Economy in Davao - Philippines
Davaos economy being among the most progressive in the country is still an uncontested fact to this day. And here are some factors explaining the economic boom of the province.
The main mover of the economy is the investment sector. Literally growing in leaps and bounds in the last two decades, investments in Davao have counted from millions to billions in the 1990s and on to this day. This investment boom is well supported by infrastructures, the right investment climate, peace and order situation, banking, and investment priorities and incentives.
With a work force of 1.2 million Davao is an excellent place for agro-industrial ventures, offshore annex offices, manufacturing, and other labor-intensive industries. In fact, Industrial and service sectors of the economy are 15 and 35 percent respectively, with the agricultural sector having about 45 percent of it. Fifty percent of Davao land is forest and timberland, 43 percent is agricultural, and the rest (for industrial, commercial, institutional and residential) is about 15 percent.
To open up its market to the world Davao has observed tariff reduction measures and easing up on the entry of foreign investments. It also eliminated mercantilism or extreme protectionism in favor of local fledgling industries, as well as cartels for a genuine free enterprise. In Davaos mind these are all economy boosters.
Davao has also invested much in building roads, bridges, air and sea ports, telecommunication facilities in the last decade precisely as infrastructures to boost up the economy. Its international airport is the busiest in southern Philippines since 1998 when modernization began, allowing the entry of more capacious Boeing 747 jet planes. The same with its seaports. Easy access to both local and foreign markets is a factor in the growth of the economy.
And we cannot underrate the importance of banks in an economy. Davao has some 141 banks, with their branches, actively involved in local and foreign transactions, as well more than 35 financing firms and some 460 lending agencies. We all know that money and currencies are the life blood of the economy.
Then we have the forwarders that help Davao send and receive products the faster way. We start with the postal deliveries handled by 18 post offices and then the forwarders, truckers, world-wide couriers, mobile communications, custom brokers and overnight mail and cargo or freight services.
Since 1993 Davao has been maintaining a sustainable growth in its economy with a single digit inflation rate since the same year. With a stable and promising economy Davao can well make it as a major tourist destination soon.