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North Luzon Regional Economic Situationer For Cy 2022
North Luzon Regional Economic Situationer For Cy 2022
North Luzon Regional Economic Situationer For Cy 2022
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2022 Cagayan Valley Regional Economic Situationer
LIST OF FIGURES
No. Figures
1 Inflation Rate, Region 2, 2021 - 2022
2 Average Inflation Rate by Commodity Group, Region 2, 2021 and 2022
3 Employment Statistics, Region 2, 2021 and 2022
4 Palay Production, Region 2, 2021 and 2022
5 Corn Production, Region 2, 2021 and 2022
6 Livestock Production, Region 2, 2021 and 2022
7 Poultry Production, Region 2, 2021 and 2022
8 Fisheries Production, Region 2, 2021 and 2022
9 Other Animals Production, Region 2, 2021 and 2020
10 Cellsites in Region 2, 2021 and 2022
11 Frequency Channels in Region 2, 2021 and 2022
12 Location and Tower Reach of Cell sites in Region 02, 2022
13 Production of Non-metallic Commodities, Region 2, 2021 and 2022
14 Revenues from Non-metallic Commodities, Region 2, 2021 and 2022
15 Motor Vehicle Registered, Region 2, 2021 and 2022
16 Licenses and Permits Issued, Region 2, 2021 and 2022
17 Volume of Aircraft Operation, Region 2, Third Quarter 2021 and 2022
18 Volume of Passenger Movement, Region 2, Third Quarter 2021 and 2022
19 Volume of Cargo Movement, Region 2, Third Quarter 2021 and 2022
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2022 Cagayan Valley Regional Economic Situationer
LIST OF TABLES
No. Tables
1 Average Inflation Rate by Commodity Group, Region 2, 2021 and 2022
2 Average Inflation Rate across Regions, 2022
3 Selected Employment Indicators, Region 2, 2021 and 2022
4 Volume of Palay Production in Metric Tons, by Province, Region 2, 2021 and 2022
5 Volume of Corn Production in Metric Tons, by Province, Region 2, 2021 and 2022
Production Estimates for Livestock and Poultry in Metric Tons, Region 2, 2021 and
6 2022
iii
1 MACROECONOMY
The average inflation rate in Cagayan Valley settled at 5.2 percent in 2022, 0.6 percentage
points lower than the national average, but still exceeding the 2.0 to 4.0 percent target range.
Inflation eased relative to the previous year due to the reopening of the economy and to base
effect, but elevated global oil prices placed upward pressure on inflation.
The labor situation presents a more optimistic situation, as the region maintained a high
employment rate, averaging at 96.3 percent for the year, surpassing the national average and
the previous year’s record. Underemployment also improved from 19.2 percent in 2021 to 16.5
percent in 2022.
1.1 Inflation
Inflation in Cagayan Valley was slow as the year opened due to base effect, and to the
reopening of the economy. However, inflation accelerated when the Ukraine-Russia crisis
caused global oil prices to surge. It maintained an upward path except for a slight dip in
August. The full-year rate in the region settled at 5.2 percent, lower than the 2021 average at
6.2 percent, but still above the 2.0 to 4.0 percent target range. Among regions, Cagayan Valley
registered the third lowest inflation rate in 2022, recovering slightly after recording the highest
inflation rate among regions in 2021.
8.5
7.6 7.8
8.0
7.0 7.1
6.7 6.5 6.7 6.8 6.5
6.8
6.3 6.3
5.9
6.0 5.6
5.1 5.3 5.2
4.5 4.6
4.0 3.3
2.9
1.7 1.9
2.0
0.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2021 2022
2018 = 100
Source: Inflation Reports, PSA
Food inflation significantly slowed down compared to last year. However, among commodity
groups, food and non-alcoholic beverages was the biggest contributor to inflation in 2022 due
to its heavy weight in the consumer basket. Sugar, oil, milk, and corn, in particular, exhibited
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2022 Cagayan Valley Regional Economic Situationer
huge price increases. Supply constraints and higher input costs, particularly for fuel and
fertilizers contributed to these increases. Lower rice prices helped temper food inflation.
Housing, water, electricity, gas, and other fuels also contributed significantly to inflation, as
global oil prices remain elevated. Transport commodities, particularly diesel and gasoline, and
passenger transport by air and by sea, were similarly affected by the global oil price hikes.
