NSCB - 2008 Gross Regional Domestic Product (GRDP)

HIGHLIGHTS

Philippine economy grows by 3.8 percent

The Philippine economy managed to grow by 3.8 percent in 2008 amidst the early inroads made by the global financial meltdown, the onslaught of several typhoons that hit the country during the year and the peace and order problems in Mindanao. The 3.8 percent growth was a deceleration from the 7.1 percent achieved during the high growth period of 2007. Major contributors to growth were manufacturing, agriculture and fishery, TCS, and private services.

All of the major sectors decelerated in 2008 relative to 2007. Agriculture, fishery and forestry (AFF) slowed down from 4.8 percent in 2007 to 3.2 percent in 2008. Industry posted a deceleration from 6.8 percent in 2007 to 5.0 percent in 2008 while the service sector significantly slowed down from 8.1 percent to 3.3 percent.

Northern Mindanao’s economy records fastest growth

Northern Mindanao’s economy posted the fastest growth rate among the country’s 17 regions at 5.3 percent in 2008, albeit a slowdown from its 7.7 percent growth in 2007. This was followed by National Capital Region (NCR) with a 4.9 percent growth, SOCCSKSARGEN with 4.6 percent, Western Visayas with 4.4 percent, and Bicol with 4.3 percent.

Cordillera Administrative Region (CAR), on the other hand, registered the slowest growth at 1.8 percent in 2008, a deceleration from 7.1 percent in 2007. The Autonomous Region in Muslim Mindanao (ARMM) ranked second slowest as its growth rate slowed down from a growth of 5.4 percent in 2007 to 1.9 percent in 2008. Cagayan Valley and CALABARZON’s ranked third slowest at a growth rate of 2.0 percent in 2008.

Growth Rates of Regional Economies:
2006-07 and 2007-08, at Constant 1985 Prices

Chart

Only Eastern Visayas accelerates

Among the country’s 17 regions, only Eastern Visayas recorded an improvement in its economic growth – accelerating from 3.1 percent in 2007 to 3.6 percent in 2008. The rest of the regions experienced a slowdown in their economic performance.

MIMAROPA recorded the biggest drop in growth by 6.7 percentage points - from 9.8 percent in 2007 to 3.1 percent in 2008. Its 2008 performance is a complete reversal of its year-ago growth when it recorded the biggest jump of 8.2 percentage points. Other regions with bigger decelerations were CAR (5.3 percentage points from 7.1 to 1.8 percent), Central Visayas (5.2 percentage points from 8.6 to 3.4 percent), and Zamboanga Peninsula (5.0 percentage points from 7.2 to 2.2 percent).

Meanwhile, the growth rate of SOCSKSARGEN and Central Luzon each slid by 2.1 percentage points (from 6.7 percent growth to 4.6 percent and from 5.9 percent to 3.8 percent, respectively) and Northern Mindanao dropped by 2.4 percentage points from 7.7 percent in 2007 to 5.3 percent in 2008.

NCR continues to be top contributor to the national economy

NCR continued to account for the bulk of the national economy with a 33.0 percent share in 2008, an increase of 0.3 percentage point from 2007. It was followed by CALABARZON with 11.9 percent, Central Luzon with 8.3 percent, Western Visayas with 7.3 percent and Central Visayas with 7.1 percent. The five regions which remained to be the top contributors accounted for more than two-thirds of the national economy in 2008.

NCR is also the top contributor to the 3.8 percent growth of the country’s GDP in 2008. It contributed 1.6 percentage points followed by Central Luzon, Western Visayas and Northern Mindanao with 0.3 percentage point each. Central Visayas along with CALABARZON, Davao, and SOCCSKSARGEN contributed 0.2 percentage point apiece to the growth of the domestic economy. The top five regional economies contributed a total of 2.7 percentage points.

Economic Performance by Island Group

Among the island groups, Luzon contributes the largest share to the country’s GDP

The Luzon island group with seven regions excluding the NCR, contributed nearly a third (32.7 percent) of the country’s GDP in 2008 – the largest share among the island groups. However, its percentage share continuously declined from 2006 (33.3 percent) and 2007 (33.1 percent). The Visayas island group, consisting of three regions, sustained its 16.5 percent share between 2006 and 2008 while the Mindanao island group, composed of six regions, kept its share of 17.7 percent for the same period.

