TABLE OF CONTENTS

I. Macroeconomic Performance . . . . . . . 1

Inflation . . . . . . . . . 1

Consumer Price Index . . . . . . . 1

Purchasing Power of Peso . . . . . . . 2

Labor and Employment . . . . . . . 2

II. Agriculture, Forestry and Fishery Sector Performance . . . 3

Crops . . . . . . . . . 3

Palay . . . . . . . . . 3

Corn . . . . . . . . . 3

Fruit Crops . . . . . . . . 4

Vegetables . . . . . . . . 4

Non-food and Industrial and Commercial Crops . . . . 5

Livestock and Poultry . . . . . . . . 5

Fishery . . . . . . . . . 6

Forestry . . . . . . . . . 6

III. Trade and Industry Services Sector Performance . . . . 8

Business Name Registration . . . . . . . 8

Export . . . . . . . . . . 8

Import . . . . . . . . . . 9

Manufacturing . . . . . . . . . 9

Mining . . . . . . . . . . 10

IV. Services Sector Performance . . . . . . . 11

Financing . . . . . . . . . 11

Tourism . . . . . . . . . 12

Air Transport . . . . . . . . . 12

Sea Transport . . . . . . . . . 13

Land Transport . . . . . . . . 13

V. Peace and Security . . . . . . . . 15

VI. Development Prospects . . . . . . . 16

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MACROECONOMIC PERFORMANCE

Inflation Rate

The region’s inflation rate continued to move at a slower pace in Q1 2019. From 4.2 percent in December 2018, it declined by 0.5 percentage point in January 2019 at 3.7 percent (Figure 1). It further decelerated in the succeeding months, registering 3.3 percent in February and 2.9 percent in March. This improvement was primarily due to the slow movement in the monthly increment in the price indices of heavily-weighted commodity groups, such as food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and transport. The importation of rice somehow averted the further increase in the market price of rice in the locality. In addition, the provision of government subsidies particularly to vulnerable groups (i.e. DOTr’s Pantawid Pasada Program) and free tuitions under Republic Act No. 10931 have eased the costs for transportation and education. Nonetheless, on a year-on-year basis, the region’s average inflation in Q1 2019 was still relatively higher by 0.6 percentage point compared to the previous year’s average at 2.7 percent. The provincial inflation followed the same track relative to the region. However, the provinces of Dinagat Islands and Surigao del Norte exhibited considerably higher inflation rates in Q1 2019 at an average rates of 8.2 percent and 5.1 percent, respectively (Figure 2). Dinagat Islands has been heavily affected by the surge in the average costs of food commodities and transport being an island province and a net importer of agricultural products. The booming tourism and mining industries in Surigao del Norte further influenced the rise in the prices of basic goods in the locality. Meanwhile, Agusan del Norte and Agusan del Sur registered lower inflation rates in Q1 2019 compared to the previous year with a decrease of 0.40 and 1.00 percentage points, respectively.

Consumer Price Index

The relatively high increase in the region’s inflation, combined with the implementation of the Tax Reform for Acceleration and Inclusion

Figure 4. Consumer Price Index by Province

Source: PSA Caraga

Figure 1. Inflation Rate, Caraga Region

Source: PSA Caraga

Figure 2. Inflation Rate by Province

Source: PSA

Figure 3. Consumer Price Index, Caraga Region

Source: PSA Caraga

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(TRAIN) Law, continued to affect the average prices indices of the region’s basket of goods and services. The region’s average price index for all items went up by 4.9 points in Q1 2019, yielding a mean CPI for the quarter of 119.5 from 114.64 in the same period last year (Figure 3). This was due to the notable year on year average increase in the prices of some commodity groups, such as alcoholic beverages and tobacco by 21.1 percent; food and non-alcoholic beverages by 4.0 percent; housing, water, electricity, gas and other fuels by 4.9 percent; furnishing, household equipment and routine by 3.1 percent; and restaurant and miscellaneous goods and services by 2.5 percent. Among the provinces, Dinagat Islands exhibited the sharpest increase in its average CPI by 9.0 points, from 110.6 in Q1 2018 to 119.6 in the same period this year (Figure 4). Nonetheless, Surigao del Sur posted the highest average CPI of 123.8 in Q1 2019.

Purchasing Power of Peso The region’s purchasing power of peso (PPP) decelerated over time. On a monthly basis, the PPP weakened by 1.19 percent, from 0.84 centavos in January to 0.83 centavos by end of March this year. On a year on year basis, the mean PPP dropped by 7.79 percent from an average of 0.90 centavos to a peso in Q1 2018 to 0.83 centavo to a peso in the same quarter this year. This implies that for PhP100.00, a consumer could only buy PhP83.0 worth of goods based on 2012 constant prices. The relatively high local inflation further squeezed the waning PPP as it further reduced the amount of goods and services that can be bought by the consumers (Figure 5).

