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QRES (2nd Quarter 2013) A QUICK LOOK AT THE ECONOMY 

Stable prices of commodities

More persons joined the labor force

Services sector is biggest employer

Production of palay, corn and abaca increased

Fisheries production increased

Tourist arrival increased

Employment rate decreased

Underemployment rate increased

Decline in coconut production

Total investments decreased

Mineral production decreased

Prices Inflation rate = 3.3%; CPI = 136.1 Prices of consumer items in the Bicol region were relatively stable during the second quarter. Most of the items posted a zero to less than one percent change in price index from the previous quarter. Only alcoholic beverages and tobacco; housing, water, electricity, gas and other fuels; and education recorded an increase in price index higher than one percent from the first quarter. The alcoholic beverages and tobacco commodity group increased the highest among commodities from a price index of 149.13 to 160.7. Communication remained unchanged throughout the second quarter. The region's average quarterly Consumer Price Index was placed at 136.1, up by 0.63 point from last quarter's index. Inflation rate slightly increased from a 3.0 percent in April to 3.3 percent in May and 3.5 percent in June. On the average, however, inflation rate for the second quarter was unchanged from the first quarter at 3.3 percent. This was only 0.5 percentage point higher than the average inflation rate for the second quarter last year. The purchasing power of the peso dropped to 73 centavos in June but the average PPP for the quarter registered the same as the previous quarter.

Period Indicator

2nd Qtr 2012

1st Qtr

2nd Qtr

2013

2013


Ave. Consumer Price Index

131.8

135.3

136.1

Food and Non-Alcoholic

141.4

144.8

145.1

123.3

149.1

160.7

Clothing

116.0

119.7

120.3

Housing, Water, Elect.,

122.3

124.2

125.5

124.2

127.0

127.3

Health

120.1

122.4

122.7

Transport

139.3

139.4

139.8

Communication

92.2

93.8

93.8

Recreation and Culture

106.5

107.6

108.1

Education

131.3

135.9

137.3

Restaurants and Misc.

125.6

130.0

131.2

Ave. Inflation Rate (%)

2.8

3.3

3.3

Ave. Purchasing Power of the Peso (in Pesos)

0.76

0.74

0.74

Beverages Alcoholic Beverages and Tobacco

Gas and Other Fuels Furnishings, HH Eqpt. & Routine Maintenance

Goods and Services

Labor and Employment Total population 15 years old and over was estimated at 3.833 million in April. Additional persons joined the labor force as shown by an increased labor force participation rate. Labor force population includes those who are employed or unemployed and are looking for jobs. Total employed persons increased from 2.258 million in January to 2.312 million in April. However, the increase was not proportionate to the increase in the number of persons who joined the labor force. Thus, employment rate dropped to 92.2 percent in April despite the increase in the number of employed persons.

Indicator

Period April 2012

Jan 2013

April 2013

Population 15 years & above (in thousands)

3,760

3,814

3,833

LF Participation Rate

64.5

62.8

65.4

Employment Rate

93.1

94.2

92.2


Unemployment Rate

6.9

5.8

7.8

Underemployment Rate

34.7

35

38.5

By major industry group, services accounted for the biggest share of employed persons with about 1.1 million Bicolanos. The top subsectors with highest contribution are wholesale and retail trade, transportation and storage; public administration and defense, and other services. Agriculture placed second with almost 875,000 employed Bicolanos. Most of them (84 percent) are engaged in agriculture and forestry, while 16 percent of the employed are in the fishery sector. The industry sector generated the lowest employment. Most of the employed persons in the industry sector are engaged in manufacturing and construction. Underemployment rate increased to 38.5 percent in April from 35 percent in January.

