Overall Performance

Expenditures on the Gross Regional Domestic Product, which is the sum of all final uses of goods and services in Philippine regional economies, amounted to P 1,368.6 billion in 2007, 7.2 percent higher than the year-ago level of P 1,276.9 billion. (Table 6.1B and Table 6.3B)

Growth in domestic expenditures for all major island groups paced up during the year. By island group, expenditures of Mindanao group grew by 7.2 percent from 5.2 percent the previous year. Other Luzon group, excluding the National Capital Region (NCR), exhibited a similar pattern, growing at 6.4 percent from 4.5 percent in 2006.  Likewise, expenditures of the National Capital Region (NCR) rose from 6.7 percent to 7.8 percent. (Figure 1)

Other Luzon, excluding NCR, accounted for the highest share of the total expenditures at 33.2 percent followed by NCR at 32.6 percent.  Mindanao shared 17.7 percent while Visayas contributed 16.5 percent. (Figure 2).

The major contributor to the increase in the 2007 total domestic expenditure was NCR, putting in 2.5 percentage points; followed by Other Luzon contributing 2.1 percentage points.  The Mindanao and Visayas island groups provided 1.3 and 1.2 percentage points, respectively (Figure 3).

Accelerated spending in fourteen regions

Fourteen out of the seventeen regions recorded accelerated growths in expenditures in 2007. The highest growth rates were recorded in MIMAROPA (Region IVB), Caraga (Region XIII), and Central Visayas (Region VII). Only three regions showed deceleration in expenditures. These were Eastern Visayas (Region VIII) at 3.2 percent in 2007 from 5.2 percent in 2006; Cagayan Valley (Region II) from 7.4 percent to 6.6 percent; and Ilocos Region (Region I), from 6.1 percent to 5.8 percent. (Figure 4).

MIMAROPA posts fastest growth in expenditure

MIMAROPA (Region IVB), which accounted for 2.7 percent of the total expenditures of all regions, recorded the highest expenditure growth of 9.4 percent this year, an acceleration from previous year’s growth of 1.6 percent.  Central Visayas (Region VII) was the second fastest growing spender from 4.8 percent expansion last year to 8.7 percent this year. Caraga came in third increasing by 8.6 percent from a 6.0 percent growth the previous year. (Figure 4).

NCR bests other regions in share to total expenditures

NCR outdid other regions in terms of share to total expenditures at 32.6 percent, valued at P 446.8 billion from P 414.3 billion. Other regions’ share to total expenditures were as follows: CALABARZON (Region IVA), 12.1 percent; Central Luzon (Region III), 8.3 percent; Western Visayas (Region VI) and Central Visayas (Region VII), with 7.2 percent each. (Figure 5)  On the other hand, 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 shares, respectively.