). This is included in the Gross National Product (GNP) obviously for the reason that it will be extremely difficult to gather this data from the region.
           
The total improvement in the economy could be higher than 4.9 percent since income from OFWs grew at a rate of 10.6 percent in 2006.
           
A substantial portion of GNP is accounted for by incomes earned by OFWs.

With the improved economic performance in the first three months of 2007 and the high consumption spending in the second three months (primarily due to the elections) Eastern Visayas may experience a higher than 4.9 percent (2006) growth rate in 2007.