Davao City is the premier city & hub of Mindanao. It’s the greatest economic activity, population, urban build-up & modern amenities in Mindanao. It is the most important economy in the island & the third most important urban middle in the Philippines. It is also the largest city in the BIMP-EAGA Economic Circle. Current revenue statistics show Davao City to be the fifth-richest city in the Philippines in terms of local income & IRA – the only city outside greater Manila in the top.
Like the remainder of the country, Davao City operates on an economic process that is market-oriented, although pricing mechanisms stay regulated in a few sectors (on basic commodities) to protect consumers. The competitiveness of the market has been enhanced through the dismantling of protection for “infant industries” & the breakdown of industries with monopolistic or cartel tendencies.
On the international front, the economy has been opened to global competition, through a tariff, private investments has Davao City’s economy is steadily growing in the last decades. The City has shifted counting investments from millions in the ’80s to billions in the ’90s & pool of expert workforce. With close to one.5-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 outstanding in the last0 years. Exports in the City are now a billion dollar industry with a growing niche market for its products. The stable banana & 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 exporter of papaya, mangosteen, & even flowers. Recently, the annual income of Davao City of 2010 is kind of than four billion.
The productive linkages between established businesses & 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 & exports, the low inflation rate serve as concrete illustration of the outstanding 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 & in ensuring a calm & prosperous surroundings.
The city government is earmarking P4.11 billion for this year’s budget, about P80 million higher than last year’s, without introducing new taxes. In fact, Davao City is the 5th richest city in the Philippines after Makati (P10.1 billion), Quezon City (P9.4 billion), Manila (P7.3 billion), & Pasig (P5.3 billion), making Davao as the richest city in the country outside Metro Manila. Davao City also ranked 87th as the world’s quickest growing city by the City Mayors Foundation, which is based in London, United Kingdom & Freiburg, Germany. According to them, the city has a projected average annual growth of 2.53 percent in the work of the 15-year period, which made Davao as the only city in the Philippines to make it on the top 100.
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