THE DEPARTMENT of Economy, Planning and Development (DEPDev) XI noted that the flood control scandal in 2025 affected the construction industry of Davao Region.
While the Philippine Statistics Authority (PSA) XI recorded a positive growth rate of the construction industry in 2024, it dramatically nosedived last year.
During the 2025 Economic Performance of Davao Region news conference last April 23, PSA XI reported that the construction industry grew from P124 billion in 2024 to P127 billion in 2025.
However, DEPDev noted that the industry itself nosedived from 15.5% in 2023-2024 to only 2.7% from 2024 to 2025.
“May suspension ng construction industry from the government side. That’s why our construction industry slowed down severely by 6%,” Priscilla Sonido, DEPDev XI regional director, said.
The flood control scandal broke out in the third quarter last year, where some processes of DPWH were reviewed to ensure infrastructure projects are within standard.
Baby Jean Alid, PSA XI OIC regional director, said public spending comprises 30% of the total construction volume, on top of the private and household construction.
“In total, nag-increase tayo, but on the government construction nag-decrease po siya,” Alid said, noting the value of the industry increased, but the growth rate decreased.
“Lumalaban ang private at household natin na construction kaya nag-increase pa rin tayo ng kunti, but malaki ang effect ng ating government construction,” she added.
Sonido said the domestic governance issues have “undeniably” dampened economic performance across regions.
The official called for stringent anti-corruption safeguards for transparent, high-quality project delivery to sustain the economic gains of the region.
“We must make 2026 a rallying point to accelerate critical reforms and revitalize our development strategies,” she stressed.