Despite this, transport inflation was lower this year than last year, as pandemic restrictions
eased, resulting in the slower increase in prices of passenger transport by road and purchase
of vehicles.
Price increases of alcoholic beverages and tobacco also accelerated due to higher taxes
imposed by RA 11346 on sin products.
Recreation, sport and culture, and personal care and miscellaneous goods and services also
posted higher inflation rates as recreation centers reopened. Education services registered
higher inflation with the resumption of face-to-face learning. Inflation of information and
communication commodities also ticked higher as ICT became ubiquitous in the new normal.
Furnishing, household equipment and routine household maintenance also increased faster.
The rest of the commodity groups showed slower price increases during the quarter.
2018 = 100 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
Source: Inflation Reports, PSA
1.2 Employment
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2022 Cagayan Valley Regional Economic Situationer
Employment in Cagayan Valley remained high throughout the year, according to the results of
the quarterly Labor Force Survey conducted by the Philippine Statistics Authority. The
employment rate in January 2022 was recorded at 95.7 percent, lower than the previous
survey period due to the closures brought in part by the Omicron variant, and the surge in
COVID cases during the survey period. Employment improved to 96.2 percent in April and 97.2
percent in July. Cagayan Valley had the highest employment rate among regions for three
survey periods, before employment declined slightly to 96.3 percent in October.
The region recorded an average employment rate of 96.3 percent, surpassing the national
average at 94.5 percent. The labor force participation rate was also higher for the region at
65.1 percent than the national average at 63.3 percent. There were 70 thousand more
employed workers and 29 thousand less unemployed workers in the region in 2022 compared
to the previous year.
75
64.4 65.1
50
25 19.2
16.5
0
Labor Force Participation Employment Rate (%) Underemployment Rate (%)
Rate (%)
2021 2022
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2022 Cagayan Valley Regional Economic Situationer
2 AGRICULTURE
Palay production increased slightly in Cagayan Valley for 2022 due to production increases in
Batanes, Cagayan, and Isabela, while corn production increased across all provinces. Cattle
production increased, but carabao and goat production decreased. Hog production decreased
significantly due to African Swine Fever (ASF) outbreaks, and carabao production is expected
to decrease further due to anthrax. Chicken production decreased in Cagayan Valley, but
chicken egg production increased, as did duck production, although duck egg production
decreased. Aquaculture production increased, but commercial and municipal fisheries
production decreased due to fuel costs and weather conditions. Horse and rabbit production
increased, as did turkey and goose production.
2.1 Palay
Palay production slightly increased by 0.63 percent, or 18.22 thousand metric tons more than
the 2.9 million metric tons produced in 2021. This slight increase was achieved through the
rise in palay production in Batanes, Cagayan, and Isabela, which was able to offset the
decrease in palay production in Nueva Vizcaya and Quirino. Isabela is responsible for 49.78
percent of the overall palay production in the region, followed by Cagayan, contributing 36.49
percent. The remaining 13.73 percent of total palay production came from Batanes, Nueva
Vizcaya, and Quirino.
While the increase in palay production in 2022 may not be as substantial as in previous years,
the region managed to increase its production in contrast to the national trend, which saw a
decline of 1.01 percent, or 203.78 thousand metric tons less than the 19.96 million metric tons
of palay produced in 2021. Cagayan Valley remains the second-highest palay-producing
region in the country, contributing 14.82 percent to the national production, with Central Luzon
leading at 18.31 percent.
1,200
Volume ('000 metric tons)
1,052 1,068
1,000
800
600
2021 2022
Source: PSA
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2022 Cagayan Valley Regional Economic Situationer
2.2 Corn
The production of corn rose by 3.65 percent in 2022, which is equivalent to an increase of
68.94 thousand metric tons over the 2021 production. This is attributed to the increase in
production across all provinces. Isabela is responsible for 55.86 percent of the total corn
production in the region, followed by Cagayan with a contribution of 31.12 percent. Quirino
accounts for 8.92 percent of the corn produced, Nueva Vizcaya contributes 4.08 percent, and
Batanes with a minimal share of 0.02 percent to the overall corn production.
