Economists in the government and academe agreed that Calabarzon Region’s stature as a manufacturing hub is poised for further growth but they pointed out that more interventions are needed to support the expansion of production activities as well as the movement of goods and raw materials.
The Philippine Statistics Authority (PSA) reported that the value of the five-province region’s economy breached the PHP3-trillion barrier in 2023.
Calabarzon also maintained its position as the second-largest contributor to the gross domestic product (GDP), accounting for 14.7 percent last year.
Only the National Capital Region (NCR) contributed more, accounting for 31.2 percent of the final tally in 2023.
However, Calabarzon narrowly missed its 6 to 7 percent gross regional domestic product (GRDP) target last year, growing by a still-respectable 5.2 percent.
In an interview on Friday, Roberto Galang, Jr., dean at Ateneo de Manila’s John Gokongwei School of Management, said more resources must be spent towards developing critical infrastructure that support manufacturing operations in the region.
Specifically, he suggested that Calabarzon’s air and seaports and its network of highways be further enhanced to ensure seamless transportation of products.
“The CALAX (Cavite-Laguna Expressway) project is designed to make it easier for trucks to go around and deliver goods to the ports. They need to enhance connectivity and productivity of Batangas Port,” he told the Philippine News Agency.
“Calabarzon is the industrial hub of the Philippines. It hosts many of our economic zones. A lot of our local manufacturing capacity is there, especially in Cavite, Laguna and Batangas. So if this region falls short, then that may mean a slowdown in manufacturing growth,” Galang noted.
Meanwhile, Agnes Tolentino, regional director of the National Economic and Development Authority (NEDA), said that key government initiatives topbilled by the continued expansion of economic zones, various export promotion activities and even the Small Enterprises Technology Upgrading Program will play crucial roles in driving the region’s growth.
Calabarzon’s tourism sector flourished, with 29.17 million tourists recorded in 2023, thanks to initiatives like the Department of Tourism’s Philippine Experience Program, she added.
Also, construction activities saw a 14.8 percent growth, propelled by government projects like the Pambansang Pabahay Para sa Pilipino program, Tolentino further reported.
The NEDA official explained that while there has been strong emphasis on the industrial side of Calabarzon’s progress, the government has also lined up projects to boost the sub-optimal performance of the region’s agricultural sector.
These projects include the Kaliwa Dam Project, also called the New Centennial Water Supply Project, which is envisioned to irrigate farms in the region even through droughts.
“Despite challenges, Calabarzon remains optimistic about its economic future, with proposed projects focused on infrastructure and social sector development. Collaboration among stakeholders is crucial to achieving the targeted GRDP growth rate,” Tolentino emphasized. (PNA)
