THE Ilocos Region’s gross regional domestic product (GRDP) grew by 7.6 percent in 2022, ranking eighth among the 17 regions of the country, the Economic Development Group (EDG) said during the third leg of the Philippine Economic Briefing (PEB) Domestic Roadshow.

The EDG also shared that the employment rate in Ilocos Norte was recorded at 98.9 percent in 2022, resulting in the province registering a single-digit poverty incidence in 2021.

For the third leg of the PEB Domestic Roadshow, the Economic Team and other members of the EDG highlighted the priority sectors, specifically energy security and human capital development, which also serve as primary drivers of the region’s economic growth.

Lawyer Cherrie Grace Bareng-Asistin of the Philippine Chamber of Commerce and Industry-Ilocos Norte noted the gains are a testament to the hardworking characteristic of the Ilocanos.

Single-digit poverty incidence, high employment

Meanwhile, National Economic and Development Authority Undersecretary Carlos Bernardo Abad Santos shared that Ilocos Norte has the lowest poverty incidence in the Ilocos Region at 2.5 percent in 2021.

Santos said he is confident that the region can achieve a 7.3 percent poverty rate, and 7.0 to 7.5 percent GRDP over the medium term, adding these will be achieved through six key strategies under the Ilocos Regional Development Plan, which includes promoting human capital and social development, as well as increasing income-earning ability, among others.

“I think the region can do even better because in 2018, it has already achieved a poverty rate of 9.9 percent,” Santos stated.

To support investments in human capital development and increase the employability of Filipinos, especially in the regions, Department of Budget and Management (DBM) Secretary Amenah Pangandaman highlighted that the social services sector will continue to receive the highest allocation in the proposed fiscal year (FY) 2024 national budget.

“Investments in human capital development cornered almost 38 percent of our proposed FY 2024 national budget. That’s P2.18 trillion, of which P983.1 billion is dedicated solely for education, culture and manpower development, since we want to have a very productive manpower and labor sector,” Pangandaman said.

Renewable energy capital of Southeast Asia

Department of Finance Secretary Benjamin Diokno said that Ilocos Norte must strengthen its role as the Renewable Energy Capital of Southeast Asia.

In his keynote message, the Finance chief cited that the Ilocos Region, particularly Ilocos Norte, is an emerging partner of the government in ensuring energy security, given its vast renewable energy potential and massive reserves of mineral resources for clean energy technologies.

“Ilocos Norte is emerging to be a promising player in the clean energy arena, being home to the first and largest wind farms in the country,” the Finance chief said.

During a panel discussion on “A Fast-Growing and Forward-Looking Economy,” Diokno highlighted that the FY 2024 National Expenditure Program will continue to provide budgetary support for programs and projects that promote renewable energy development, energy efficiency and conservation, as well as alternative fuels and technologies.

Pangandaman said the DBM is also monitoring the scope and distribution of the country’s climate action through the Climate Change Expenditure Tagging.

“We tried to climate tag our budget, in which as much as 9.4 percent is consistent with our priorities under National Climate Change Action Plan 2011-2028. This amounts to P543.45 billion, which is higher by 17 percent compared to 2023.”

Meanwhile, the Department of Energy (DoE) is also implementing reforms to help the country achieve a 35 percent share of renewable energy in the power mix by 2030 and 40 percent share by 2040.

“We have decided to come up with Renewable Portfolio Standards. This is for the distribution utilities and electric cooperatives to make sure that every year, they will be increasing their renewable energy in their energy mix by 2.52 percent starting this September,” said DoE Undersecretary Cristina Guevara.

From July 2022 to June 2023, the DoE has awarded 126 renewable energy contracts, 72 of which are for solar projects, 30 for wind, 20 for hydro, two for biomass, one for ocean, and one for geothermal.

Financial inclusivity

Meanwhile, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. announced the BSP’s initiatives and measures to enhance banks’ practices, taking into account environmental risks and social considerations, particularly concerning loan portfolio and investment activities on green and sustainable projects.