Storms, power shortage, agriculture woes hamper growth — Bangko Sentral

Inadequate power supply, agriculture woes and extreme weather conditions continued to hold back regional economic development and activities in the country, according to the the latest report of Bangko Sentral ng Pilipinas.

In its “2012 Report on Regional Economic Developments,” the BSP said the lack of adequate supply of electricity threatens various economic activities," particularly in Mindanao.

It also pointed out the presence of different crop and livestock diseases and infestations in the regions, which pose risks to the country’s food self-sufficiency and the livelihood of agriculture-dependent communities.

Meanwhile, extreme weather conditions as a result of climate change have a significant impact in the regions, especially those that are heavily rely on agriculture.

However, the report said regional development would be expected to benefit from government’s various infrastructure improvement and development programs, as well as the expansion of the tourism sector on the back of improved transportation services.

The 8-percent growth projection of the Philippine Constructors Association will be propelled by the expansion in the business process outsourcing industry, sustained increase in emerging industries, OFW remittances and the public-private partnership program, Bangko Sentral noted.

In terms of banking services as of end-December 2012, the National Capital Region continued to have the highest number of banks relative to the number of cities/municipalities, with a density ratio of 176.06, the report also said. — BM/VS, GMA News