2007 Gross Regional Domestic Product (GRDP)
(Posted 28 July 2008)
Philippine economy stronger with a 7.2 percent GDP growth
The Philippine economy grew stronger at 7.2 percent in 2007 from 5.4 percent in 2006, backed by an environment of benign inflation, low interest rates, and a strong peso. All the major industries contributed to the growth of the gross domestic product (GDP).
The agriculture, fishery and forestry (AFF) sector registered a moderate expansion from 3.7 percent in 2006 to 4.9 percent in 2007. Industry rose faster at 7.1 percent in 2007 from 4.8 percent in 2006, while services grew at a healthy 8.1 percent in 2007 from 6.5 percent in the previous year. Robust performances were recorded in the mining and quarrying, construction, and finance subsectors.
Fourteen regions register higher growth
Fourteen out of the country’s 17 regions posted higher growths in 2007. MIMAROPA soared from a modest 1.6 percent increase in 2006, accelerating five times more to reach an impressive 9.4 percent growth in 2007, thus outpacing all the other regions. Other fast growing regional economies were Central Visayas with 8.7 percent, Caraga with 8.6 percent, Northern Mindanao with 7.9 percent, and the National Capital Region (NCR) with 7.8 percent.
The three regions that recorded the lowest growths in 2007 were Eastern Visayas with 3.2 percent, the Autonomous Region in Muslim Mindanao (ARMM) with 5.4 percent, and CALABARZON with 5.5 percent.MIMAROPA growth shoots up, outpaces all other regions
MIMAROPA, the fastest growing region in 2007, also recorded the biggest jump in growth. It was followed by Zamboanga Peninsula (from 2.1 percent in 2006 to 7.4 percent in 2007), Bicol Region (2.6 to 7.7 percent), Central Visayas (4.8 to 8.7 percent), and the Cordillera Administrative Region or CAR (3.6 to 7.2 percent). On the other hand, among the three regions with decelerated growths, Eastern Visayas experienced the biggest deceleration from 5.2 percent in 2006 to 3.2 percent in 2007. The other two regions registered minimal slowdowns - Ilocos Region, from a 6.1 percent growth in 2006 to 5.8 percent the following year, and Cagayan Valley, from 7.4 to 6.6 percent.Metro Manila remains as top contributor to the national economy
The perennial top five among the regional economies maintained their relative shares in 2006 and 2007. NCR continued to account for the bulk of the country’s economy with a 32.6 percent share in 2007, followed by CALABARZON with 12.1 percent, Central Luzon with 8.3 percent, and Western and Central Visayas, each with a 7.2 percent share.
As expected, the five largest regional economies also contributed the biggest shares to the growth of GDP. NCR continued to be the top contributor with 2.5 percentage points. It was followed by CALABARZON with 0.7 percentage point, Western and Central Visayas, each with a 0.6 percentage point share, and Central Luzon contributing 0.5 percentage point.
Economic Performance by Island GroupLuzon accounts for the largest GDP share
The Luzon island group, covering seven regions excluding NCR, continued to contribute nearly a third of the country’s GDP. However, its percentage share showed a slight decline from 33.7 percent in 2005 to 33.2 percent in 2007. The Visayas island group, consisting of three regions, maintained its 16.5 percent share from 2005 to 2007. The Mindanao island group, composed of six regions, likewise kept its share of 17.7 percent for the same period.
Following NCR’s 2.5 percentage-point contribution to the national growth in GDP, the Luzon island group (excluding NCR) accounted for an additional 2.1 percentage points. The Visayas island group, on the other hand, chipped in 1.2 percentage points, and the Mindanao island group put in the remaining 1.3 percentage points.
Economic Performance by Industry
Agriculture attains higher growth in 11 regions
The AFF grew at an accelerated rate of 4.9 percent in 2007 from 3.7 percent in 2006. Its share in the total GDP decreased slightly from 18.8 percent in 2006 to 18.3 percent the following year.
Eleven out of the 17 regions in the country turned in higher growths in 2007 compared to the previous year, with the Cordillera growing the fastest at 19.8 percent. The other fast growing regions included ARMM at 8.1 percent, SOCCSKSARGEN at 7.9 percent, and Zamboanga Peninsula recovering at 7.3 percent.
