NSCB - 2005 Gross Regional Domestic Product (GRDP)

HIGHLIGHTS

The country’s economy proved its resiliency once again with the gross domestic product (GDP) growing at 5.0 percent in 2005, a deceleration from the 6.2 percent growth achieved in 2004. The moderately favorable growth of the industry sector cushioned the sluggish growth in agriculture, fishery and forestry (AFF) and the slowdown in the services sector in 2005.

AFF barely inched up with a 1.8 percent growth in 2005, down from the 5.3 percent growth posted in 2004. The services sector, meanwhile, slowed down from 7.6 percent growth in 2004 to 6.4 percent growth in 2005. The industry sector moderately increased from 4.7 percent in 2004 to 4.9 percent in 2005.

Chart Zamboanga Peninsula posted a strong 7.2 percent growth in gross regional domestic product (GRDP), topping all the other regions in 2005. Following closely behind was National Capital Region (NCR) with a 7.1 percent growth, MIMAROPA with 6.5 percent, Ilocos Region and Central Visayas Region, each with 6.0 percent growths.

The three regions that registered the lowest growths were Cagayan Valley with negative 5.4 percent, Cordillera Administrative Region (CAR) with 1.1 percent and the SOCSKSARGEN Region with 2.3 percent growth.

From 2004 to 2005, among the 17 regions of the country, Ilocos, Central Luzon, MIMAROPA, Zamboanga Peninsula and Caraga Region recorded accelerated growth while the rest of the12 regions posted decelerated growths.

The four largest regional economies in 2004 maintained their relative share in 2005. NCR continued to account for the bulk of the country’s economy with a 31.9 percent share of the national GDP, followed by CALABARZON with 12.5 percent; Central Luzon, 8.5 percent; and Western Visayas, 7.3 percent.

NCR, achieving the second highest growth among the regions, contributed 2.2 percentage points to the growth of the GDP. This was followed by CALABARZON, Western Visayas, and Central Visayas, each with 0.4 percentage point contribution, and Central Luzon putting in 0.3 percentage point.

Economic Performance by Island Group

Excluding the NCR, the six regions in the Luzon Island group, maintained the largest share, at 33.8 percent, to the country’s GDP in 2005. This was slightly lower than the 34.4 percent share in 2004. Meanwhile, the Visayas Island group, comprising of three regions, slightly increased their total share from 16.5 percent in 2004 to 16.6 percent in 2005. The Mindanao Island group, with six regions, had a slight decline in their relative share from 17.8 percent in 2004 to 17.7 percent in 2005.

From 2002 to 2005, the percentage share of NCR and Visayas Island group to total GDP consistently increased; that of the Luzon Island group and Mindanao Island group showed a declining trend. This implies an imbalance in development with persisting bias in favor of NCR and against Mindanao.

Economic Performance by Industry

Agriculture, Fishery and Forestry

The AFF, which comprised 19.1 percent of the GDP, posted a slower growth of 1.8 percent in 2005 from 5.3 percent in 2004.

Six of the 17 regions registered accelerated growths with Zamboanga Peninsula recording the fastest growth at 8.7 percent. The other leading regions included Ilocos Region with 7.9 percent, Bicol with 7.7 percent and Eastern Visayas with 4.9 percent. NCR, which exhibited a negative 14.1 percent growth in 2004, experienced a lower negative growth of 8.7 percent in 2005. On the other hand, Cagayan Valley, SOCCSKSARGEN, CALABARZON and Cordillera suffered declines with negative growths of 12.0 percent, 2.3 percent, 1.9 percent and 1.3 percent, respectively. The other regions recorded decelerated growths.

Industry

Industry sector, which accounted for the 33.0 percent of the country’s GDP, continued to grow from 4.7 percent in 2004 to 4.9 percent in 2005.

NCR, the biggest industrial center in the country, remained the highest contributor to the growth of the industry at 2.0 percent, almost half of the sector’s aggregate growth in 2005. CALABARZON, the second top industrial region, shared 0.5 percent to the said aggregate growth. MIMAROPA, Central and Western Visayas and Davao regions had shares of 0.4 percent each.

Services

The services sector, which accounted for the biggest share of the national economy at 47.9 percent, slowed down from 7.6 percent in 2004 to 6.4 percent in 2005.

All regions exhibited decelerated performance except for the three regions in Mindanao, namely, SOCCSKSARGEN, ARMM and CARAGA. NCR which contributed 43.1 percent of the sector’s output posted a slower growth of 7.8 percent in 2005 compared to the 9.3 percent recorded in 2004. CALABARZON, the second biggest contributor to the services sector registered a 5.4 percent growth in 2005, from 6.2 percent the previous year.

Implicit Price Index and Inflation

A comparative analysis of the implicit price index (IPIN) showed that NCR recorded the highest IPIN at 516.92 followed by Eastern Visayas and Muslim Mindanao at 467.52 and 441.65 percent, respectively. The lowest IPIN was noted in MIMAROPA at 340.85. This implies that the prices of goods and services produced in NCR in 2005 were more than five times the prices in 1985. Similarly, the prices of similar goods and services in MIMAROPA in 1985 more than tripled in 2005.

MIMAROPA exhibited the highest year-on-year increase in average prices of goods and services produced in 2005 with 8.2 percent inflation. The other regions with high inflation rates were: Central Luzon, with 7.5 percent; Cagayan Valley, with 7.2 percent; and Cordillera, with 7.2 percent, all of which are located in Luzon.

Per capita GRDP

NCR registered the biggest improvement in per capita GRDP in 2005, as it increased by 5.5 percent. NCR also posted the highest per capita index relative to the national average with 252.0, followed by CAR with 126.0 and Northern Mindanao with 104.5. All other regions posted indexes lower than the national average with ARMM registering the lowest at 24.2.

Full text and tables of the highlights of the 2003-2005 GRDP are available for sale at the National Statistical Information Center (NSIC) located at the Ground Floor, Midland Buendia Building, 403 Senator Gil Puyat Avenue, Makati City. For subscription and inquiries, please contact the NSIC at telephone numbered (632) 895-2767 or e-mail info@nscb.gov.ph