Labor and Employment The region’s working age population increased on a year-on-year basis by 2.83 percent from 1.875 million in Q1 2018 to 1.928 million on the same period last year (Table 1). However, labor force participation rate shrunk by 7.9 percentage points to settle at 59.2 percent, which was lower by 1.0 percentage point compared to the national average of 60.2 percent. Employment rate also fell by 1.9 percentage points, which posted at 94.1 percent in Q1 this year from 96.0 percent of the same period last year. The region’s employment rate was 0.7 percentage point below the national average of 94.8 percent. Consequently, unemployment in the region grew by 1.9 percentage point from 4.0 percent in Q1 2018 to 5.9 percent in Q1 this year. Nonetheless, underemployment rate dropped by 4.3 percentage points from 24.7 percent in Q1 2018 to 20.4 percent of the same period this year. Table 1. Labor and Employment, Caraga Region

Indicator Q1 ‘18 Q1 ‘19 Percent (%)

Change

Labor Force 1.875 Million

1.928 Million

2.83

Labor Force Participation Rate

67.1 59.2 (7.9)

Employment Rate 96.0 94.1 (1.9)

Unemployment Rate 4.0 5.9 1.9

Underemployment 24.7 20.4 (4.3)

Source: PSA Caraga

Figure 5. Purchasing Power of Pesos, Caraga Region

Source: PSA Caraga

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AGRICULTURE, FORESTRY AND FISHERY SECTOR

PERFORMANCEBOR AND EMPLOYMENT

Crops

Palay

The region’s palay commodity generally performed well in Q1 2019 with its volume of production increased by 19.01 percent, from 21,659 MT in Q1 2018 to 25,776 MT (Figure 6). This was credited to the remarkable surge in the palay outputs generated in Agusan del Norte by 24.51 percent, Surigao del Norte by 22.94 percent and Surigao del Sur by 21.93 percent. Surigao del Norte topped among other provinces, which palay production comprised 42 percent of the regions total output. It is followed by Surigao del Sur, comprising 34.7 percent. The upsurge in palay production was largely ascribed to the expansion in the region’s aggregate area harvested by 8.08 percent and yield by 10.1 percent. Palay area harvested particularly expanded in Agusan del Norte by 19.0 percent, Surigao del Norte by 8.9 percent and Surigao del Sur by 10.22 percent (Figure 7). Both Surigao del Norte and Surigao del Sur recorded the largest area planted to palay, comprising 41.8 percent and 35.8 percent to the region’s total palay cultivated area, respectively. Meanwhile, Agusan del Sur and Dinagat Islands’ area harvested reduced by 19.5 percent and 4.09 percent, respectively. In terms of yield, a notable increase was recorded in Agusan del Norte by 19.0 percent, Surigao del Norte by 8.9 percent and Surigao del Sur by 10.22 percent (Figure 8). Agusan del Sur, the food basket of the region, experienced a decline in its palay yield by 2.2 percent. Thus, the province’s produced palay comprised only 5.8 percent to the region’s total in Q1 this year. Corn The corn commodity exhibited an astonishing upsurge of 148.57 percent in its volume of production, from 2,144 MT in Q1 2018 to 5,329.39 MT in the same period this year

(Figure 9). Except for Agusan del Norte, the rest of the region’s provinces displayed a remarkable increase in said commodity output. In particular, Agusan del Sur’s production climbed by 222.27 percent, from 1,398 MT in Q1 2018 to 4,505 MT in Q1 this year. Agusan del Norte produced 9.75 percent less in Q1 2019 or a reduction of 55.60 MT (Figure 10).

Figure 6. Palay Production by Province

Source: PSA Caraga

Figure 7. Palay Area Harvested by Province

Source: PSA Caraga

Figure 8. Palay Yield by Province

Source: PSA Caraga

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Agusan del Sur led among the provinces in the region in terms of area expansion for corn production. The province developed a total of 1,065 hectares additional area in Q1 2019, representing a 317.91 percent increase in the area harvested for corn from 335 hectares in Q1 last year. On the other hand, Agusan del Norte’s corn production area fell by 7.83 percent during the period. Overall, the region attained 169.23 percent surge in areas harvested for corn commodity, from 650 hectares in Q1 2018 to 1,750 hectares in Q1 2019. However, the region’s corn yield dropped by 7.67 percent, from 3.30 MT/hectare in Q1 2018 to 3.05 MT/hectare in the same period this year (Figure 11). This was due to low corn yield generated from the Agusan provinces. Corn yield in Agusan del Norte reduced by 2.08 percent, while Agusan del Sur contracted by 22.89 percent.

Fruit Crops The overall fruit production in the region declined by 2.25 percent in Q1 2019 with total yield reached 63,587.67 MT from 65,053.76 MT in the same quarter last year (Figure 12). This was attributed to lower quantity produced by the major fruit crops, which plunged by 2.43 percent in Q1 2019. Major fruit crops production dropped from 62,623.81 MT in Q1 2018 compared to 64,181.05 MT in the same period last year. Major fruit crops accounted roughly 98.0 percent of the total fruit production in the region, which mainly comprised of banana, calamansi, mango and pineapple. While there was notable upsurge particularly in priority and other fruit commodities at an average rate of 14.66 percent, this growth missed to offset the drop in banana production by 2.85 percent. The banana commodity encompassed approximately 97 percent of the region’s total fruit production. On one hand, both the priority and other fruit crops contributed minimally to the region’s aggregate fruit production with a combined share of only 1.52 percent.

Figure 10. Corn Area Harvested by Province

Source: PSA

Figure 12. Fruit Crops Production, Caraga Region

Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga

Figure 9. Corn Production by Province

Source: PSA

Figure 11. Corn Yield by Province

Source: PSA

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Figure 13. Vegetable Crops Production, Caraga Region

Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga

Vegetables The total production output of the region’s vegetables slightly fell by 1.88 percent in Q1 2019, from 13,171 MT in Q1 2018 to 12,923 MT in the same period this year (Figure 13). This was attributed to the low production outputs in major and other vegetable commodities, which declined by 3.43 percent and 0.36 percent, respectively. Major vegetables accounted 62.68 percent, while other vegetables contributed 9.21 percent. On the other hand, priority vegetables eked out a 1.24 percent increase. However, this commodity group comprised only 28.11 percent of the region’s total output.

