NSCB - Press Release - Real investments in construction stimulate regional domestic expenditures in 2007

Real investments in construction stimulate regional domestic expenditures
in 2007
(PR-200708-ES2-01, Posted 22 August 2008)

Expenditures on the Gross Regional Domestic Product, which is the sum of all final uses of goods and services in Philippine regional economies, amounted to Php1,368.6 billion in 2007, about 7.2 percent higher than the year-ago level of Php1,276.9 billion.

Fourteen out of the 17 regions recorded accelerated growths in expenditures in 2007. The highest growth rates were recorded in MIMAROPA, Caraga, and Central Visayas. Only three regions showed deceleration in expenditures. These were Eastern Visayas at 3.2 percent in 2007 from 5.2 percent in 2006; Cagayan Valley from 7.4 percent to 6.6 percent; and Ilocos Region, from 6.1 percent to 5.8 percent.

The economy’s total expenditures was stimulated by the upsurge in Fixed Capital Formation, which grew by 11.8 percent from the previous year’s 3.8 percent, led by increased real investments in Construction.

The total construction of all regions posted stronger growths in 2007. Bicol Region registered the highest growth of 39.9 percent from 7.3 percent in 2006. NCR came in second with a 28.4 percent growth, followed by Zamboanga Peninsula at 25.5 percent.

Private construction, which accounted for 57.9 percent of total investments in construction, jumped by 15.9 percent, rebounding from a negative 3.7 percent growth in the previous year. Most of the regions posted turnaround growths in 2007. Bicol Region significantly increased to 52.8 percent in private construction, recovering from the previous year’s slump of negative 4.7 percent; followed by NCR, which posted a 33.3 percent growth from negative 5.6 percent; and MIMAROPA, with 31.9 percent growth from last year’s contraction of 7.4 percent.

Public construction remained strong, with a remarkable increase of 29.6 percent, albeit slightly lower than the previous year’s 31.4 percent growth. Investments in NCR significantly decelerated to 14.7 percent from 97.6 percent in 2006; followed by MIMAROPA, growing at 10.0 percent from 20.4 percent, and Central Luzon, increasing at 21.6 percent from 25.4 percent. Investments in CALABARZON continued to soar at 82.2 percent, slightly higher than the 82.1 percent growth in 2006; followed by Davao Region with 51.8 percent growth from 45.6 percent; and Northern Mindanao, with a growth of 41.4 percent from 41.1 percent.

Meanwhile, NCR continued to have the biggest share to total expenditures at 32.6 percent, valued at Php446.8 billion from Php414.3 billion. Other regions with bigger shares to total expenditures were: CALABARZON, 12.1 percent; Central Luzon, 8.3 percent; and, Western Visayas and Central Visayas, with 7.2 percent each. On the other hand, ARMM, Caraga, and Cagayan Valley contributed the least to total expenditures with 0.9 percent, 1.3 percent and 2.0 percent shares, respectively.

ROMULO A. VIROLA
Secretary General

Contact Person:

Ms. Vivian R. Ilarina
Tel. No.: 895-2425/895-2481
E-mail: vr.ilarina@nscb.gov.ph

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