The Ilocos Region’s economy, as measured by the Gross Regional Domestic Product (GRDP), posted an accelerated growth of 3.1 percent in 2001 from 2.7 percent in 2000. The good performance of Agriculture, Fishery and Forestry (AFF) was able to offset the slump in the Industry sector. The GRDP is an aggregate measure of the goods and services produced by the regional economy.

Services, the biggest contributor to the region’s economy with a 43.3 percent share, posted a 4.0 percent growth though slower than its 5.3 percent growth a year ago. The share of this sector to the region’s economy had been increasing over the past three years. All of the subsectors grew except government services which registered a negative 1.4 percent growth.

Transportation, Communication and Storage grew the fastest at 9.1 percent largely due to the increase in the number of motor vehicles for hire. Trade also grew at 5.1 percent. Likewise, private services grew at 3.9 percent brought about by the increase in medical and hotel and restaurant services while ownership of dwellings and real estate increased by 3.6 percent due to the expansion of residential building construction. On the other hand, finance grew at 2.1 percent due to the improved performance of the insurance subsector.

The AFF sector, which used to be the dominant sector in the region, held on to its 42.1 percent share of the region’s output. The faster growth of the sector at 4.5 percent was fueled by the increased production of palay, other crops and livestock and poultry due to improved weather condition.

 The negative 2.8 percent growth in the Industry sector was still an improvement from its dismal performance in the preceding year’s 4.0 percent contraction.

But while the regional economy continued to sustain its growth, Ilocos Region, for the last three years, remained number eight in terms of contribution to the Gross Domestic Product (GDP). The NCR has consistently been the country’s biggest contributor to the GDP. Likewise, the region’s growth rate in 2000-2001 was only sixth among the regions, six notches higher than its rank in the previous year. Region X was the country’s best performing economy in 2001 with a growth rate of 5.0 percent. Ilocos Region had the fastest growing economy in 1997-1998 but it registered the slowest growth among the regions in the following year.