HIGHLIGHTS

Amidst concerns over the much-talked about fiscal crisis, effects of rising oil prices and devastation caused by a few of the strongest typhoons in the last quarter of 2004, the country’s economy showed resilience with the gross domestic product (GDP) accelerating to 6.1 percent from 4.7 percent in 2003.

All of the three major sectors of the economy registered faster growths than a year ago with agriculture, fishery and forestry (AFF) growing by 5.1 percent from 3.5 percent in 2003, industry by 5.2 percent from 3.6 percent, and services by 7.1 from 5.8 percent.

The services sector, which accounted for 47.6 percent of the total economy, contributed 3.3 percentage points to GDP growth as all its subsectors posted accelerated growths, with transportation, communication and storage (TCS) leading the way with 11.2 percent growth.

The industry sector, which had a 33.6 percent share of the total economy, put in 1.8 percentage points to total growth. Construction rebounded from its 4.0 percent slump in 2003 as it posted a 7.4 percent growth in 2004. Mining and quarrying, on the other hand, slowed down to 2.6 percent from a high 16.8 percent growth in the previous year.

AFF, which accounted for 18.2 percent of the economy, contributed 1.0 percentage point to national growth.

Cagayan Valley posted a robust 10.7 percent growth in gross regional domestic product (GRDP) outpacing all other regions in 2004. It was followed by Western Visayas with 7.9 percent; National Capital Region with 7.6 percent; Central Visayas, 7.2 percent; and Eastern Visayas and Davao Region, both growing at 6.9 percent. The three regions that registered the lowest growths were Central Luzon with 2.1 percent; CALABARZON, 3.3 percent; and the Cordillera Administrative Region (CAR), with 4.1 percent. Except for Central Luzon and MIMAROPA, which both experienced economic slowdown, all regions recorded accelerated growths.

The National Capital Region (NCR) continued to account for the bulk of the country’s economy with a 31.3 percent share of the national GDP. This was followed by CALABARZON with 12.6 percent; Central Luzon, 8.6 percent; Western Visayas, 7.6 percent; and Central Visayas, 7.1 percent.

NCR, the largest regional economy, spearheaded the country’s economic expansion in 2004, contributing 2.4 percentage points to the growth of the GDP. This was followed by Western Visayas which put in 0.6 percentage point; Central Visayas, 0.5 percentage point; CALABARZON, 0.4 percentage point; and Northern Mindanao and Davao Region, each with 0.3 percentage point contribution.