Central Visayas also turned around from a negative 5.3 percent growth in 2006 to 4.5 percent in 2007. Six regions suffered declines: Ilocos (7.3 to 4.5 percent), Cagayan Valley (8.5 to 5.9 percent), MIMAROPA (8.9 to 1.8 percent), Western Visayas (2.4 to 0.8 percent), Eastern Visayas (5.3 percent to 5.1 percent), and Davao (3.0 percent to 2.1 percent).
Central Luzon contributed 0.7 percentage point to the growth of AFF, the biggest among the regions. The next two largest contributors to the growth were SOCCSKSARGEN with a 0.6 percentage point share, and Northern Mindanao, CALABARZON, and Zambonga Peninsula, all with a 0.5 percentage point contribution.
CALABARZON, Central Luzon, and Western Visayas remained as the three biggest contributors to the GVA of AFF with 12.0, 11.1, and 9.7 percent, respectively.Mining and quarrying, construction boost industry growth in 12 regions
The industry sector expanded by 7.1 percent in 2007 from 4.8 percent in 2006, thereby contributing 2.3 percentage points to the 7.2 percent GDP growth and making up 32.6 percent of total GDP. Mining and quarrying recorded the highest growth among the industry subsectors, posting a huge turnaround from negative 6.1 percent in 2006 to 25.9 percent in 2007. The construction subsector also grew faster at an impressive 23.1 percent in 2007 from 9.6 percent in the year before. Electricity and water slightly improved to 6.7 percent from 6.4 percent. However, manufacturing, the largest among the 12 subsectors of the Philippine economy with a 23.2 percent share in total GDP, decelerated to 3.4 percent in 2007 from 4.6 percent in 2006.
NCR, the country’s biggest industrial center with a 33.9 percent share in the total industry GVA, remained as the major contributor to the industry’s growth, providing 1.9 percentage points to the 7.1 percent growth of the sector in 2007. Western Visayas registered the second biggest contribution to growth at 0.7 percentage point, followed by CALABARZON and MIMAROPA, each with 0.6 percentage point. Davao Region, the highest contributor from the Mindanao island group with 0.5 percentage point, was fourth rank, along with Central Visayas, both with a 0.5 percentage point contribution.
The industrial performance of Caraga and MIMAROPA continued to outpace those of all the other regions as their industry growth improved. Caraga decelerated but maintained a double-digit growth from 22.3 percent in 2006 to 20.5 percent in 2006, mainly attributed to the 176.2 percent increase in the mining and quarrying subsector in 2007. MIMAROPA, on the other hand, rebounded from negative 6.7 percent to positive 19.1 percent. Six other regions posted double-digit growth rates for industry, majority of which could be explained by the surge in the mining and quarrying subsector. For Cagayan Valley and the Zamboanga Peninsula, the increase in industry was accompanied by a corresponding expansion in the construction subsector.
Notably, all regions recorded double-digit growth rates in 2007 for the construction subsector, with Bicol outpacing all the rest at 68.1 percent.
Services heighten growth performance in 15 regions
The service sector, which accounted for the biggest share of the national economy at 49.1 percent, accelerated from 6.5 percent in 2006 to 8.1 percent in 2007. All of its subsectors heightened their performances: TCS from 6.3 percent in 2006 to 8.3 percent in 2007, trade from 6.1 to 8.2 percent, finance from 11.3 to 13.1 percent, ODRE from 5.7 to 5.9 percent, private services from 6.9 to 8.4 percent, and government services from 2.3 to 2.6 percent.
Fifteen of the 17 regions in the country showed accelerated growths, with Central Visayas posting the fastest growth at 10.2 percent. The other leading regions included NCR with 9.0 percent, Western Visayas with 8.6 percent, Northern Mindanao with 8.0 percent, and Central Luzon with 7.8 percent.
On the other hand, services in Davao Region and SOCCSKSARGEN decelerated from 6.4 percent in 2006 to 5.9 percent in 2007 and 5.1 to 4.6 percent, respectively.
Implicit Price Index and Inflation
Metro Manila records highest inflation
Among the 17 regions, NCR recorded the highest implicit price index (IPIN) in the last three years, while MIMAROPA recorded the least. For 2007, the IPIN of NCR stood at 554.8, while MIMAROPA posted 367.3. Relative to 1985 prices, therefore, the average prices of goods and services produced in NCR increased by 5.5 times in 2007, while in MIMAROPA, prices increased by only 3.7 times.