With a corn production of 1.96 million metric tons in 2022, Cagayan Valley continues to
maintain its position as the leading corn-producing region in the country, contributing 23.74
percent to the overall production. Northern Mindanao is the next top contributor, with a 17.89
percent share in the national corn production, followed by the Bangsamoro Autonomous
Region in Muslim Mindanao with a 13.84 percent contribution.
1000
Volume ('000 metric t ons)
800
594 610
600
400
175
200 141
76 80
0.28 0.40
0
Batanes Cagayan Isabela Nueva Vizcaya Quirino
2021 2022
Source: PSA
2.3 Livestock
For 2022, cattle production experienced a significant increase of 2.89 percent, resulting in an
additional 387.79 metric tons in the volume of cattle produced. The production of carabao
and goat, however, both faced a decline of 1.77 percent and 1.94 percent, respectively.
ASF continued to have a significant impact on hog production. In comparison to the total
volume of hogs produced in 2021, there was a sharp decrease of 19.20 percent, which is
equivalent to 7.62 thousand metric tons. The ASF outbreak prompted the culling of infected
hogs in the region in order to prevent the spread of the virus.
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2022 Cagayan Valley Regional Economic Situationer
39.67
40.00
Volume ('000 metric tons)
32.05
30.00
20.00
13.41 13.80
1.40 1.37
-
Carabao Cattle Hog Goat
2021 2022
Source: PSA
2.4 Poultry
Chicken production in Cagayan Valley dipped by 13.52 percent, which is in contrast to the 6.98
percent increase in national production. This decrease is equivalent to 8.03 thousand metric
tons. Across regions, Cagayan Valley ranked 11th in terms of volume of chicken produced. On
the other hand, chicken egg production in Cagayan Valley increased by 3.12 percent. This
translates to an increase of 476.69 metric tons of chicken eggs produced in 2022, making the
region the 10th largest producer of chicken eggs nationwide during the year.
In the same year, duck production increased by 9.47 percent in the region, better than the
nationwide performance which is a decrease of 9.79 percent for the same commodity.
Cagayan Valley ranked fourth nationwide in terms of duck production. In terms of duck egg
production, Cagayan Valley registered a decline of 9.20 percent in 2022, which is in contrast
to the 10.28 percent increase in national production. Across regions, Cagayan Valley ranked
sixth in terms of duck egg production.
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2022 Cagayan Valley Regional Economic Situationer
59.45
60.00
51.41
50.00
40.00
30.00
10.00
2.19 2.40 2.11 1.92
-
Chicken Duck Chicken eggs Duck eggs
2021 2022
Source: PSA
2.5 Fisheries
In 2022, there was a slight increase of 2.39 percent or 1,072 metric tons in fisheries
production. This was due to the 10.24 percent increase in aquaculture production, which
offset the production losses from commercial fisheries that posted a 2.18 percent decline
and municipal fisheries that posted a1.04 percent decline.
The significant increase in aquaculture production was mainly due to the expansion of
production areas, as well as the availability and distribution of fingerlings by the DA-BFAR and
PLGUs. The decrease in commercial fisheries production was attributed to dry docking of
fishing vessels caused by rising fuel costs and other operating expenses. The decline in
municipal fisheries production was attributed to several typhoons that hit the region. This
resulted in the reduction of fishing operations in 2022.
Cagayan maintained its position as the top fish producer in the region, contributing 69.35
percent to the total production in 2022. However, this shows a decline in Cagayan's
percentage share during the previous year at 71.25 percent. Isabela remained as the second
top producer of fish in the region, accounting for 21.68 percent share of the total production.
This shows an increase in its share in 2021, which was recorded at 20.71 percent.
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2022 Cagayan Valley Regional Economic Situationer
15.47
Volume ('000 metric tons)
15.00 14.03
0.00
Marine Inland
Commercial Municipal Aquaculture
2021 2022
Source: PSA
There was also a significant increase in the production of turkey and goose for the period.
Turkey production increased by 50.2 percent, which is equivalent to 29.18 metric tons more
than the 58.18 metric tons produced in 2021. Goose production showed an impressive leap
of 5,626 percent, which is equivalent to 41.07 metric tons more than the 0.73 metric tons
produced in 2021 for the same commodity.
