NSCB - 2006 Gross Regional Domestic Product (GRDP)

HIGHLIGHTS

The country’s economy improved its performance in 2006 with an accelerated growth of 5.4 percent in the gross domestic product (GDP), from 4.9 percent in 2005 despite the occurrence of super typhoons that devastated the agriculture sector. All the major industries contributed to the growth.

AFF expanded moderately from 2.0 percent growth in 2005 to 3.8 percent in 2006. The industry sector also inched up to 4.5 percent, from 3.8 percent in 2005. The services sector slightly decelerated from a 6.8 percent growth in 2005 to 6.7 percent growth in 2006. Strong performances were registered by finance, private services, transportation, communication and storage (TCS), and trade subsectors.

Chart Cagayan Valley rebounded from having the lowest growth of negative 4.3 percent in gross regional domestic product (GRDP) in 2005, to a robust 7.2 percent growth in 2006, topping the other regions in the country. Other fast growing regional economies were National Capital Region (NCR) and Northern Mindanao both with a 6.8 percent growth, SOCCSKSARGEN with 6.7 percent and Ilocos Region with 6.2 percent growth.

The three regions that registered the lowest growths were Zamboanga Peninsula with 2.1 percent, MIMAROPA with 2.3 percent and Bicol Region with 2.6 percent.

From 2005 to 2006, 10 of the 17 regions posted accelerated growths as follows: Cordillera Administrative Region (0.7 percent to 3.5 percent), Ilocos (5.2 percent to 6.2 percent), Central Luzon (2.7 percent to 4.8 percent), CALABARZON (2.6 percent to 4.6 percent), Eastern Visayas (3.1 percent to 4.9 percent), Northern Mindanao (4.4 percent to 6.8 percent), Davao Region (4.1 percent to 4.4 percent), SOCCSKSARGEN (2.3 percent to 6.7 percent), ARMM (3.7 percent to 4.1 percent) and Caraga (3.9 percent to 4.9 percent) while Cagayan Valley rebounded from a negative 4.3 percent growth in 2005 to a robust 7.2 percent growth in 2006. On the other hand, among the 5 regions with decelerated growths, Zamboanga Peninsula experienced the biggest deceleration from 6.9 percent in 2005 to 2.1 percent in 2006. Other regions that decelerated are the NCR from 7.4 percent to 6.8 percent; MIMAROPA from 6.4 percent to 2.3 percent; Bicol from 5.0 percent to 2.6 percent; and, Central Visayas from 6.0 percent to 5.0 percent. Meanwhile, Western Visayas maintained its growth of 4.9 percent.

The five largest regional economies in 2005 maintained their relative share in 2006. NCR continued to account for the bulk of the country’s economy with a 32.5 percent share of the total GDP, followed by CALABARZON with 12.3 percent; Central Luzon, 8.4 percent; Western Visayas, 7.2 percent; and Central Visayas, 7.1 percent.

NCR, the second fastest growing economy in 2006, contributed 2.2 percentage points to the growth of the GDP. This was followed by CALABARZON with 0.6 percentage point, Central Luzon, Western Visayas and Central Visayas, each with 0.4 percentage point contribution and Northern Mindanao putting in 0.3 percentage point.

Economic Performance by Island Group

The Luzon Island group, with six regions excluding the NCR, contributed one-third or 33.4 percent to the country’s GDP in 2006. This was slightly lower than its 33.7 percent share in 2005. Moreover, the Visayas Island group, comprising of three regions, maintained its share of 16.5 percent from 2005 to 2006. Likewise, the Mindanao Island group, with six regions, maintained its relative share of 17.7 for both years.

From 2003 to 2006, the percentage share of the Luzon Island Group showed a declining trend from 35.1 percent in 2003, 34.4 percent in 2004, 33.7 percent in 2005 to 33.4 percent in 2006. The contribution of the Mindanao Island Group to total GDP decreased to 17.7 percent in 2005 and 2006 from 17.8 percent in 2004 and 17.9 percent in 2003. Meanwhile, the percentage share of the Visayas Island group increased from 16.4 percent in 2003 to 16.5 percent for 2004 to 2006.

