The economy of Oriental Mindoro recorded a growth of 5.1 percent in 2023, according to the Philippine Statistics Authority’s (PSA) Provincial Product Accounts (PPA) released the other day.

The growth rate, based on constant 2018 prices, reflects the province’s continued recovery and expansion, albeit at a slower pace compared to the 8.2 percent growth in 2022.

The province’s Gross Domestic Product (GDP) rose from P109.41 billion in 2022 to P114.96 billion in 2023. This indicates the third consecutive year of economic growth after the disruptions brought by the COVID-19 pandemic.

The services sector remained the backbone of Oriental Mindoro’s economy, contributing 51.8 percent to the total GDP. This sector also exhibited notable growth rates across its key industries.

Accommodation and food services led the sector’s growth with a strong 25.1 percent increase in 2023, following an even higher 30.9 percent growth in 2022.

Transportation and storage came second, growing by 13.2 percent, down from 25.0 percent in the previous year.

Wholesale and retail trade, as well as financial and insurance activities, also posted steady growth at 2.7 percent and 7.1 percent, respectively.

The province’s dependence on the services sector proves its growing focus on tourism, commerce, and public services.

The industry sector, which accounted for 32.2 percent of Oriental Mindoro’s GDP, experienced a modest 0.1 percent decline in 2023, a sharp contrast to its 10.3 percent growth in 2022.

Mining and quarrying suffered the steepest contraction, declining by 11.7 percent, following a growth of 3.3 percent in 2022.

That downturn was partially offset by the construction industry, which continued to grow, albeit at a slower rate of 11.2 percent in 2023 compared to 17.4 percent in 2022.

Manufacturing registered moderate growth at 5.0 percent, showing resilience despite economic headwinds, while electricity, steam, water, and waste management expanded by 5.5 percent.

The agriculture, forestry, and fishing (AFF) sector, which holds a share at 16.1 percent of GDP, grew by 12.4 percent in 2023. This reveals a remarkable acceleration from its sluggish growth of 0.8 percent in 2022.

The sector’s improved performance also manifests ongoing recovery efforts, including investments in sustainable farming and fisheries, which are critical to the livelihoods of many local residents.

Agriculture, forestry, and fishing remained the largest contributor to GDP among specific industries, accounting for 16.1 percent of the province’s economic output.

Manufacturing ranked second with a 15.8 percent share, while wholesale and retail trade, including repair of motor vehicles and motorcycles, followed at 14.5 percent.

Despite the positive overall growth, the deceleration from the 8.2 percent growth rate in 2022 indicates challenges in sustaining economic momentum.

The decline in mining and quarrying and the slower growth in construction may reflect deeper structural issues or external economic pressures.

However, the surge in the agriculture sector and consistent expansion in services provide opportunities for sustainable growth.

The provincial government’s focus on boosting tourism, enhancing local infrastructure, and supporting small businesses could further diversify Oriental Mindoro’s economic base.

“The data from the 2023 Provincial Product Accounts shows that Oriental Mindoro is well-positioned for the future,” PSA said. “By diversifying its economy, investing in sustainability, and nurturing its skilled workforce, the province is setting the stage for long-term, equitable growth that will benefit all its residents.”

Photo credit: Featured photo courtesy of rgv-group.com