The National Capital Region (NCR) consistently topped the regional share to total expenditures with 31.9 percent of total expenditures, contributing P 385.6 billion, 7.1 percent higher than its year-ago level of P 359.9 billion but slower than its 8.4 percent growth in 2004. It is also the top contributor to the growth of total expenditures. CALABARZON trails NCR with 12.5 percent, followed by Central Luzon with 8.5 percent, Western Visayas, 7.3 percent and Central Visayas, 7.1 percent. Meanwhile, Muslim Mindanao, CARAGA, and Cagayan Valley contributed the least to total expenditures with 0.9 percent, 1.3 percent and 2.0 percent share, respectively.

Zamboanga Peninsula posted the highest increase in spending with an accelerated growth of 7.2 percent from previous year’s 4.1 percent, which, however, was only 2.7 percent of total expenditures. Growth was stimulated mainly by the upsurge in its Personal Consumption Expenditure (PCE) of 7.0 percent compared to 4.0 percent in 2004, notwithstanding the 10.4 percent contraction in capital formation from 22.4 percent in 2004. Next was MIMAROPA, expanding its growth from 4.1 percent to 6.5 percent. Three other regions, Central Luzon, Ilocos Region, and CARAGA increased spending from 1.8, 5.4 and 3.1 percent to 2.9, 6.0 and 3.5 percent, respectively.

While the rest of the regions experienced decelerated growth, Cagayan Valley posted the highest decline of 5.4 percent, a reversal from a high 10.4 percent growth in 2004. This was caused by the significant slowdown in consumer spending of 2.2 percent from 11.9 percent in 2004 and the slump in capital formation of 6.2 percent from 4.4 percent in 2004.

ROMULO A. VIROLA
Secretary General

Contact Person:

Ms. Regina S. Reyes
Tel. No.: 895-2425/895-2481
E-mail: rs.reyes@nscb.gov.ph