Non-Food Industrial and Commercial Crops The combined production output of all non-food industrial and commercial crops (NFICC) in the region dropped by 1.67 percent in Q1 2019, which totalled to 225,555 MT against 229,396 MT in the same period last year (Figure 14). All commodity groups exhibited a decline in production led by priority NFICC, which plunged by 8.28 percent. The other NFICC

followed, which production plunged by 3.81 percent. The major NFICC suffered a decline by less than 1 percent. The major NFICC contributed largely in the region’s total production, which comprised 84.88 percent. Coconut production encompassed the bulk of the total output under this crop category, which accounted 98.15 percent. It is followed by rubber, which share posted at 1.25 percent. Coconut production declined by 0.35 percent, from a total output of 88,569 MT in Q1 2018 to 187,907 MT in the same period this year. Rubber production also dropped by 7.15 percent, generating a total yield of 2,582 MT in Q1 2019 from 2,398 MT in the same period last year. Meanwhile, production ouputs in abaca, coffee and sugarcane improved by 6.41 percent, 34.19 percent and 15.30 percent, respectively. However, all the three commodities accounted only less than 1 percent of the region’s total NFICC production. Livestock and Poultry Both livestock and poultry productions in the region slipped in Q1 2019 relative to the same period last year by 5.06 percent and 3.46

Figure 14. Non-Food Industrial and Commercial Crops Caraga Region

Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga

Figure 16. Poultry Production, Caraga Region

Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga

Figure 15. Livestock Production, Caraga Region

Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga

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percent, respectively (Figures 15 and 16). In particular, the livestock total production slumped by 5.06 percent, from 10,2880 MT in Q1 last year to 9,760 MT in the same period this year as all commodities therein suffered a decline in production outputs. Hogs production, which accounted 88.03 percent of the aggregate livestock production, plunged by 5.23 percent. The livestock commodities, such as carabao, goat and cattle, which combined production share encompassed 11.97 percent, have generated a lower production output relative to last year’s performance by 4.67 percent, 4.55 percent and 1.52 percent, respectively. Apparently, the region has long been a net importer of livestock products. On poultry products, only the production of chicken eggs and duck eggs displayed a positive performance in Q1 2019 compared to Q1 last year, which both increased at a margin of less than 1 percent. The production output of chicken and ducks dropped by 5.38 percent and 9.38 percent, respectively. The poultry production was largely dominated by chicken products, which comprised 96.48 percent of the region’s total poultry industry output. Fishery The overall fishery production in the region decreased by 3.48 in Q1 2019 with a total output reached 15,161.82 MT from 15,708.68 MT in the same period last year (Figure 17). This was primarily driven by a hefty 17.14 percent decline in the production output of municipal fishery, which contributed 68.09 percent of the region’s total fishery production. The waning fish catch within the municipal waters was attributed to the continued deterioration of the coastal ecosystems, illegal fishing activities and overexploitation of marine species.

Meanwhile, commercial fisheries and aquaculture posted an upward movement in production outputs by 64.06 percent and 32.20 percent, respectively. However, the combined share of both commercial and aquaculture fisheries comprised only 32 percent of the region’s total fishery output. The intensification in aquaculture fishery production was attributed to the increase in mudcrab and milkfish production fuelled by considerably high market prices of said commodities. Surigao del Norte contributed roughly 40 percent of the region’s total fishery production. However, its aggregate fishery output decelerated by 24.74 percent in Q1 2019 as it only produced a total volume of 6,092.97 MT from 8,095.50 MT in the same period last year. This was followed by Surigao del Sur, which production reached to 5,865.88 MT, representing a 35.15 percent growth from its total fishery production in Q1 2018. Despite the slump in total fishery production, the region generated a higher aggregate fishery value, which rose by 3.41 percent from PhP 1.46 Billion in Q1 2018 to PhP 1.55 Billion in Q1 2019. The 17.14 percent reduction in municipal fisheries’ output contributed only 5.83 percent drop in the aggregate fishery value. This was offset by higher fishery value generated in commercial fishery and aquaculture, which totalled to PhP 87 Million (5.93 percent) and PhP 29 Million (15.13 percent), respectively. Forestry The region’s overall log production improved despite the implementation of Executive Order No. 23, which declared a moratorium in the harvesting of naturally grown and residual forests. The region’s total log production grew

Figure 18. Log Production, Caraga Region

Source: DENR Caraga

Figure 17. Fishery Production, Caraga Region

Note: Q1 2019 data were only preliminary estimates Source: PSA Caraga

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by 5.47 percent, from 116,807 cu.m. in Q1 2018 to 123,191 cu.m. in the same period this year (Figure 18). Both Surigao del Sur and Agusan del Sur were the top contributors to the growth as log productions in said provinces exhibited a remarkable increase by 88.88 percent and 2.32 percent, respectively. Accordingly, several tree farmers in Surigao del Sur have already harvested a sizeable volume of falcata, particularly in areas developed in 2011 to 2015 under the DENR’s National Greening Program (NGP), which contributed to the huge increase in the log production of the province. Agusan del Sur and Surigao del Sur ranked first and second in log production, which contributions accounted 65.20 percent and 31.64 percent to the region’s aggregate log production, respectively. Meanwhile, log production in Agusan del Norte plummeted by 72.83 percent and nil production in Surigao del Norte in Q1 2019. Nonetheless, these dismal accomplishments were providently even out by high production rates in Surigao del Sur and Agusan del Sur.

