NSCB - 2003 Gross Regional Domestic Product (GRDP)

2003 Gross Regional Domestic Product (GRDP)
2003 Gross Regional Domestic Product (GRDP)
Estimates Based on the New Regional Configuration

(Posted 12 July 2004)

HIGHLIGHTS

Despite the SARS scare and threat of Iraq war, the Philippine economy sustained its resiliency as the Gross Regional Domestic Product (GRDP) grew by 4.7 percent in 2003 from 4.3 percent in 2002. The Service sector, which accounted for 46.7 percent of the total economy, recorded an accelerated growth of 5.8 percent in 2003 from a 5.1 percent increase in 2002. Also performing favorably is the Industry sector, whose growth inched up to 3.8 percent from a 3.6 percent in 2002 and had a 33.5 percent share to the total GDP. Meanwhile, the aggregate Agriculture, Fishery and Forestry (AFF), which comprised 19.9 percent of the economy, sustained its 3.8 percent growth in 2002.

This report on the GRDP of the Philippines is based on the new configuration of the regions as mandated under Executive Orders Numbered 36 and 103.

For 2003, the highest growth of 11.0 percent was recorded for MIMAROPA. This was followed by Western Visayas (5.4 percent), Northern Mindanao (5.6 percent), Bicol Region (5.4 percent) and the National Capital Region (NCR) (5.3 percent). On the other hand, the bottom three in terms of growth, were CARAGA (0.9 percent), Cagayan Valley (1.3 percent) and the Autonomous Region in Muslim Mindanao (ARMM) (2.6 percent).

Of the nine (9) regions that maintained its existing configuration, four posted accelerated growths outpacing their 2002 performance. These included Western Visayas (5.9 percent), the National Capital Region (NCR) (5.3 percent), Eastern Visayas (5.2 percent), and Central Visayas (4.6 percent). Meanwhile, Cagayan Valley recorded a turn-around from a negative 1.2 percent growth in 2002 to a positive 1.3 percent growth in 2003. Conversely, Bicol Region, Ilocos Region and the Cordillera Administrative Region (CAR) posted decelerated growths of 5.4percent, 3.5percent and 3.0percent, respectively.

Executive Orders Numbered 36 and 103, split Region IV into IV-A (CALABARZON) and IV-B (MIMAROPA); reclassified Aurora province under Region III from Region IV and reconfigured the Mindanao regions except for CARAGA.

Based on the new configuration, Central Luzon posted a 3.6 percent growth. CALABARZON, 3.8 percent, MIMAROPA, 11.0 percent, Zamboanga Peninsula, 4.5 percent, Northern Mindanao, 5.6 percent, Davao Region, 4.2 percent, SOCCSKSARGEN Region, 3.8 percent and ARMM, 2.6 percent.

NCR continued to occupy the bulk of the country’s economy as it had a 30.5 percent share to the total. This was followed by CALABARZON with 13.0 percent, Central Luzon with 9.0 percent, Western Visayas with 7.2 percent and Central Visayas 7.0 percent).

The regions which posted the biggest contribution to GDP growth were NCR (1.6 percentage points), CALABARZON (0.5 percentage point), Western Visayas (0.4 percentage point), and Central Luzon, Central Visayas, MIMAROPA, and Northern Mindanao with 0.3 percentage point each.

NCR, which accounted for the biggest share in the GDP growth, recorded output gains in both Industry and Service Sectors. The turn-around in Construction in NCR from negative 32.5 percent to 7.8 percent and the accelerated performance in Manufacturing boosted the performance of the Industry sector. The substantial gains in Trade, Finance, ODRE and Government Services were able to offset the deceleration in the outputs of the other subsectors such as electricity and water, transport communication and storage and private services.

Cagayan Valley bounced back from a negative growth of 1.2 percent in 2002 to a positive 1.3 percent gain in 2003. This was brought about by the improved performance of the Services Sector (from 5.8 percent to 5.9 percent) specifically, the higher increases of Finance and Ownership of Dwellings and Real Estate coupled with the recovery of the Agriculture and Fishery subsector from a contraction of 2.5 percent in 2002 to a 0.4 percent growth in 2003. AFF accounted for 50.7 percent of the total regional output.

Western Visayas further expanded in 2003 as it posted an accelerated growth of 5.9 percent from a 4.4 percent in 2002. The increase was driven by the improved performance in all major sectors with AFF exhibiting the biggest improvement from 0.5 percent increase to 3.4 percent in 2003; Industry, 6.4 percent from 4.1 percent; and Services, 7.3 percent from 7.1percent.

The Eastern Visayas economy managed to sustain its momentum as it outpaced its 2002 performance. The favorable performance was largely attributed to the remarkable gains in the Industry, which posted a turn around performance from a negative 4.2 percent to a positive 2.0 percent largely on account of the 6.9 percent increase in manufacturing and the accelerated growth of electricity and water. The Industry sector accounted for 30.2 percent of the total regional economy.

In terms of per capita GRDP, MIMAROPA posted the highest per capita growth rate in 2003 at 7.6 percent. Of the non-reconfigured regions, the following regions surpassed their 2002 GRDP per capita: NCR (0.9 percent to 3.0percent), Western Visayas (2.9 percent to 4.5 percent), Central Visayas (0.8 percent to 2.4 percent), and Eastern Visayas (1.0 percent to 3.5 percent) Meanwhile, Cagayan Valley improved from a negative 2.9 percent to a negative 0.5 percent growth.

NCR remained as the region with the highest per capita index at 235.7 outdoing the national index set at 100.00. This was followed by CAR with 137.9 index, Northern Mindanao with 104.9 and CALABARZON with 103.4. The rest of the regions have lower per capita indices than the national average.