CAGAYAN VALLEY ECONOMY GROWS P447-B IN 2023

May 4, 2024 Provincial

Ilagan City boosts investment opportunities

ILAGAN CITY, Isabela

The economic growth in Cagayan Valley (Region 2) in 2023 marks a significant development, with expanding key sectors and diverse industries thriving and economic landscape from the bustling cityscape to the fertile agricultural lands, it offers a lot of opportunities for investment and innovation. Philippine Statistics Authority (PSA) said Region
2 posted a growth rate of 6.2 percent from P421.05 billion in 2022 to P447.07 billion in 2023. And the region is the 7th fastest-growing economy among the 17 regions in the country.

The region’s Gross Regional Domestic Product (GRDP) – goods and services produced in 2023 reached P26.03 billion. Among the thriving economic centers within Cagayan Valley is Ilagan City, Isabela, renowned as the corn
capital of the Philippines. Ilagan being close to most provinces in Region 2 and Eastern Cordillera Region is
beneficial for local marketing. Having airports in Tuguegarao and Cauayan cities make it easier to reach different
places and services with its accessibility and proximity to various provinces, positions it as a prime destination for
industry growth in the country.

Positioned as the provincial capital, Ilagan is swiftly emerging as a focal point for economic growth and investment, bolstered by its robust tourism sector and key attractions like Ilagan Sanctuary, Bonifacio Park, and the renowned Ilagan Japanese Tunnel. With the establishment of the I-Corn Complex, Ilagan aims to fortify its agricultural sector,
particularly in corn production, while adopting climate-resilient farming practices. Equipped with modern facilities, the complex not only enhances productivity and generates employment but also solidifies Isabela’s stature as a
leading corn processing hub.

In terms of major industries, the PSA, said services contributed the largest share to the region’s economy at 44.7%, followed by Industry and Agriculture, Forestry, and Fishing (AFF) at 28.5% and 26.8%, respectively. Despite
contributing only 0.1 percentage point to the country’s 5.5% economic growth, Cagayan Valley accounted for a 2.1% share of the total Gross Domestic Product (GDP). This surge, as per data from the Philippine Statistics Authority (PSA), saw the construction sector leading the surge with a remarkable 14.5% expansion. Accommodation and food
service activities closely followed with a 19.0% increase, underlining the region’s diverse growth across multiple sectors.

Tsidkenu Denise F. Ignacio / UBIntern