Oxford economics report cites agri-food sector as key to economic recovery

In “The Economic Impact of the Agri-Food Sector in South East Asia commissioned by Food Industry Asia (FIA)”, Oxford cited the Philippines’ agri-food sector as a significant driver in its economic recovery, creating employment and putting food on the table at stable prices.

“The report showed the Philippine agri-food sector contributed a total of P6.1 trillion to the country’s gross domestic product (GDP) in 2019, a 16 percent increase from 2015. The sector was also responsible for 42.7 percent of the entire workforce with 18 million jobs, making it the single most critical source of employment in the economy. The agri-food industry also contributed a total of P829.5 billion in tax revenues.” (via Manila Times)

The report pointed to food and beverage manufacturing as a key driver for the agri-food sector in the Philippines which, in contrast to many other Southeast Asian economies, outweighs the size of agricultural production by 46 percent of the total agri-food sector’s GDP contribution.

The report also showed the sector saw a 4 percent contraction in 2020 or a P262.1 billion drop in GDP contribution. However, it noted that the scale of this impact was considerably smaller than what the economy endured as a whole.

In their Economic Recovery Matrix, the Philippines showed critical vulnerabilities due to its dependence on tourism to revive its food industry.

They highlighted that it should be the policymakers’ top priority to provide favorable conditions for the industry to help rebuild the economy effectively as supply and demand risks, fiscal measures and seemingly unending impacts of the Covid-19 pandemic could disrupt the recovery. To do this, they noted three conditions need to be met: using education to influence behavior, favoring regulatory standards over taxes, and maintaining discussion with the industry.

SOURCE: Manila Times