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TRADE AND INDUSTRY SERVICES SECTOR

PERFORMANCE

Business Name Registration

The region registered a total of 6,903 new businesses in Q1 of 2019, representing a 3.28 percent increase in business name registration (BNR) from 6,684 registrants in the same period last year (Table 2). This was attributed to the increasing number of Negosyo Centers established at the local level, improved partnership between DTI Caraga and local government units (LGUs) and massive advocacy conducted with the private sector. Surigao del Norte and Surigao del Sur achieved substantial increase in the number of registrants in Q1 2019, which posted at 74.74 percent and 17.42 percent, respectively. The expansion generated by the Surigao provinces offset the contraction generated in the Agusan provinces and Dinagat Islands, which dropped at an average of 37 percent. Table 2. New Business Name Registered, Caraga Region

Province Q1 2018

Q1 2019

Percent (%) Change

ADN 2,315 2,080 (10.15)

ADS 1,355 1,300 (4.06)

SDN 1,211 1,422 17.42

SDS 867 1,515 74.74

PDI 936 586 (37.39)

Caraga 6,684 6,903 3.28

Source: DTI Caraga

Consequently, jobs generated from registered businesses exhibited an increase of 5.97 percent in Q1 this year from 10,459 jobs generated in the same quarter last year (Table 3). All provinces recorded higher job generated, except for Dinagat Islands that posted a decline of 68.35 percent from 1,128 jobs generated in Q1 2018. Table 3. Jobs Generated, Caraga Region Province Q1 2018

Q1 2019

Percent (%) Change

ADN 4,278 4,802 12.25

ADS 1,552 1,897 22.23

SDN 2,253 2,761 22.55

SDS 1.248 1,266 1.44

PDI 1,128 357 (68.35)

Caraga 10,459 11,083 5.97

Source: DTI Caraga

The region’s domestic sales grew by 12.95 percent, from PhP 206.21 Million in Q1 2018 to PhP 232.92 Million of the same period this year (Table 4). This was driven mainly by the upsurge in the recorded domestic sales in Surigao del Sur, which significantly grew by 3,971.76 percent. Domestic sales was up from PhP850,000 in Q1 2018 to PhP 34.61 Million in Q1 2019. However, Agusan del Norte and Dinagat Islands registered lower domestic sales relative to the previous year’s performance by 22.30 percent and 23.22 percent, respectively. Table 4. Domestic Sales, Caraga Region Province Q1 2018

Q1 2019

Percent (%) Change

ADN 79.96 62.13 (22.30)

ADS 96.20 113.76 18.25

SDN - - -

SDS 0.85 34.61 3,971.76

PDI 29.20 22.42 (23.22)

Caraga 206.21 232.92 12.95

Source: DTI Caraga

Moreover, investments recorded from business name registration in the region jumped by 733.53 percent, from PhP 432.32 Million in Q1 2018 to PhP 3.6 Billion of the same period this year (Table 5). All provinces recorded higher investment generated in in Q1 this year with Surigao del Norte generated a huge investment, which totalled to PhP 2.92 Billion. Surigao del Sur’s investments expanded by 3,641.47 percent from PhP 4.34 Million in Q1 2018 to PhP 162.38 Million in the same period this year. Dinagat Islands gathered investment was up by 139.53 percent. Table 5. Investment, Caraga Region Province Q1 2018

Q1 2019

Percent (%) Change

ADN 269.32 271.36 0.76

ADS 135.26 142.27 5.18

SDN - 2,971.44 -

SDS 4.34 162.38 3,641.47

PDI 23.40 56.05 139.53

Caraga 432.32 3,603.50 733.53

Source: DTI Caraga

Export

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The region’s aggregate volume of exported products slipped by 22.44 percent in Q1 2019, which totalled to 1.84 billion kilograms compared to the 2.37 billion kilograms in the same period last year (Figure 19). The drop in the export volume was attributed to the decrease in the shipment of nickel ores that was attributed to low production in said mineral commodity. The decrease in the production of nickel ores was caused by low buying price in the global market and temporary shutdown in the operations of some mining companies pending full environmental rehabilitation of their mining concession areas. However, the value of exports grew by 24.58 percent in Q1 2019, which totalled to US$197 Million from US$158 Million in Q1 2018 (Figure 20). The increase in export value was due to relatively modest prices of high-value mineral commodities in the global market which were shipped out to Japan and Hong Kong, China. In addition, the demand for coconut products and banana chips grew, which were exported mainly to developed countries such as Australia, Canada, Denmark, France, Netherlands, New Zealand, Spain, USA, among others. Import The region’s aggregate volume of imported products significantly tapered down by 86.75 percent in Q1 2019, which aggregate quantity summed up to 20 million kilograms compared to 157 million kilograms in Q1 2018 (Figure 21). Hence, the value of imported products also decelerated by 62.87 percent, from US$ 12.98 Million in Q1 2018 to US$ 4.82 Million in Q1 2019 (Figure 22). Among the imported products were rice from Thailand and chemical products from Japan and China. About US$ 5.4 Million worth of Thailand rice was traded in via the Port of Surigao in February this year. Rice importation was approved by the government to address the momentary shortage in the supply of rice locally. Manufacturing The wood and mining industries are main producers of manufactured products in the region. The wood-based manufactured forest products comprised of lumber, veneer and plywood. While the mineral-based manufactured product comprised of the nickel

Figure 22. Value of Import, Caraga Region

Source: PSA Caraga

Figure 23. Manufactured Wood-based Products

Source: PSA Caraga

Figure 19. Volume of Export, Caraga Region

Source: PSA Caraga

Figure 20. Value of Export, Caraga Region

Source: PSA Caraga

Figure 21. Volume of Import, Caraga Region

Source: PSA Caraga

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ore and cobalt mixed sulfide, a semi-finished mineral-based product, produced by the Taganito HPAL Corporation. The overall volume of manufactured forest products in the region was up by 22.75 percent from 94,308 cu.m. in Q1 2018 to 115,764 cu.m. in Q1 2019 (Figure 23). Lumber production shrunk by 12.37 percent. However, this was offset by the rise in veneer and plywood production, which grew by 23.02 percent and 47.10 percent, respectively. Veneer constitued 45 percent of the region’s aggregate output of wood-based manufactured products. High veneer production was attributed to high production of match splint as raw material for match production. It is followed by plywood at 39 percent, while lumber at 16 percent. The bulk of the region’s manufactured forest products are produced in Agusan del Norte, comprising 88 percent of the region’s total output as most of the wood-based processing plants are located within the province.