Agriculture and Fishery Crops Production of palay, corn, and abaca increased in the second quarter. This is due to a favorable weather condition that prevailed during the quarter. The increase in production is also a result of the aggressive promotion of organic farming that reduced the use of harmful chemicals in local farms. In promoting organic farming, the DA regional field unit provided seeds, organic fertilizer, and farm implements to farmers. Coconut production, however, declined by 23.5 percent from 290,187 metric tons in the first quarter to 222,136 metric tons in the second quarter. This is still a result of the illegal cutting and infestation in the previous years. This led the PCA and DAR to enter into a memorandum of agreement to accelerate coconut planting and replanting in the entire region. Under the agreement, PCA will provide the planting materials, technical assistance and extension services. DAR will identify suitable lands for coconut.


Product

%

1st Q2013

2nd Q2013

275,454

350,030

27.1

88,309

269

Change

I. Crops (MT) Palay Corn Coconut Abaca

23,943 290,187.3 6,509.23

222,136.85

(23.5)

7,428.32

14.1

II. Livestock Carabao

257,943

4,252.01*

-

Cattle

91,254

6,669.47*

-

Goat

123,060

1,107.94*

-

Swine

807,901

831,377

2.8

III. Fisheries (MT)

Commercial

15,218.67

19,750.14

29.8

Municipal

37.077.86

42,575.78

14.8

Aquaculture

18,928.02

25,439.81

34.4

Livestock There was a slight increase in swine production as shown in the table above. Production data on other livestock are preliminary. Fisheries Because of a generally good weather condition during the quarter, production from commercial, municipal and aquaculture fisheries increased compared to the first quarter.

Tourism Foreign tourists continued to flock to the Bicol region in the second quarter of 2013. Almost half of them were from the United States, followed by Germany, China, Australia and France. Country of Origin

No. of Tourists

1. U.S.A

2,951

2. Germany

1,008

3. China

891


4. Australia

841

5. France

669

Total

6,360

Bicol Region, particularly the Province of Albay, broke Guinness world record by forming the largest human “no smoking” sign. Wearing red, white, and black longsleeved shirts, a total of 13,892 government employees, students, and volunteers formed the “no smoking” sign on the soccer field of the Bicol University in Legazpi City (right photo). The grand celebration of Albay's Daragang Magayon Festival was held with a parade of street dancers and an army of giants called "Higantes de Albay" that amused about 300,000 spectators (photo below).

Tabaco City was hailed as “padyak capital” of the Philippines with about 3,000 pedicabs plying the streets as primary means of public transport in the city. Drivers of these pedaled vehicles were placed at the frontline of the city’s tourism industry. Initially, 30 pedicab drivers were trained under the city’s “Padyak Tour”, a tourism program that creates alternative sources of livelihood for these drivers. In Camarines Norte, the Bantayog Festival in April and the Pineapple Festival in June drew tourists to the province. Cebu Pacific Air started the Masbate-Cebu route, which boosted the island’s flourishing commerce and tourism. The Rodeo Masbateño is annual gathering of cowboys and cowgirls from around the Philippines and from other countries. In Sorsogon, the provincial government conducted a specialized training on tour guiding techniques, established the climbing protocol for the Bulusan Volcano Natural Park, and created multi-hazard contingency plans in the different tourist destinations in the province. Naga Excursions or “Naga X” was launched as the new tourism brand of 16 LGUs in Camarines Sur that formed an alliance to promote tourism in the province. Activities after the launching include media familiarization tour, tourism safety and security seminar, creation of Naga X marketing materials and Naga X sales mission in Manila.


Naga X tour packages include the following destinations: Mt. Isarog National Park, Haciendas de Naga, Consocep mountain resort, and Panicuason hot springs resort. The tourism industry in the region was negatively affected by the phreatic explosion of Mt. Mayon which caused the death of three Germans, a French tourist, and a Filipino tour guide while scaling up the volcano. Because of the incident, tourism activities were banned on the slopes of Mt. Mayon. The Department of Tourism Region 5 expressed concern over the decrease in sightings of whalesharks in Donsol, Sorsogon which caused the decline in tourist arrival. The decrease in whaleshark sighting was attributed to sea temperature rise due to climate change.

