Overall Performance

Expenditures on the gross regional domestic product, which is the sum of all final use of goods and services in the regional economies amounted to P 1,276.4 billion in 2006, 5.4 percent higher than its year-ago level of P 1,210.5 billion (Table 6.1B and Table 6.3B).

The Mindanao group accelerated with a 5.2 percent growth in 2006, from 4.2 percent the previous year. Likewise, the rest of the Luzon excluding the National Capital Region (NCR) exhibited an accelerated growth of 4.5 percent from 2.8 percent in 2005. The Visayas group, however decelerated to 4.9 percent from the 5.1 percent growth in 2005. The NCR also slowed down from 7.4 percent in 2005 to 6.8 percent in 2006 (Figure 1).

The rest of Luzon, excluding NCR, continues to get the lion’s share of the country’s expenditures with 33.4 percent, slightly lower than its last year’s share of 33.7 percent; followed by Mindanao with 17.7 percent, and Visayas with a 16.5 percent share (Figure 2).

The biggest contributor to the increase in the 2006 total domestic expenditures was NCR, with 2.2 percentage points followed by other Luzon, with 1.5 percentage points. The Visayas and Mindanao island groups shared 0.8 and 0.9 percentage point, respectively (Figure 3).

Expenditures of Cagayan Valley (Region II), which accounted for 2.0 percent of total expenditures rebounded to 7.2 percent in 2006 from previous year’s negative 4.3 percent, while SOCCSKSARGEN (Region XII) accelerated to 6.7 percent from 2.3 percent. The spending of three other regions, Cordillera Administrative Region (CAR), Northern Mindanao (Region X), and Ilocos Region (Region I) also accelerated from 0.7, 4.4, and 5.2 percent to 3.5, 6.8, and 6.2 percent, respectively (Figure 4).

The rest of the regions experienced decelerated growth with Zamboanga Peninsula (Region IX) posting the highest decline from a 6.9 percent growth in 2005 to 2.1 percent.

NCR continues to top the regional share to total expenditures with 32.5 percent of total expenditures, contributing P 414.3 billion. CALABARZON (Region IVA) trails NCR with 12.3 percent, followed by Central Luzon (Region III) with 8.4 percent, Western Visayas (Region VI), 7.2 percent and Central Visayas (Region VII), 7.1 percent (Figure 5). Meanwhile, Muslim Mindanao (ARMM), CARAGA (Region XIII), and Cagayan Valley (Region II) contributed the least to total expenditures with 0.9 percent, 1.3 percent and 2.0 percent share respectively (Table 6.2 B).