Mining The mining industry performance generally slowed down in Q1 2019 compared to the same period in 2018 as evident in the number of mineral shipments, production outputs and taxes generated. On mineral production, nickel ore and cobalt mixed sulfide production dropped by 10.42 percent in Q1 2019 (Table 6). This was due to low buying price of nickel ore in the global market, which discouraged the mining companies in the region to undertake massive production of nickel ores. Indeed, nickel ore shipments in Q1 2019 reduced by 39.62 percent, from 53 shipments in Q1 2018. Meanwhile, gold and silver production increased by 68.48 percent in Q1 2019, from 634,513 ounces to 1.069 million ounces in the same quarter this year. Gold and silver were solely produced in Agusan del Sur. Consequently, the drop in nickel ore production affected the actual gross sales of mineral products, which fell by 8.47 percent despite the 67.13 percent rise in the value of gold and silver. Both excise and royalty taxes collection from mining development substantially declined

during the period. Excise tax collection plummeted by a hefty 70.36 percent in Q1 2019, generating only a total collection of PhP 96 Million from PhP 324.111 Million in the same period last year. The huge decrease was attributed to the reduction in the excise tax collection of Surigao del Norte, which plunged by 97 percent. No collection was also recorded in Surigao del Sur during the period. Royalty tax collection, which is only imposed to mining companies operating within the mineral reservation areas, dipped by 96.37 percent. From a sum of PhP 335 Million accrued from mining companies in Q1 2018, total collection reached only to PhP 12 Million in the same period this year. Surigao del Norte’s actual tax collection pulled down the region’s aggregate royalty tax generated, which dropped by 97.28 percent. From PhP 333.938 Million in Q1 2018, the province generated a total tax collection of PhP 9 Million in the same quarter this year. The province’s share of royalty tax constituted 75 percent of the region’s total collection in Q1 2019. Table 6. Mining Statistics, Caraga Region Province Q1 2018

Q1 2019

Percent (%)

Change

Volume of Production

Gold and Silver (oz)

634,513.1 1,069,008.94 68.48

Nickel Ore and Cobalt Mixed Sulfide (WMT)

818,624.41 733,332.34 (10.42)

Gross Sales (PhP Billon)

Gold and Silver (oz)

1.128 1.885 67.13

Nickel Ore and Cobalt Mixed Sulfide

6.975 5.532 (20.69)

Total 8.103 7.417 (11.80)

Excise Tax Collected (PhP Million)

ADN 10.561 10.943 3.62%

ADS 45.112 75.398 67.13%

SDN 267.150 7.272 -97.28%

SDS 1.288 - -

PDI - 2.462 -

Total 324.111 96.075 (70.36)

Royalty Tax Collected (PhP Million)*

SDN 333.938 9.090 (97.28)

SDS 1.610 -

PDI 3.078 -

Total 335.547 12.168 (96.37)

*only for provinces with declared mineral reservation area. Source: MGB Caraga

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SERVICES SECTOR PERFORMANCE

Financing The region’s banking sector performance improved as of Q1 of 2019 compared to the same period last year. The region’s total bank asset exhibited an increase of 6.51 percent, which totalled to PhP 70.66 Billion in Q1 2019 compared to PhP 66.34 Billion in the same period last year (Figure 24). Total gross operating income reached PhP 870 Million, yielding an increase of 8.75 percent from PhP 793.38 Million of the same period last year. Loan portfolio also grew at a pace of 17.60 percent, from PhP 23.86 Billion in Q1 2018 to PhP 28.07 Billion this year.

As to types of bank, the universal, commercial and thrift banks booked higher figures in Q1 2019 compared to Q1 2018. Universal and commercial banks achieved the widest margin on loan portfolio at 37.87 percent increase in Q1 2019 (Table 7). Thrift banks expanded by 38.10 percent on total gross operating income. Rural and cooperative banks posted growth in total assets by 6.51 percent but recorded a decline in total gross operating income and loan portfolio by 17.24 percent and 22.22 percent, respectively. As to provinces, Dinagat Islands exhibited a jump in all three financial parameters. The province registered a 210.81 percent increase in total assets from PhP 370 Million in Q1 2018 to PhP 1.15 Billion in Q1 2019 (Table 8). Also, it registered a substantial increase by 50 percent in total gross operating income and 80 percent in total loan portfolio. On the other hand, Agusan del Norte, comprised 38.29

percent of the region’s aggregate assets in Q1 2019, registered a 4.45 percent decrease in total assets from PhP28.32 Billion in Q1 2018 to PhP27.06 Billion in Q1 2019. Also, the province posted the biggest share in the regional total loan portfolio by 48.64 percent pegged at PhP13.65 Billion, an increase of 18.39 percent in Q1 2019. Meanwhile, on total gross operating income, the Surigao provinces recorded decreases in total gross operating income by 18.75 percent (Surigao del Norte) and 15.79 percent (Surigao del Sur). Table 7. Banking Statistics by Type of Banks Indicators 2017

