Central Visayas economy to improve by third quarter

By Jesica B. Natad (The Freeman) Updated August 03, 2010 12:00 AM

CEBU, Philippines – The economic performance of Central Visayas is expected to improve further in the third quarter of the year, based on the result of the Business Expectations Survey (BES) conducted by the Bangko Sentral ng Pilipinas (BSP).

According to the BSP survey, the business outlook for region 7 increased in the second quarter of 2010. The next quarter outlook index also indicates further improvement of business and economic performance in the third quarter of the year.

Region 7 or Central Visayas is composed of Bohol, Cebu , Oriental Negros and Siquijor.

The BSP conducts quarterly BES among a random sample of the top 7000 corporations in the country. In region 7, the BES has a sample size of 146 companies, of which 77.4 percent or 113 respondents for the third quarter of 2009 survey.

In general, the overall economic situation in the Visayas, in terms of population, unemployment, prices, economic production and financial resources has been positive. Visayas is comprised of regions 6, 7 and 8.

According to the BSP data, the Visayas population is growing slowly compared to Luzon and Mindanao. Unemployment rate is relatively low but underemployment is high except for Central Visayas. Inflation rate is low and stable. The economy is focused in agriculture, fishery and forestry and services. The real economy in the island s growing but slow compared to Luzon. Financial resources are improving. Business outlook is generally optimistic.

Population is growing at the rate of 2.02 percent every year. This is the same as the national average, which is higher than the growth rate of the national capital region but lower than the growth rate for Mindanao and Luzon .

Visayas' most significant contribution to the national economy are in agriculture, fishery and forestry (AFF) followed by services. Some 17.8 percent of AFF produced in the Philippines come from the Visayas.

The industry contribution of Visayas to the economy is smallest among the island groups. However, the services sector contributes more to the economy than Mindanao.

Visayas contributes 18 percent to the country's mining and quarrying production. Region 6 contributes the most to the country's mining production while

Among the Visayas region, Central Visayas contributes most to the country's industry production of at 6.42 percent. With regard to goods and services produced, region 6 and 7 contributes 87.2 percent of all goods and services produced in the Visayas. (THE FREEMAN)