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The
Economy of Davao City |
Like the rest of the country, Davao City
operates on an economic system that is
market-oriented, although pricing mechanisms
remain regulated in a few sectors (particularly
on basic commodities) to protect consumers.
 The competitiveness of the market has been
enhanced through the dismantling of protection
for "infant industries" and the breakdown of
industries with monopolistic or cartel
tendencies.
On the international front, the
economy has been opened up to global
competition, through a tariff reduction program
and the loosening of restrictions on inward
foreign investment.
The result is a diverse economy, featuring a
sound mix between the agricultural (roughly
45%), industrial (15%) and service (at around
35%) industries.
Poverty reduction has become the main goal of
the local government which is being addressed
through programs and projects one of which is
the encouragement of inward investments to
industries that are labor-intensive.
Fortunately for Davao, private investments has
Davao City’s economy is steadily growing in the
last two decades. The City has shifted counting
investments from millions in the 80s to billions
in the 90s and up to the present millennium.
Among Asian cities, Davao has maintained its
competitive position in attracting investments
and in penetrating new foreign markets owing to
its resilient exports base, peaceful business
climate, better quality of life, and rich pool
of skilled workforce.
With over 1.2-Million people as primary market
base, the city is conducive to business as
evidenced by the presence of the country’s top
200 companies.
Inflow of investments has been remarkable in the
last ten years. Export in the City is now
billion dollar industry with a growing niche
market for its products.
 The stable banana and flourishing pineapple
industries 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 3 banana
exporter.
Primarily an agricultural area, almost all kinds
of fruits thrive in Davao including the exotic
Durian. Other major agriculture-based exports
are pomelo, mango, coconut, papaya, mangoosten,
and even flowers.
The productive linkages between established
businesses and Davao City community reinforced
the competitive quality of life in a city that
has consistently maintained single digit
inflation rate since 1993.
Along with flourishing investments and exports,
the low inflation rate serve as concrete
illustration of the remarkable gains from Davao
City’s sustained competitiveness nurtured by
high level of responsiveness of the local
government which put priority focus in
facilitating business-friendly initiatives and
in ensuring a peaceful and prosperous
environment.
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