(PhP Billion)

2018 (PhP Billion)

Percent (%)

Change

Total Asset

Universal and Commercial Banks

53.33 56.16 5.31

Thrift Banks 6.47 7.47 15.46

Rural Cooperative Banks

6.54 7.03 7.49

Total 66.34 70.66 6.51

Total Gross Operating Income

Universal and Commercial Banks

0.30 0.34 13.33

Thrift Banks 0.21 0.29 38.10

Rural Cooperative Banks

0.29 0.24 (17.24)

Total 0.80 0.87 8.75

Loan Portfolio

Universal and Commercial Banks

13.44 18.53 37.87

Thrift Banks 5.48 5.69 3.83

Rural Cooperative Banks

4.95 3.85 (22.22)

Total 23.87 28.07 17.60

Source: BSP

Table 8. Banking Statistics by Province Indicators 2017

(PhP Billion) 2018

(PhP Billion) Percent (%) Change

Total Asset

ADN 28.32 27.06 (4.45)

ADS 11.60 13.56 16.90

PDI 0.37 1.15 210.81

SDN 14.24 15.87 11.45

SDS 11.80 13.02 10.34

Figure 24.0 Banking Statistics, Caraga Region

Source: PSA

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Indicators 2017 (PhP Billion)

2018 (PhP Billion)

Percent (%) Change

Total 66.34 70.66 6.53

Total Gross Operating Income

ADN 0.27 0.39 44.44

ADS 0.17 0.17 0.00

PDI .002 .003 50.00

SDN 0.16 0.13 (18.75)

SDS 0.19 0.16 (15.79)

Total 0.792 0.853 7.70

Loan Portfolio

ADN 11.53 13.65 18.39

ADS 4.85 5.95 22.68

PDI .05 0.09 80.00

SDN 3.80 4.27 12.37

SDS 3.63 4.11 13.22

Total 23.86 28.07 17.64

Source: BSP

Tourism Preliminary tourism data released by DOT Caraga showed that less tourists have visited the region in Q1 2019 compared to the same period last year. The recorded tourist arrivals totalled only to 212,531, representing a huge decrease of 35.54 percent from 329,695 tourists of the same period in 2018 (Figure 25). The domestic tourists, which encompassed 91.09 percent of the aggregate tourist arrival in the region, dropped by 36.89 percent as compared to the accomplishment generated in Q1 2018. Also, the number of foreign and overseas tourists plunged by 13.97 percent and 96.08 percent, respectively. Foreigners accounted 8.9 percent of the tourist arrival distribution.

Air Transportation

In Q1 2019, the region’s air traffic was reduced by 2.58 percent generating a lower number of flights of 2,112 compared to the 2,168 flights in the same period last year (Figure 26). This was largely attributed to the drop in the number of flights at Butuan airport, which declined by 42 percent relative to the its accomplishment in the same period in 2018. On one hand, the booming tourism industry in Surigao del Norte, particularly in Siargao Islands, resulted in the increase of flights at Surigao airport, which posted an increase of 36.15 percent despite the non-operation of the Philippine Airlines in said air facility.

The total number of passengers was up by 12.99 percent, from 167,600 passengers in Q1

Figure 26. Number of Flights, Caraga Region

Source: CAAP – Butuan and Surigao

Figure 27. Number of Passengers, Caraga Region

Source: CAAP – Butuan and Surigao

Figure 28. Volume of Cargo, Caraga Region

Source: CAAP – Butuan and Surigao

Figure 25. Tourist Arrival, Caraga Region

Source: DOT Caraga

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2018 to 189,370 passengers in Q1 2019 (Figure 27). Butuan City and Surigao City airports recorded a rise in the number of passengers in Q1 2019, which grew by 9.82 percent and 41.91 percent, respectively. Outgoing passengers contributed to the growth in Butuan City aiport’s air passenger by 23.47 percent. Meanwhile, Surigao airport posted an increase of 47.66 percent in incoming air passengers and 34.76 percent in outgoing passengers. Total volume of cargoes shrunk by 2.31 percent in Q1 2019, which summed up to 2,376,782 kilos compared to 2,433,099 kilos in the same period in 2018 (Figure 28). Butuan City airport cargo performance posted a decline by 3.39 percent in Q1 2019 compared to Q1 2018 due to the drop in the volume of outgoing cargoes by 9.12 percent. Surigao City, on the other hand, showed a significant surge of 465.71 percent in the transported cargoes. The volume of incoming cargoes grew by 512.50 percent, while outgoing cargoes rose by 393.41 percent.

Sea Transportation The PPA-PMO of Agusan recorded an increase in domestic ship calls by 3.59 percent in Q1 2019, which totalled to 1,818 ship calls as compared to 1,755 ship calls in Q1 2018 (Table 9). The increase was attributed to high number of motorbanca voyages plying from Butuan to Magallanes and vice versa. Meanwhile, foreign ship calls decreased by 31.25 percent or five (5) trips as San Roque Metals Inc. (SRMI) mining operations shifted to care and maintenance, and inclement weather such as typhoons resulted to suspension of loading operations of foreign vessels. Inbound domestic cargo throughput dropped by 0.84 percent in Q1 2019 due to major repairs implemented in the ports of Masao and Butuan, which resulted to several vessels opted to docked at another ports, such as Port of Surigao and Port of Cagayan de Oro. Also, the decrease in number of ships unloading refined petroleum products, cements, iron, steel and other chemical related products contributed to low domestic cargo throughput. On the other hand, outbound domestic cargo throughput climbed 70.82 percent or 85,522 MT

in Q1 2019. This was mainly attributed to the 239.51 percent increase of bulk cargoes in shipment of sand and gravel in Masao port. Breakbulk cargoes also rose by 60.35 percent as shippers opted for containerized shipments for safety purposes. Outbound cargo specifically for banana contributed to the increase in containerized cargo throughput by 45.18 percent. On foreign shipments, there were no registered imports under PPA Agusan on the first quarters of 2018 and 2019. However, exports declined by 42.83 percent from 773,567 MT in Q1 2018 to 442,260 MT in Q1 2019. The decrease in exports is due to reduced shipment of nickel ores by SRMI and Agata Mining Ventures Inc. (AMVI), both operating in the Province of Agusan del Norte. Table 9. Sea Transportation Statistics Indicators Q1 2018

