Accelerating Human Capital Development 72

Chapter 2 Global and Regional Trends and Prospects

The year 2020 was welcomed with such a positive outlook that the Philippines will be able to achieve our goal of “Laying down the Foundation for Inclusive Growth, a High-Trust and Resilient Society, and a Globally-Competitive Knowledge Economy” by 2022. In 2018, poverty incidence in the region dropped to 28.2 percent of the population, lifting some 385 thousand poor people of Region XII out of poverty. The poverty target of 22.2 percent in 2022 seemed to be achievable with the gains from the first half of the plan (2017-2019).

However, in March 2020, COVID-19 disrupted the growth momentum and development trajectory. As a response to this unprecedented situation, the government decided to impose community quarantine to restrict movements and to prevent the spread of the virus. This resulted in the temporary closure of establishments, loss of jobs, disruption in transportation, services, and regular operation of some industries which affected the economy notonly of the region but of the entire world.

Assessment of SOCCSKSARGEN Economy

At constant 2018 prices, our GRDP contracted by 4.3 percent, from PhP 470 Billion in 2019 to PhP 450 Billion in 2020. (Figure2.1)

In terms of contribution by major industry, the service sector which accounts for the largest share of the region’s GRDP dropped by 8.9 percent. Among the sub-sectors most affected are those in personal services for wellness, repair of personal and household goods, laundry services, repair of computers and communications equipment which declined by 44.6 percent. Reduced passenger capacity per trip of public transport vehicles to ensure physical distancing, as well as the decline in the number of passengers due to disruption of physical classes of the students and workers going online, adversely affected the transportation and storage sub-sector which contracted by 35.2 percent. The accommodation and food service declined by 34.5 percent.

The tourism sector was the worst hit by the pandemic. Tourism sites, hotels, resorts, travel and tour shops were closed. Domestic and foreign travels were at the barest minimum limited only to essential services. The preliminary report of the Department of Tourism (DOT) XII registered an 81 percent decrease in overnight and day tourists in the region.