Percentage Share to Total GDP by Major Island Group:
2006 - 2008, at Constant 1985 Prices

Chart

In terms of contribution to growth of the country’s GDP, the Luzon island group accounted for 0.9 percentage point while the Mindanao island group added 0.7 percentage point and the Visayas island group chipped in the remaining 0.6 percentage point.

Contribution to GDP Growth by Major Island Group:
2006 - 2008, at Constant 1985 Prices

Chart

Economic Performance by Industry

Agriculture, fishery and forestry grows at slower rate

The AFF continued to grow but at a slower rate of 3.2 percent in 2008 – the slowest since 2005 - from 4.8 percent in 2007. Its share to the total GDP remained the lowest as it decreased slightly from 18.4 percent in 2007 to 18.3 percent in 2008. Its contribution to GDP growth declined from 0.9 percentage point to 0.6 percentage point in the same period - the lowest among the three major sectors.

Thirteen out of the 17 regions in the country posted decelerations in the growth of their respective AFF sectors including two regions which registered contractions. Meanwhile, three regions recorded accelerations in growth and one region sustained its 2007 performance in 2008.

CAR’s AFF performance suffered the biggest drop of 17.3 percentage points from 19.9 percent in 2007 to 2.5 percent in 2008 while Ilocos and Caraga recorded contractions of 1.0 and 0.5 percent, respectively. On the other hand, Northern Mindanao registered the highest acceleration at 4.4 percentage points from 6.3 percent in 2007 to 10.7 percent in 2008 while Western Visayas accelerated more than fivefold - from 0.8 percent in 2007 to 4.1 percent in 2008. Davao Region sustained its growth of 2.0 percent between 2007 and 2008.

Northern Mindanao posted the highest growth rate in the AFF sector, growing at 10.7 percent or 4.4 percentage points higher than its 6.3 percent growth in 2007. SOCCSKSARGEN posted the 2nd highest growth rate of 6.7 percent and Eastern Visayas with the 3rd highest at 4.9 percent.

Growth Rates of Regional Economies in the Agriculture, Fishery and Forestry Sector:
2006 – 2008, at Constant 1985 Prices

Chart

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.

Construction, electricity and water, and manufacturing drive
industrial growth

The industry sector is the only sector which increased its percent share to the country’s total GDP as it accounted for 32.8 percent share in 2008 from 32.4 percent in 2007. Its growth rate, although the highest among the three sectors in 2008 at 5.0 percent, decelerated from 6.8 percent in 2007. Its contribution to the country’s GDP growth declined from 4.0 percent in 2007 to 1.6 percent in 2008. Like the service sector, the industry sector contributed 1.6 percentage points to the country’s GDP growth in 2008.

Four out of the 17 regions in the country posted faster growth rates in 2008 with two regions rebounding from negative growths in 2007. The remaining regions recorded decelerated growths with one region posting a contraction.

ARMM recorded the highest acceleration as industry in the region rebounded from negative 2.4 percent in 2007 to 4.7 percent in 2008. Likewise, Eastern Visayas industrial growth turned around from negative 2.0 percent to 2.3 percent. NCR and Central Luzon also recorded accelerated growths of 7.3 and 5.1 percent, respectively, in 2008.

Growth Rates of Regional Economies in the Industry Sector:
2006 – 2008, at Constant 1985 Prices

Chart

Service sector remains largest contributor to country’s economic growth

The service sector continued to account for the largest share of the national economy contributing 49.0 percent in 2008, a slight decline of 0.2 percentage point from its contribution of 49.2 percent in 2007. The sector grew by 3.3 percent in 2008, a deceleration from its 8.1 percent growth in 2007. Along with the industry sector, the service sector likewise contributed 1.6 percentage points to the overall GDP growth in 2008.