80
58.18
60
41.80
40
20 14.60
2.06 0.73
0
Horse Rabbit Goose Turkey
2021 2022
Source: PSA
3.1 Communication
In 2022, an additional 73 cell sites were constructed in Cagayan Valley, resulting in a 14.8
percent increase over the 492 cell sites during the previous year. Figure 12 shows the location
of all cell sites throughout the region. Isabela has the largest share with 42.5 percent of the
cell sites, followed by Cagayan with 38.14 percent, and Nueva Vizcaya with 14.0 percent. The
remainder is shared by the provinces of Quirino and Batanes.
150
100 71 79
50 21
12 10 18
0
Batanes Cagayan Isabela Nueva Vizcaya Quirino
During the year, the quantity of frequency channels grew by 29.9 percent. In 2022, an extra
1,849 frequency channels were added to the existing 6,181 channels in 2021. This increase is
attributed to the advancement of telecommunications equipment. Except for Batanes, all
provinces experienced an increase in frequency channels. The reduction of a single frequency
channel in Batanes is attributed to the implementation of the Common Tower Policy among
telecommunication firms. This policy aims to optimize tower utilization while minimizing the
cost of constructing new ones.
2000
1044
1000 812
223 314
134 133
0
Batanes Cagayan Isabela Nueva Vizcaya Quirino
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2022 Cagayan Valley Regional Economic Situationer
Figure 12. Location and Tower Reach of Cell Sites, 2022, Region 2
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2022 Cagayan Valley Regional Economic Situationer
In 2022, a total of 59,867 dry metric tons of copper concentrates was produced. This is an
increase of 483 percent over the production in 2021. Due to the renewal of Oceana Gold's
Financial or Technical Assistance Agreement (FTAA) in July 2021, the production of copper
concentrates resumed only in the second half of 2021. Nickel production also commenced in
2022 through the Isabela Nickel Mining Project by Dinapigue Mining Corporation, producing
nearly 260 thousand dry metric tons and generating a revenue of PHP 512.8 million.
Table 1. Volume of Production and Revenue Generated from Metallic Commodities, Region 2, 2021 and 2022
Production Revenue (PHP Million)
Commodity
2021 2022 2021 2022
Copper Concentrates
10,267.00 59,867.00 30.25 2,943.06
(Dry Metric Ton)
Gold (kilogram) 2,259.80 2,193.34 7,727.01 11,673.79
Silver (kilogram) 1,375.73 1,339.44 85.14 245.27
Nickel (Dry Metric Ton) - 259,566.38 - 512.79
Source: MGB
Non-metallic
Last year, the production of sand and gravel, which constitutes more than half of all non-
metallic commodity output, declined by 45.5 percent to 1.9 million cubic meters. The
production of pure sand also decreased by 36.3 percent to 163,055 cubic meters. However,
the production of mountain soil saw a significant increase of 41.5 percent, followed by an
increase of 9.3 percent in coarse sand production. The production of boulders remained
almost the same as the previous year, totaling around 65,513 cubic meters. As a result, the
revenue from non-metallic commodities in 2022 fell to PHP 330.3 million, a 34 percent drop
from the previous year. This decline in revenue was mainly caused by a decrease in revenue
from pure sand and gravel, which exceeded the revenue growth from mountain soil and coarse
sand.
Figure 13. Production of Non-metallic Commodities, Figure 14. Revenues from Non-metallic Commodities,
Region 2, 2021 and 2022 Region 2, 2021 and 2022
2,500 450
= 2.6 million cu.m. 399.5 2021 = PHP 500.4 million
2021
= 1.9 million cu.m. 2022 = PHP 330.3 million
2022
1,907
Volume (in thousand cubic meter)
2,000
Revenues (in million PHP)
300
1,500
211.1
1,040
1,000
150
584
413 87.1
500 60.8
3.3 Transportation
256
163 66 19.4
40 44 65 19.3 11.3 1.4 1.5 19.4
0 0
Sand and Pure Coarse Boulders Mountain Sand and Pure Sand Coarse Boulders Mountain
Source: MGB
Gravel Sand Sand Soil Gravel Sand Soil
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2022 Cagayan Valley Regional Economic Situationer
Land
In 2022, there was a notable increase in vehicle registration at the Land Transportation Office
(LTO), with a 7.4 percent rise compared to 2021 figures. This growth was primarily driven by
the 10.4 percent surge in renewals, while new registrations experienced a modest 0.1 percent
uptick.
