In 2024, the Davao Region reinforced its status as an economic powerhouse with 6.3% growth and a ₱1.08 trillion GRDP, keeping its hold as the country’s fourth-largest economy. But that same year, Northern Mindanao began to step into the spotlight, outpacing the national average growth of 5.7% and signaling its rising economic clout.
Northern Mindanao, officially known as Region X, comprises the provinces of Bukidnon, Camiguin, Lanao del Norte, Misamis Occidental, and Misamis Oriental. Cagayan de Oro City functions as its bustling regional hub.
Last year, the region’s economy surged past the trillion-peso mark, reaching ₱1.04 trillion. Driven by rapid industrial growth, a tourism rebound, and 187,000 new jobs, Northern Mindanao cemented its standing as a key contributor to national output. According to the Philippine Statistics Authority (PSA) Regional Director Janeth Aves, this marked a 6% increase from 2023, equivalent to ₱59.33 billion in added production.
As a result, the region accounted for 4.7% of the country’s total output and added 0.3 percentage points to the 5.7% national growth rate.
(Also read: Mindanao’s Energy Dilemma: Bridging Surplus to Sustainable Growth)
Growth drivers
Notable growth in Northern Mindanao was fueled by robust trade, expanding manufacturing, resilient agriculture, and a surge in construction, capped by the opening of the Panguil Bay Bridge, said the Department of Economy, Planning and Development (DEPDev).
According to outgoing Regional Development Council (RDC) Chairperson Imelda Quibranza-Dimaporo, the region’s per capita output surpassed ₱200,000, ranking third highest nationwide and among the fastest growing. “These are not mere statistics – more than 13,000 individuals have been lifted out from poverty according to statistics provided by the Department of Social Welfare and Development (DSWD) in the region,” she added.
Industry expansion powered the growth, rising 7.5% on the back of double-digit gains in construction and solid mining activity. Services followed closely with a 7.4% lift, boosted by tourism’s rebound. Agriculture, however, barely moved, posting just 0.1% growth despite the sector’s vast potential.
But with reliable and affordable energy, Mindanao could leverage its geography to replicate Vietnam’s economic rise, according to Professor Wali Del Mundo of the University of the Philippines Diliman. “Yung agricultural production dapat i-process doon mismo sa Mindanao (Agricultural production should be processed right in Mindanao),” he stressed. “Meaning magtayo ng maraming agro-industrial processing plants connected doon sa agricultural economy. (This means establishing more agro-industrial processing plants linked to the agricultural economy).”
Despite its sluggish agricultural growth, Northern Mindanao still ranked second nationwide in overall farm and fisheries output, valued at ₱155.28 billion, according to DEPDev Regional Director Mylah Faye Aurora Cariño. She added that inflation held steady at 3.7%, “stabilizing family household food budgets.”
However, many of Mindanao’s farmers and fisherfolk remain among the poorest. Mindanao Development Authority Deputy (MinDA) Executive Director Romeo Montenegro attributed this to limited electrification in key areas. “We need to be able to have a better planning and forecasting of our energy requirements attuned to the realities of our economic growth [and] in our inherent ability to deliver agricultural productivity,” he noted.
(Also read: P193-Million DOE Drive to Light Up Rural Areas)
Energy at the core of development
A decade ago, Mindanao incurred nearly ₱2 billion in losses from widespread power outages, according to Montenegro. A supply shortfall of 300 to 400 megawatts (MW) led to prolonged outages, including “13 hours brownout in Zamboanga, 13 hours in GenSan (General Santos City), 4 hours in some other areas, two hours in Davao.”
This challenge took center stage at the recent Mindanao Business Conference in Tagum City, where industry leaders and stakeholders underscored that dependable power and stable utilities are essential to keep pace with expanding industries.
At the conference, Meralco Senior Vice President Arnel D. Casanova said that dependable electricity is central to business continuity, noting that outages can paralyze operations. “If you run a manufacturing plant, a food processing facility, or even cold storage, an outage doesn’t just flicker the lights. It stops production. It destroys value,” Casanova noted.
Talks also focused on the reliability of utility providers, highlighting how distributors such as ECs significantly influence the quality and stability of power service. “Mindanao is already growing faster than the national average,” emphasized Casanova. “But if power is not made reliable, that growth will be stunted.”
He cited Batangas as an example, mentioning that stable power distribution helped attract industries and jobs, with the province posting a 14.1% compound annual growth rate in energy sales in areas with a reliable supply.
“The numbers speak for themselves. Mindanao is already growing,” Casanova declared. “With stronger utilities, it can grow like Batangas.”
He added that while land and labor may be cost-competitive, investors are unlikely to commit without reliable power. He emphasized that strong distribution attracts industries, fuels investment, generates jobs, and stimulates local economic growth.
Casanova also urged stronger collaboration with ECs, stressing that shared expertise and partnerships could drive Mindanao’s growth. “Together — Meralco, the electric cooperatives, and the business community — we can ensure that Mindanao achieves its full potential,” he said. “By strengthening its distribution backbone, we can build a stronger Mindanao and, in the process, a stronger Philippines.”
Sources:
https://rsso11.psa.gov.ph/content/davao-regions-economy-posts-63-percent-growth-2024
https://www.sunstar.com.ph/davao/davao-4th-fastest-growing-region
https://www.rappler.com/philippines/mindanao/northern-region-economy-growth-2024/
https://newsinfo.inquirer.net/2055863/value-of-northern-mindanao-economy-tops-trillion-peso-mark
https://www.rappler.com/brandrap/status-energy-security-visayas-mindanao