All regions recorded decelerated growth rates in the service sector in 2008 with Central Visayas recording the biggest drop of 7.2 percentage points from 10.2 percent in 2007 to 3.0 percent in 2008.

Amidst deceleration, CAR recorded the highest growth as its services grew by 5.6 percent in 2008. MIMAROPA ranked second at 4.3 percent, followed by Bicol at 4.2 percent. Western Visayas posted the weakest performance as its service sector grew by only 2.2 percent.

Growth Rates of Regional Economies in the Service Sector:
2006 – 2008, at Constant 1985 Prices

Chart

Implicit Price Index and Inflation

MIMAROPA and Eastern Visayas record highest inflation

Year-on-year inflation showed that Eastern Visayas and MIMAROPA had the highest increase in the average prices of goods and services at 13.6 percent each in 2008. The high inflation of Eastern Visayas in 2008 was due to the soaring prices of food and other basic commodities. MIMAROPA experienced double-digit inflation in the average prices of goods and services in the agriculture and fishery subsector.

Implicit Price Index of the Regional Economies:
2006 – 2008, at Constant 1985 Prices

Among the 17 regions, NCR recorded the highest Implicit Price Index (IPIN) in the last three (3) years while MIMAROPA recorded the least. For 2008, the IPIN of NCR stood at 586.57 while MIMAROPA posted 419.00. Relative to 1985 prices, therefore, the average prices of goods and services produced in NCR increased by 5.9 times as of 2008 while in MIMAROPA, prices increased by only 4.2 times.

Among the major island groups (excluding NCR), Mindanao recorded the highest IPIN at 511.9, followed by Visayas at 501.0, and Luzon at 476.5. On the average, the prices of the goods and services in the Mindanao island group increased by 9.3 percent in 2008 while Luzon and Visayas island groups increased by 8.0 percent and 8.7 percent, respectively.

Per capita GRDP

NCR, CAR and Northern Mindanao sustain per capita GDP index
above national average

The growth rate of the country’s per capita GDP decelerated to 1.8 percent in 2008 from 5.0 percent in 2007, parallel to its decelerating economic performance. Among the regions, only Eastern Visayas recorded an accelerated per capita GDP growth rate of 1.5 percent in 2008 from 1.0 percent in the previous year. The rest of the regions posted decelerated per capita GRDP while ARMM, CAR, and CALABARZON posted contractions in their per capita GRDP by 0.4 percent, 0.3 percent, and 0.3 percent, respectively.

NCR posted the highest growth rate in per capita GRDP in 2008 at 3.4 percent amidst its deceleration from 6.3 percent the previous year. Northern Mindanao ranked second at 3.2 percent, followed by Western Visayas at 2.4 percent.

Per Capita GDP Index with Reference to the National Average:
2006 – 2008, at Constant 1985 Prices

Chart

NCR remained to have the highest per capita GRDP index relative to the national average at 265.35 percent in 2008, an increase of 4.12 index points from 261.2 percent the previous year. NCR is followed by CAR at far second with an index of 121.40 percent despite contracting by 2.58 index points from 123.98 percent in 2007. Northern Mindanao posted the third highest at 108.69 percent, which grew by 1.41 index points from 107.29 percent in 2007. NCR, CAR and Northern Mindanao are the only regions whose per capita GRDP index relative to the national average lies above 100 percent.

On the other hand, ARMM continued to register the lowest per capita GRDP index relative to the national average in 2008 at 22.77 percent in 2008, contracting by 0.5 index points from 23.27 percent in 2007. Eastern Visayas, Ilocos, Cagayan Valley, Central Luzon, and CALABARZON, whose per capita GRDP index relative to the national average were below 100 percent, also posted sustained contractions in the past three years.

Relative to the national per capita GDP average of PhP 15,686 in 2008 at constant 1985 prices, all the island groups posted a per capita GDP index below 100 percent. Visayas remained to have the highest per capita GRDP index in 2008 at 81.66 percent followed by Luzon (excluding NCR) at 75.2 percent. Meanwhile, Mindanao posted the lowest at 74.6 percent.

Full text and tables of the highlights of the 2006-2008 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