Year-on-year inflation, however, showed that Caraga recorded the highest increase in the average prices of goods and services for the last two years, with 9.1 percent and 15.6 percent in 2006 and 2007, respectively. Caraga’s high inflation in 2007 was due to the soaring prices of nickel, which largely comprise its mining sector.
Notably, the Cordillera Administrative Region (CAR) and Eastern Visayas (Region VIII) recorded negative inflation rates in 2007. CAR recorded a 1.6 percent deflation due to the decline in the average prices of goods and services in the agriculture and fisheries, manufacturing, and electricity and water subsectors. Similarly, the average prices of goods and services in the manufacturing and construction subsectors of Eastern Visayas declined, resulting in a 0.6 percent deflation in 2007.With respect to the major island groups, Mindanao recorded the highest IPIN at 501.9, surpassing Visayas, which used to have the highest IPIN in 2005 and 2006. On average, the prices of goods and services in the Mindanao inflated by 6.4 percent in 2007, while Luzon (excluding NCR) and the Visayas inflated only by 2.0 percent and 0.7 percent, respectively.
Per capita GRDP
MIMAROPA, Central Visayas, and Caraga top in GRDP and per capita GRDP growth
MIMAROPA, Central Visayas, and Caraga, the three fastest growing regions in 2007, also registered the best improvements in per capita GRDP in the same year, posting a uniform growth of 6.6 percent. NCR followed close at 6.3 percent. Western Visayas and Northern Mindanao showed equal gains in per capita GRDP at 5.7 percent. NCR continued to record the highest per capita index relative to the national average, with 260.9 in 2007. Cordillera was a far second at 123.9. Northern Mindanao, the largest regional economy in Mindanao, ranked third in terms of per capita GRDP index at 107.2.
Among the island groups, the Visayas registered the highest growth in per capita GRDP in 2007. Visayas’ per capita GRDP accelerated by 2.6 percentage points from 2.8 percent in 2006 to 5.4 percent in 2007. Among its regions, the per capita GRDP of Central Visayas went up from a 2.7 percent growth in 2006 to 6.6 percent in 2007. Similarly, Western Visayas increased to 5.7 percent in 2007 from 2.9 percent in the previous year. On the other hand, Eastern Visayas recorded a decelerated growth in its per capita GRDP in 2007 at 1.1 percent from 3.1 percent in 2006 due to its sluggish economic performance.
Mindanao’s per capita GRDP tailed Visayas as it recorded a 2.0 percentage point increase from 3.1 percent in 2006 to 5.1 percent in 2007. All the regions of Mindanao registered increases in per capita GRDP, with Caraga turning in the best performance as its per capita GRDP increased by 2.6 percentage points, from 4.0 percent to 6.6 percent. Similarly, Zamboanga Peninsula accelerated by 5.2 percentage points as it recorded a 5.2 percent growth in 2007 from an almost zero growth in 2006. Davao’s per capita GRDP increased by 2.4 percentage points from 2.6 percent in 2006 to 5.0 percent in 2007. ARMM and Northern Mindanao also accelerated from 1.3 to 2.9 percent and from 4.7 to 5.7 percent, respectively. SOCCSKSARGEN posted the smallest acceleration among the Mindanao regions, from 4.2 to 4.4 percent.
The growth in per capita GRDP in Luzon (excluding NCR) increased by 1.8 percentage points from 2.3 percent in 2006 to 4.1 percent in 2007. Among its seven regions, MIMAROPA recorded the highest per capita GRDP growth, from negative 1.1 percent in 2006 to 6.6 percent in 2007. Similarly, Bicol’s per capita GRDP accelerated from 0.7 percent in 2006 to 5.6 percent in 2007. Cordillera increased by 3.6 percentage points from 1.4 to 5.0 percent. Central Luzon and CALABARZON both recorded slight accelerations from 2.7 to 4.0 percent and from 2.2 to 3.1 percent, respectively. However, Ilocos and Cagayan Valley registered decelerated per capita GRDP growths for 2006 to 2007, from 4.0 to 3.7 percent and from 5.6 to 4.8 percent, respectively.
Full text and tables of the highlights of the 2005-2007 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 firstname.lastname@example.org