Chart

NCR shared 2.2 percentage points to national growth of the GDP while the Luzon Island group (excluding NCR) contributed 1.5 percentage points. The Visayas Island group, on the other hand, added 0.8 percentage point and Mindanao Island group put in 0.9 percentage point.

Economic Performance by Industry

Agriculture, Fishery and Forestry

The AFF, which comprised 18.8 percent of the GDP, grew by 3.8 percent in 2006 from 2.0 percent in 2005.

Out of the 17 regions in the country, 13 experienced positive growths with MIMAROPA posting the fastest growth at 9.1 percent. The other leading regions included Cagayan Valley with 8.1 percent, Ilocos Region with 7.3 percent, SOCCSKSARGEN with 6.5 percent and Northern Mindanao with 5.4 percent.

The NCR, which exhibited a negative 8.7 percent growth in 2005, further experienced a lower negative growth of 14.3 percent in 2006. Central Visayas, Zamboanga Peninsula and Caraga suffered declines with negative growths of 4.1 percent, 1.3 percent and 1.0 percent, respectively.

Industry

Industry sector, which accounted for 32.5 percent of the national economy, grew by 4.5 percent in 2006 from 3.8 percent in 2005. The manufacturing subsector, which comprised the bulk of the total industry’s output at 24.0 percent, slowed down from 5.3 percent in 2005 to 4.6 percent in 2006. Construction made a turnaround from a negative 5.9 percent growth in 2005 to a robust 7.3 percent growth in 2006. Electricity, gas and water likewise accelerated from 2.5 percent in 2005 to 6.4 percent in 2006. However, Mining and Quarrying, plunged from 9.3 percent in 2005 to negative 6.1 percent in 2006.

NCR, the biggest industrial center in the country, remained the highest contributor to the growth of the industry sector at 1.9 percentage points. CALABARZON, the second top industrial region, shared 0.6 percentage point to the said aggregate growth. Central Luzon, Central Visayas and Northern Mindanao had contributions of 0.3 percentage point each.

Services

The services sector, which accounted for the biggest share of the national economy at 48.7 percent, slightly slowed down from 6.8 percent in 2005 to 6.7 percent in 2006. Three subsectors recorded slower growths from their previous year’s performance; finance decelerated from its remarkable growth of 13.6 percent in 2005 to 11.4 percent in 2006; TCS dropped from 7.3 percent to 6.3 percent; and private services from 7.5 percent to 6.9 percent. On the other hand, three other subsectors recorded accelerated growths; trade inched up from 5.6 percent in 2005 to 6.1 percent in 2006, ODRE from 5.3 percent to 5.7 percent and government services from 3.0 percent to 4.7 percent.

Implicit Price Index and Inflation

A comparative analysis of the implicit price index (IPIN) showed that NCR recorded the highest IPIN at 541.82 followed by Eastern Visayas and Muslim Mindanao at 490.85 and 468.87 percent, respectively. The lowest IPIN was noted in MIMAROPA at 359.85. This implies that the prices of goods and services produced in NCR in 2006 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 2006.

Meanwhile, Caraga exhibited the highest year-on-year increase in average prices of goods and services produced in 2006 with 9.9 percent inflation. The other regions with high inflation rates were the following: Zamboanga Peninsula, with 9.3 percent; Cordillera, with 7.2 percent; and Western Visayas with 6.5 percent.

Per capita GRDP

Cagayan Valley registered the biggest improvement in per capita GRDP in 2006, as it increased by 5.4 percent followed by NCR at 5.3 percent. NCR posted the highest per capita index relative to the national average with 257.9, followed by CAR with 123.8 and Northern Mindanao with 106.5. All other regions posted indexes lower than the national average with ARMM registering the lowest at 23.8.

Full text and tables of the highlights of the 2004-2006 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