Friday, April 22, 2011

Economy of Davao

Davao City is the premier city and economic hub of Mindanao. The City's steadily growing economic activity, skilled workforce, urbanization and modern amenities have made Davao City the most important economy in the Mindanao, and the third most important urban center in the Philippines. Current revenue statistics show Davao City is the fifth-richest city in the Philippines in terms of local income and IRA – the only city outside Manila in the top five.

Davao City operates on an economic system that is market-oriented. Pricing mechanisms remain regulated in a few sectors to protect its consumers, particularly on basic commodities. The competitiveness of the market has been enhanced and sustained through the dismantling of protection for “infant industries”, and the breakdown of industries with monopolistic or cartel tendencies.

In the international scene, the economy of Davao City has opened its doors to global competition. In the last two decades, the economy has steadily grown through tariff and private investments. With close to 1.5-Million people as primary market base, the city has become conducive to business. Many of the country’s top 200 companies have established their offices and made substantial investments in the city. The steady Inflow of investments has been remarkable in the last ten years. 

Exports has turned into a billion dollar industry with an ever growing market for its local products. The abundant supply of banana and pineapple products are among the country’s leading export commodities. A net exporter since 1987, Davao City largely contributed in making the Philippines as the world’s top exporter of papaya, mangosteen, and even flowers.

The productive linkages between established businesses in Davao City have reinforced the competitive quality of life of its people. Since 1993, the city has consistently maintained a single digit inflation rate. The low inflation rate is indicative of the remarkable gains from Davao City’s sustained competitiveness, both in the local and international market, nurtured by the high level of responsiveness of its local government in facilitating business-friendly initiatives, and in ensuring a peaceful and prosperous environment conducive to investments.

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