GCE exhibited a better performance, from negative 3.7 percent in 2002 to positive 0.5 percent in 2003. The almost nil growth in GCE was due to the tight spending policy of the government to contain the budget deficit to its programmed level. Ten of the seventeen regions reported negative growths in GCE including the two newly created regions CALABARZON (Region IV-A) with negative 3.6 percent and MIMAROPA (Region IV-B) negative 2.7 percent.

The following regions registered declines in GCE: CAR, Central Luzon, Central Visayas, Zamboanga Peninsula, Northern Mindanao, Davao Region, SOCCSKSARGEN and CARAGA. ARMM posted the highest growth of 6.2 percent in 2003. The other regions that also showed improvements in GCE, NCR 0.7 percent, Ilocos 1.9 percent, Cagayan Valley 5.1 percent, Bicol 1.3 percent, Western Visayas 2.8 percent and Eastern Visayas 5.4 percent.