Election spending to boost Davao economy in '07- Neda

The economy in Davao Region improved in 2006, boosted by better farm production, and a healthier tourism industry, the government said Wednesday. In a statement released to the media, the National Economic and Development Authority also said it expects growth to continue in 2007, powered particularly by election related spending. "In (Neda's) Development Outlook report for 2007, Davao region sees the coming elections as one of the drivers that will boost its economy. The report said it would increase public spending and would thus bring a multiplier effect thereby increasing domestic consumption in the third and fourth quarter of 2007," the agency said in the statement. The Neda study also cheered the region's tourism industry. The report stated that the number of hotel occupants in 2006 increased 12.8 percent from the level reported in 2005. Domestic tourism accounted for the most number of arrivals, with a 92-percent share. The report said the tourism industry will continue to be rosy in 2007, especially because of an anticipated influx of Korean tourists. Neda also reported positive results in the region's agriculture sector. Output of bananas, the region's top export product, grew 10.5 percent last year, even as it accounted for 80 percent of the region's total exports. Even for only the first semester of 2006, banana exports had already reached $383 million. Japan, China and Korea were the top three export destinations for bananas. Sugracane production rose 70 percent in 2006, while pineapple output, also benefiting from high overseas demand, grew 43 percent last year. However, the Neda said export earnings may suffer this year due to the peso's continuing strength. The strong peso, the report said, makes the region’s export products such as banana, coconut and pineapple expensive to foreign markets.-GMANews.TV