Midterm polls crucial for Davao — RDC

DAVAO CITY — The incoming 2025 midterm elections will be crucial for the future of Davao Region and the entire country, Regional Development Council 11 (RDC 11) co-chairperson Arturo M. Milan said in an interview.

Mr. Milan said for 2025, Davao region is expected to be slightly better during the first half of the year simply because it is an election year, however, the second half will be a crucial one, depending on the outcome of the midterm elections.

“It can make or break the economy as a whole. We need to watch this closely. The main contributor to 2025 growth will be election spending. More money will be in circulation creating temporary disposable income for people to trigger consumer spending during the first half of the year,” he told BusinessWorld.

Mr. Milan added that people can expect the implementation of government infrastructure projects, under the Department of Public Works and Highways (DPWH) budget in 2025.

“This increase in DPWH budget in an election year is also creating a lot of political noise from the people. Let’s remain vigilant and pray hard that the conduct of the incoming elections will be clean, honest, and orderly so that the trust and confidence of the people in our political leaders will be restored, and that progress and development will continue to reign in our country and region,” he said.

Meanwhile, Mr. Milan observed that the economy of Davao Region in 2024 was unsatisfactory as prices of food continued to soar. He added there was no government infrastructure implemented apart from ongoing flagship projects from the previous administration.

He added that only a few new investments are coming in due to the current political situation. Unemployment is also on the rise, and tourist arrivals have been on the downtrend as fewer conferences and conventions are held in our region, particularly in Davao City.

Mr. Milan sees the Business Process Outsourcing (BPO) industry as the only bright spot for Davao Region’s economy this 2025 as companies continue to expand their operations.

Mr. Milan said Davao Region is expected to grow from 6.5% – 7% which is a low if not the lowest growth rate compared to the recent past.

He said it will still be the service sector, particularly the wholesale and retail, and BPO subsectors, will be the main drivers of growth with contributions from private constructions. — Maya M. Padillo