Q1 2019

Percent (%)

Change

Number of Ship Calls

Domestic 1,755 1,818 3.59

Foreign 16 11 (31.25)

Total

Domestic Cargo Throughput (MT)

Inbound 236,786 234,804 (0.84)

Outbound 120,762 206,284 70.82

Foreign Cargo Throughput (MT)

Import 0 0 0

Export 773,567 442,260 (42.83)

Note: Lacking data for Surigao Ports Sources: PPA – Agusan

Land Transportation The region’s motor vehicle registration was up by 13.80 percent, from 51,923 vehicles in Q1 2018 to 59,087 vehicles of the same period in 2019 (Figure 29). This was attributed to the increase in both new registration and renewals,

Figure 29. Registered Vehicles, Caraga Region

Source: PSA Caraga

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which increased by 8.68 percent and 15.91 percent, respectively. In terms of vehicle classification, private vehicles still comprise the large chunk of the region’s total vehicle registration at 92.02 percent, which is followed by for hire vehicles at 6.43 percent. Government vehicles encompassed only by 1.55 percent. Private vehicles increased by 14.89 percent, an addition of 7,048 units in Q1 2019 compared to the same period in 2018. Meanwhile, for hire vehicles decreased by 4.33 percent. On the other hand, registration on government vehicles surged by 45.71 percent (Figure 30). About 60 percent of the registered vehicles were accounted in Butuan City. This was followed by Surigao City, which contributed 10.73 percent to the region’s total. Generally, all the provinces and cities’ vehicle registrations were up with the municipality of Dapa, Surigao del Norte exhibiting a substantial increase of 3,800 percent in vehicle renewals, from 21 units in Q1 2018 to 817 units of the same period this year. This was attributed to the area being a top tourist destination of the country.

.

RISM

Figure 30. Registered Vehicles, Caraga Region

Source: PSA

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PEACE AND SECURITY

Criminality The region managed to curb criminality at the local level with improved crime clearance and solution efficiency. The region’s total crime volume generally decreased by 9.04 percent, from 2,322 crimes in Q1 2018 to 2,112 crimes in the same period in 2019 (Table 10). This was due to the substantial reduction in both the recorded incidents of index crimes1 by 26.35 percent and non-index crimes2 by 4.5 percent. All provinces in the region achieved a notable contraction in crime volume with Agusan del Sur posted the highest decline of 23.11 percent. However, Butuan City yielded an increase in its crime volume by 3.95 percent during the period. Among the provinces, Dinagat Islands recorded the lowest crime volume posted at 2.3 percent of the region’s total. Conversely, Agusan del Sur has the highest recorded crime volume with 25.5 percent. Index crime accounted 16.8 percent of the region’s recorded total crime incidents. Theft and physical injuries were commonly perpetrated among other index crimes in Q1 2019, comprising 25.63 percent and 25.35 percent, respectively. However, both crimes significantly declined compared to the same period last year. Physical injuries dropped by 40.79 percent from 152 in Q1 2018, while theft plunged by 27.78 percent from 126 in the same period last year. Robbery also decreased by 42.86 percent from 70 in Q1 2018 to 40 in Q1 2019. On the same period, no incident was on carnapping of motor vehicles and castle rustling. However, rape cases increased by 25.53 percent from 47 in Q1 2018 to 59 in Q1 this year. About 27.11 percent of the 59 rape cases occurred in Surigao del Norte. Moreover, the region achieved substantial improvement in crime clearance efficiency (CCE)3 and crime solution efficiency (CSE)4,

1 PNP defined index crimes as crimes which are sufficiently

significant and which occur with sufficient regularity to be meaningful, such as murder, physical injury, robbery, theft and rape. 2 PNP defined non-index crimes as all types of crimes not

considered as index crimes. 3 PNP defined CCE as the percentage of cleared cases out of the total number of crime incidents handled by law enforcement agencies for a given period of time.

which reached 95 percent and 90 percent, respectively. Agusan del Norte bettered the other provinces both the CCE and CSE, accomplishing 95 percent and 94 percent, respectively. Table 10.0 Crime Statistics, Caraga Region

Indicator Q1 ‘18 Q1 ‘19 Percent (%) Change

Index Crime

Butuan City 84 63 (25.00)

ADN 54 47 (12.96)

ADS 155 73 (52.90)

PDI 13 13 0.00

SDN 116 103 (11.21)

SDS 60 56 (6.67)

Caraga 482 355 (26.35)

Non-Index Crime

Butuan City 346 384 10.98

ADN 247 250 1.21

ADS 546 466 (14.65)

PDI 45 36 (20.00)

SDN 327 323 (1.22)

SDS 329 298 (9.42)

Caraga 1840 1757 (4.51)

Crime Volume

Butuan City 430 447 3.95

ADN 301 297 (1.33)

ADS 701 539 (23.11)

PDI 58 49 (15.52)

SDN 443 426 (3.84)

SDS 389 354 (9.00)

Caraga 2322 2112 (9.04)

Crime Clearance Efficiency (%)

Butuan City 89 95 6

ADN 62 97 35

ADS 72 94 22

PDI 69 96 27

SDN 71 93 22

SDS 77 95 18

Caraga 73 95 22

Crime Solution Efficiency (%)

Butuan City 68 89 21

ADN 58 94 36

ADS 67 88 21

PDI 50 92 42

SDN 63 87 24

SDS 61 90 29

Caraga 61 90 29

Source: PNP Caraga

4 PNP defined CSC as the percentage of solved cases out of the

total number of crime incidents handled by law enforcement agencies for given period of time.