In addition to the growth in vehicle registration, there was a remarkable rise in licenses and
permits issued during the year. Total licenses and permits reached 232,386, more than double
the number issued during the previous year. As to category, majority were professional
licenses, accounting for 39.7 percent of the total, while non-professional licenses closely
trailed behind. Most of these licenses and permits were given to male applicants, making up
about 84 percent of the total.
Consequently, revenue generated by the LTO for the whole year increased by 20.2 percent, or
from PHP 834.5 million in 2021 to PHP 1.003 billion in 2022.
Figure 15. Motor Vehicle Registered, Figure 16. Licenses and Permits Issued,
Region 2, 2021 and 2022 Region 2, 2021 and 2022
500
140
431
120 115
390
Licenses and Permits ('000)
400
100
Registered Vehicles ('000)
80
80
300
56
60
40 35
200
161 161 25
17
20 13
4
100
-
Male Female Male Female
Source: LTO
2021 2022
-
New Renewal New Renewal
2021 2022
Air
In 2022, the aircraft industry showed signs of recovery as there was a significant improvement
in aircraft operations. The number of aircraft landings and takeoffs reached 15,518 and
15,488, respectively, which is a significant increase of 68 percent compared to the previous
year. Passenger arrivals saw the most significant growth, with a 210 percent increase, while
departures increased by 190 percent. The volume of cargo movement also recovered, with an
82 percent growth in the volume of cargoes unloaded, and a 48 percent growth in those
loaded, compared to the previous year.
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2022 Cagayan Valley Regional Economic Situationer
15,518 15,488
16,000
12,000
9,225 9,239
8,000
4,000
-
Landing Take-off
2021 2022
Source: CAAP
150,000
100,000
58,855 61,431
50,000
-
Arrival Departure
2021 2022
Source: CAAP
2,000 1,760
500
-
In/Unloaded Out/Loaded
2021 2022
Source: CAAP
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2022 Cagayan Valley Regional Economic Situationer
3.4 Tourism
The tourism industry is on a consistent recovery path as the region welcomed 2,036,087
tourists in 2022, which is 291 percent more than the arrivals recorded in 2021. The industry
brought in an estimated PHP 4.82 billion in tourist gross receipts, representing an increase of
217 percent relative to the previous year. However, recorded arrivals for the year is still 36
percent lower than that recorded in 2019, before the entry of the COVID-19 virus in the country.
Same-day excursions to local attractions monitored by the local government units (LGU)
accounted for 73 percent of the total arrivals, and overnight guests made up the rest. The
number of same day visits is catching up with pre-pandemic figures, faster than overnight
visits, as the former jumped by 332 percent from 2021. The number of overnight visits as
reported by DOT-accredited establishments also grew by 212 percent, but this performance
is still 56 percent lower than its 2019 record.
2,210
2,000
1,493
1,000
698
544 605
346
174
0
Overnight Same day Overnight Same day
Arrivals (thousands) Receipts (million PHP)
2021 2022
Recovery of the sector was hampered by the surge in COVID-19 cases and the resulting
quarantines during the first quarter. It picked up during the summer season during the second
quarter, but last quarter arrivals ultimately contributed the biggest share to the total arrivals,
accounting for 43.7 percent of the year-long record.
Local tourism kept the industry afloat, as domestic tourists accounted for 99.4 percent of the
guests. Foreign guests only totaled 11,627, equivalent to only 7.0 percent of the recorded 2019
foreign arrivals. This highlights an opportunity for further recovery and strengthening of the
industry.
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2022 Cagayan Valley Regional Economic Situationer
The regional office of the DOT, in collaboration with LGUs and tourism industry stakeholders
undertook several initiatives to boost tourism in the region. Four tourism circuits, namely,
“Quirino - Your Basket of Happiness”; “Feel the Vibe Nueva Vizcaya”; “Santa Ana - Your
Adventure Paradise”; and “Zininnaga na Tuguegarao” were launched. Tourism stakeholders
participated in the Tourism Industry Skills Program. The DOT also extended training packages
known as Assistance in Development to community-based tourism. The region also
conducted a travel exchange program with travel agencies and tour operators from other
regions to introduce to them to tour packages in Quirino and Nueva Vizcaya.
Approved foreign investments jumped by 2,364 percent, growing its share to 25.5 percent of
the approved investments in the region. On the other hand, approved investments from Filipino
nationals shrank by 11.5 percent, although it still comprised bulk of the investment
commitments for 2022.