Investments There was a decline in total investments registered with the SEC in the region from P323 million in the first quarter to P90 million in the second quarter. These investments consist of paid-up capital and contributions of firms (stock and non-stock) and partnerships. Data on single proprietorship is not yet available. The decrease in total investments was due to a lower number of registered companies. The paid-up capital from stock firms decreased from P305 million in the first quarter to P64 million in the second quarter. Also, contributions from non-stock firms declined by 17 percent. Two additional partnership businesses were registered in the second quarter, resulting to an increase in contributions. In terms of the total number of firms, 142 firms were registered during the second quarter compared to 169 registered firms in the first quarter. Type of Firm

1st Qtr 2013

2nd Qtr 2013

%Change

42

28

(33.33)

305,454,425

63,804,900

(79.11)

121

106

(12.40)

15,113,126

12,601,970

(16.62)

6

8

33.33

2,052,001

13,600,000

562.77

Total no. of firms

169

142

(16)

Total investments

322,619,552

90,006,870

(72.10)

Stock Paid-up capital Non-Stock Contribution Partnership Contribution

Mining The estimated value of mineral production (metallic and non-metallic) in the region decreased by 9.50 percent in the second quarter. Although the value of metallic mineral production in Albay increased, the value of gold and silver production in Masbate declined by 23 percent from P3 billion to P2.3 billion in the second quarter. This resulted to decrease in the value of total metallic production in the region.


There was no production of silver (by product of zinc) and perlite in Albay. This contributed to a significant decrease in the value of production of non-metallic minerals. Shale clay was not produced in the first quarter but there was an estimated value of 7,100 pesos in the second quarter.

Province

Mineral Commodity

2nd Qtr 2013

4,019,486,648

3,637,512,640

(9.50)

4,018,504,599

3,637,191,140

(9.49)

Total

1,056,741,430

1,346,765,291

27.45

Zinc Concentrate

190,279,528

213,646,892

12.28

Copper Concentrate

382,557,797

513,434,330

34.21

Gold (byprod of Copper)

400,830,877

536,614,292

33.88

Silver (byprod Copper)

of

82,821,498

83,069,776

0.30

Silver (byprod Zinc)

of

251,729

No production

-

Total

2,961,763,168

2,290,425,848

(22.67)

Gold

2,916,940,931

2,263,215,090

(22.41)

Silver

44,822,236

27,210,758

(39.29)

982, 048.8

321,500

(67.26)

Total

944,848.80

7,100.00

(99.25)

Perlite

944,848.80

No production

-

Shale Clay

No production

7,100.00

-

Perlite

37,200.00

314,400

and

Non-

METALLIC

Masbate

NON-METALLIC Albay

C Sur

%Change 1st Qtr 2013

Total (Metallic Metallic)

Albay

Estimated Value (P)

745.16

Disaster Risk Management The provincial government of Albay signed a memorandum of agreement with the German Technical Cooperation to establish three early flood warning systems. Albay and Smart Communications, Inc. joined hands in adopting a disaster and emergency mobile application to be used by the Albay Public Safety and Emergency Management Office in disaster response management. Albay deployed a team to Davao Oriental and Compostela Valley to share experiences in post-disaster rehabilitation. The OCD Region 5 trained youth leaders from 27 barangays of Malilipot, Albay on disaster preparedness and recycling of plastic bottle containers for household lighting. DA-RFU 5 conducted the Regional Climate Outlook Forum to disseminate climate and agro-meteorological information to different government agencies and farmers to help them prepare and mitigate the negative impacts of climate variability. The DENR and the Development Bank of the Philippines collaborated in promoting


the development of tree plantations in the country. Personnel from the AFP, OCD, DENR, provincial government of Albay, and green media advocates led by the Philippine Network of Environmental Journalists, Inc. and Albay-Legazpi Press Association, Inc. joined hands to reforest the coastal areas of Bacacay to mitigate the impact of climatic change.


Qres (2nd q 2013)  
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