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DEVELOPMENT PROSPECTS

Agriculture Development • Ongoing projects under the Departnment

A-Philippine Rural Development Project (DA-PRDP) such as concreting of Ph P204 Million 13.3 km farm-to-market road (FMR) at Bayugan-San Luis, Agusan del Sur; concreting of PhP 129 Million 8.93 km Mahapag-Doña Maxima FMR in San Luis, Agusan del Sur; and construction of PhP 50.4 Million 4.76 km main canal with structures at Limbatangan CIS in Rosario, Agusan del Sur. (Source: Department of Agriculture – Caraga Facebook Page)

• DA-PRDP conducted final inspection on the PhP 103 Million 9.4 km Magsaysay-Bobonaon FMR rehabilitation and concreting in Mainit, Surigao del Norte. The road project together with the PhP 114 Million 9.0 km Sta. Cruz-Paco FMR would benefit 3,881 farming households. (Source: Department of Agriculture – Caraga Facebook Page)

• DA Caraga extends PhP 2.1 Million agricultural interventions to Agusan del Sur farmers including three (3) units mechanical rice transplanters. (Source: Department of Agriculture – Caraga Facebook Page)

• DA Caraga rice mechanization program turned over PhP 30.4 Million worth of 110 mechanical rice transplanters to 110 farmers association. (Source: Department of Agriculture – Caraga Facebook Page)

Trade and Industry • Proposed Banana Chips Factory of Engr.

Bonpin in Butuan City. (Source: DTI-Caraga)

• Proposed Expansion of Magellan Ceramica Enterprises of Butuan City. (Source: DTI-Caraga)

• Establishment of Eastern Petroleum in Buenavista, Agusan del Norte . (Source: DTI-Caraga)

• Oil Palm Crushing Plant in Barobo, Surigao del Sur. (Source: DTI-Caraga)

Tourism Development • The PhP1.5 Billion Butuan-Magallanes

7.55 km. road project is on track for

completion in 2022 which will connect

Centennial Tree and the beaches of the municipality of Magallanes and

Cabadbaran City. The Centennial Tree is

a top tourist spot in Agusan del Norte. (Source: Mike Crismund,

https://news.mb.com.ph/2019/02/27/p1-5-b-butuan-

magallanes-road-project-on-track-for-completion-in-

2022/)

• Installation of Eco-Sep or the Eco-friendly

Septic System in the municipality of Kitcharao as part to boost tourist attraction in the area. (Source: Dhel Nazario, https://news.mb.com.ph/2019/07/25/dost-launches-eco-sep-in-agusan-del-norte/)

Infrastructure Expansion

• Construction of a two-storey Government Command and Control Center (GCCC) of the Office of the Civil Defense Caraga Region at Brgy. Bancasi, Butuan City. (Source: http://www.butuan.gov.ph/news/ground-breaking-ceremony-construction-government-command-and-control-center

• On-going Phase I construction of DPWH-13 five-storey Regional Office Building at Brgy. Doongan, Butuan City. (Source: Department of Public Works and Highways – Caraga Facebook Page)

Hospital and Wellness Facilities • Construction of Butuan Adventist Wellness

and Medical Clinic, Inc. at Km. 3, Baan, Butuan City. (Source: msbunnybxu post at https://www.skyscrapercity.com/showthread.php?t=1457541&page=68)

• Expansion of Surigao Medical Center through the construction of a new multi-storey medical facility in Surigao City.

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Business Centers and Commercial Stores

• Vista Land & Lifescapes Inc. of Villar Group is set to complete a 20,000 sqm Vistamall Butuan located at Brgy. Ampayon, Butuan City. (Source: Manila Standard Business, http://www.manilastandard.net/business/corporate/284664/vista-land-to-build-seven-new-malls-in-next-2-years.html)

• Primeworld Land is set to establish a commercial and business district at Brgy. Baan, Butuan City. (Source: msbunnybxu post at https://www.skyscrapercity.com/showthread.php?t=1457541&page=68)

• Expansion of Robinsons Land Corporation’s Go Hotel facility in Butuan City.

• Construction of Citi Hardware store second branch at Brgy. Baan, Butuan City. (Source: msbunnybxu post at https://www.skyscrapercity.com/showthread.php?t=1457541&page=69)

• Construction of a three-storey Imperial Appliance Plaza located at JC Aquino Ave., Butuan City. (Source: msbunnybxu post at https://www.skyscrapercity.com/showthread.php?t=1457541&page=69)

• Construction of HINO Butuan Showroom at Km. 5, National Highway, Libertad, Butuan City. (Source: msbunnybxu post at https://www.skyscrapercity.com/showthread.php?t=1457541&page=69)

Transportation

• Go Mindanao, a subsidiary of Davao Metro Shuttle, adds new Butuan City – Surigao City v.v. route from exisitng Butuan City – Bislig City route.