7,000
1,825.01
6,000 74.08
5,000
Million PHP
4,000
3,000 6,034.34
5,339.06
2,000
1,000
-
2021 2022
Source: PSA
1
The nine investment promotion agencies are Authority of the Freeport Area of Bataan (AFAB), Board of
Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Cagayan
Economic Zone Authority (CEZA), Clark Development Corporation (CDC), Philippine Economic Zone Authority
(PEZA), Subic Bay Metropolitan Authority (SBMA), and Tourism Infrastructure Enterprise Zone Authority (TIEZA)
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2022 Cagayan Valley Regional Economic Situationer
Approved investments in the region accounted for only 0.8 percent of the total. Around 25.3
percent of the investment commitments were intended for nationwide projects. Among
regions, CALABARZON had the biggest share at 20.0 percent followed by Central Luzon at
18.2 percent.
Figure 22. Locators, Employment and Actual Capital Investments at CSEZFP, 2021 and 2022
150 4000 20
139
133
17.0
15.5
2,925 15
3000
2622
100
2000 10
50
1000 5
0 0 0
2021 2022 2021 2022 2021 2022
Actual Capital Investments
Locators Employments
(PHP billion)
2021 2022
In terms of capital investments, real estate, mineral processing and exportation, and gaming
operations had the biggest shares, collectively accounting for more than half of the total
capital investments at the Freeport.
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2022 Cagayan Valley Regional Economic Situationer
4 REVENUE COLLECTION
The Bureau of Internal Revenue Region 3 Office (Cagayan Valley) reported a 13.2 percent
increase in its revenue collection in 2022 compared to the previous year. With the exception
of excise taxes, which decreased by 46.4 percent, other sources of income saw increases,
bringing the total to PHP 10.3 billion. The reason for the growth in revenue was the continued
implementation of revenue enhancement measures which are intended to increase voluntary
compliance.
With the exception of Quirino, every province had double-digit growth in revenue collection in
2022. The largest gain was reported by Nueva Vizcaya (20 percent), followed by Cagayan/
Batanes (14.3 percent) and Isabela (11.7 percent).
Figure 23. Tax Collection per Source of Income, Region 2, 2021 and 2022
7,000 6,642
6,000 5,687
Collection (in million PHP)
5,000
4,000
3,000 2,244
2,200
2,000
The BIR has planned major initiatives for 2023 that will enhance taxpayer services and
guarantee the achievement of its revenue collection goals. Among these are the Run After Tax
Evaders (RATE) Program, Oplan Kandado, and Information and Communications Technology
Solutions to boost tax education and public awareness, while enhancing taxpayer services.
The BIR Digital Transformation Program aims to innovate BIR services and improve taxpayer
services, while also transforming the agency into a data-driven organization through the use
of a digitally empowered and resilient workforce, and reliable, scalable, and robust digital
technologies and infrastructure.
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2022 Cagayan Valley Regional Economic Situationer
The number of cases of gender-based violence in 2022 decreased marginally to 1,230. The
decrease in cases reported in Santiago City and Nueva Vizcaya partially offset the rise in
cases in the other provinces. Among the cases reported were violations of RA 9262, otherwise
known as the Anti-violence against Women and Children Act of 2004, rape, acts of
lasciviousness, gender-based sexual harassment or violations of RA 11313, otherwise known
as the Safe Spaces Act, and other violations of different provisions of the Revised Penal Code.
8,000
6,000
3,751
4,000
3,087 3,098
2,000
855 958
0
Index Crime Non-Index Crime
Peace and Order Indicator Public Safety Indicator
2021 2022
Source: PRO2
The efficiency of crime clearance dropped slightly to 98.89 percent, as compared to the 99.86
percent recorded the previous year. Similarly, the efficiency of crime solution also decreased
to 82.3 percent, from the 87.9 percent recorded in 2021. A crime is considered cleared when
a case is filed in court with at least one suspect identified, and is considered solved when a
suspect is arrested.
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2022 Cagayan Valley Regional Economic Situationer
To improve these rates, the PNP is conducting in-depth follow-up investigations and regular
case conferences to resolve unsolved and uncleared cases. Additionally, the construction of
one-stop-shop buildings and police stations is expected to enhance police services'
accessibility and visibility, possibly serving as a deterrent to crime.
