Albay governor boasts of Bicol’s economic model

LEGAZPI CITY, Philippines – Albay Governor Jose Ma. Sarte Salceda Jr. said the National Government should emulate the economic model of the Bicol region which is now the fastest growing region in the country.

Salceda, economic adviser of former President Arroyo, said that Bicol expects its domestic output as measured by the gross domestic product (GDP) to expand by 12.4 percent this year from 8.2 percent last year.

The region outpaced the national GDP growth rate of the Philippines of 1.1 percent last year from 3.8 percent in 2008.

The region’s GDP growth target is more optimistic than the revised target of five percent to six percent set by the Cabinet-level Development Budget Coordination Committee (DBCC). Economic managers originally expected GDP to grow between 2.6 percent and 3.6 percent this year.

However, the Philippines posted a stronger-than-expected GDP growth of 7.3 percent in the first quarter of the year from 0.5 percent in the same quarter last year.

Sectors that could boost economic growth this year include tourism after the expansion of the mining and energy sectors resulted to stronger economic growth last year. “It is near boom in Albay,” Salceda stressed.

According to him, electricity sales rose 27.5 percent in the first half while tourist arrivals are seen to increase dramatically by 21 percent this year with the opening of new hotels.

Furthermore, he added that the collections of the Bureau of Internal Revenue in the region zoomed 36 percent to P2.5 billion from January to June this year compared to P1.9 billion in the same period last year.

For his part, BSP Governor Amando Tetangco Jr. said in his keynote address during the opening of the new central bank
office here that Bicol region claimed the distinction of having the fastest growth rate in terms of goods and services produced among the 17 regions in the Philippines in 2009.

“In 2009, when traditional growth areas generally slowed down and the national GDP growth was a modest 1.1 percent, Bicol’s GDP increased by an impressive 8.2 percent,” Tetangco stressed.

BSP Legaspi branch services 75 branches of rural, thrift and commercial banks in the cities of Legaspi, Tabaco, Ligao and Sorsogon as well as the provinces of Albay, Sorsogon, Masbate and Catanduanes. –Lawrence Agcaoili (The Philippine Star)