Recent news reports quoted Dennis M. Arroyo, Director of NEDA’s National Planning and Policy Staff that the country’s gross domestic product (GDP) is likely to sustain a 5.3 to 5.8 percent growth in the second quarter (April to June). This is attributed to the good performance of the agriculture sector and rising exports. GDP refers to the total value of goods and services produced in the country.

The regional version of this is called – Gross Regional Domestic Product (GRDP).

Our GRDP trend is expected to follow that of the country, largely due to the absence of major calamities and sufficient rainfall – the same general experience nationwide.

If GRDP grows at the 5.3 to 5.8 percent rate, then this would be better than last year’s 4.0 percent growth.

While we may be happy about a 5.8 percent growth, this is still lower than the 6.4 percent growth targeted for 2006 in the Eastern Visayas Medium Term Development Plan.
To achieve that growth rate, more investments (say 20 percent more) are needed.

The implementation of projects that directly affect GRDP should, therefore, be a priority. These would include irrigation, roads, ports and airports.

Widespread technology transfer in agriculture will also be a big boost.

There are other sectors which show considerable promise and can rise up to the occasion such as small and medium industries and Information and Communications Technology (ICT), particularly if they are able to export their products and services.

These are signals that we need the “pump priming” I mentioned in last week’s column.

Statistics like these clearly show what needs to be done. These are inputs to planning and project identification which our decision makers must be conscious of.

GDP and GRDP are not just statistics. From a macro or general perspective, they tell us where we are and what more do we need to do to get to where we want to be in economic development.