6 DEVELOPMENT PROSPECTS
Business Outlook and Consumer Expectation
The outlook of respondent firms in the region for the year 2023 is more optimistic, as reported
in the Business Expectations Survey conducted by the Bangko Sentral ng Pilipinas (BSP)
during the fourth quarter of 2022. Firms cited the easing of travel restrictions and return of
businesses to normal operations, full face-to-face classes in public schools, and the lifting of
passenger capacity restrictions in public transport which could translate to an increase in
consumer demand. This is in contrast to the dampened business confidence in most regions
including the NCR, as respondents expressed concern over higher inflation rates, weaker peso,
lower demand, and higher interest rates.
Consumer sentiment in the country for the year 2023 also became less optimistic during the
Consumer Expectations Survey conducted by the BSP in the fourth quarter of 2022. The
weakened outlook is attributed to the faster increase in the prices of goods, low income,
higher household expenses, and fewer available jobs.
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2022 Cagayan Valley Regional Economic Situationer
The following are major projects in the pipeline, for which feasibility studies were already
completed:
• Quezon – Delfin Albano Road;
• Ramon – San Isidro – Echague Road;
• Ramon Bypass Road;
• Baybayog Bypass Road;
• Roxas Diversion Road;
• Quezon – Diffun Diversion Road; and
• Luna – Burgos Diversion Road
Other Developments
• The Cagayan Valley Regional Development Plan 2023 – 2028 will be completed by the
first quarter. The plan lays down the strategies that the region will employ in pursuing
the priorities of the administration and achieving medium-term goals laid down in the
Philippine Development Plan. These priorities include modernizing agriculture and
agri-business, revitalizing the industry sector, and reinvigorating the services sector.
• The country’s growth is expected to slow down in 2023 due to uncertainties associated
with high inflation, monetary tightening, and a slowing global economy. Foreign news
that may impact the local economy include the Ukraine – Russia crisis, and China’s
vulnerability to COVID-19.
• The US government has already reached its debt ceiling, which could negatively affect
the US economy and the global economy. A default may lead to a rise in US interest
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2022 Cagayan Valley Regional Economic Situationer
rates and a resulting depreciation of the US dollar, which the Philippines presently uses
to hold its foreign reserves. A US debt default could trigger a global financial crisis.
• The BSP raised its benchmark interest rate by 25 basis points in March 2023 to 6.25
percent, the highest since May 2007. This brought the total hike delivered by the BSP
since May 2022 to 425 basis points. This tightening is meant to temper the surging
inflation in the country.
• At the national level, local manufacturers seek price hikes on basic goods and prime
commodities due to higher production costs. Production costs are driven upward by
the prices of imported raw materials and packaging materials, and logistics costs,
particularly the use of fuel for the distribution of goods.
• DA is also on guard against the infestation of Avian Flu among chickens, after
thousands of layers were culled in Isabela in 2022. This disease, along with rising
prices of production inputs, particularly feeds, have caused a rise in egg prices.
02-06-2022 Supporting the Information Sharing Between the Bangko Sentral ng Pilipinas and
Local Government Units on Pawnshops and Money Service Businesses
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2022 Cagayan Valley Regional Economic Situationer
02-49-2022 Enjoining Concerned Local Government Units to Adopt the Cagayan Valley
Smarter City/ Community Belt: Exploring New Growth through Innovation and
Nurturing Engagement of Smart Solutions
ExCom Referendum
June 20, 2022
RDC2 ExCom Endorsing the Request for Funding for the Conduct of a feasibility Study of the
Reso No. 02-01 Proposed Bagabag-Diadi Alternate Route in Nueva Vizcaya to the Department of
Public Works and Highways
Reso No. 02-02 Endorsing the Request for Funding for the Conduct of a Feasibility Study of the
Proposed Nueva Vizcaya-Nueva Ecija Alternate Road Connecting Baguio-Nueva
Vizcaya-Quirino National Road and Pantabangan-Baler National Road to the
Department of Public Works and Highways
Reso No. 02-03 Endorsing the Proposed Farm-To-Market Road Projects in Itbayat, Batanes to
the Department of Agriculture to Proceed with its Validation and Evaluation
Process, and for Possible Funding Under FY 2023 Tier 2
22
2022 Cagayan Valley Regional Economic Situationer
23