Contact Person: Irenea B. Ubungen

Tel. No.: (072) 888 2160/700 3035

E-mail: nscbregion1@yahoo.com

PR-200707-RO1-023
PRESS RELEASE

July 16, 2007

Ilocos Region’s Economy Posts 6.2 Percent Growth in 2006

The economy of the Ilocos Region, as measured by the Gross Regional Domestic Product (GRDP), posted a 6.2 percent growth in 2006, higher than its 5.2 percent growth in 2005. The accelerated growth of the regional economy was largely due to the good performances of the Agriculture, Fishery and Forestry (AFF) and Services sectors which contributed 3.1 and 2.2 percentage points, respectively, to the region’s growth.

AFF, contributing the highest share of 43.4 percent to the region’s output, grew by 7.3 percent, from 7.7 percent the previous year, due to the higher outputs of fishery, palay and poultry. The slower growth was traced to the negative outputs of other crops and livestock.

Services, with a 43.0 percent contribution to the regional economy, increased by 5.1 percent, slightly higher than its 4.9 percent growth in 2005. All of its sub-sectors exhibited positive growths with finance, government services and private services exhibiting faster growths of 7.0 percent, 5.2 percent and 3.7 percent, respectively. On the other hand, trade, Transportation, Communication and Storage (TCS) and Ownership of Dwellings and Real Estate (ODRE) recorded decelerated growths of 5.3 percent, 6.1 percent and 4.5 percent, respectively. Nonetheless, among the services subsectors, trade contributed the highest share of 16.6 percent to the region’s total output followed by ODRE with 8.3 percent.

Industry managed to post a 5.8 percent growth, a turnaround from its negative 0.9 growth in 2005, in spite of the negative growth of electricity and water, and mining and quarrying. The strong performances of manufacturing and construction, which grew by 4.4 percent and 9.3 percent, respectively, contributed to the growth of Industry. Electricity and water contracted by 4.2 percent as a result of the negative output of electricity generation while mining and quarrying declined by 6.1 percent due to the dismal performance of stone quarrying.

In terms of growth, Region 1 was one of the 11 regions with accelerated growths in 2006. It ranked 5^th highest among the 17 regions of the country. Cagayan Valley posted the highest growth of 7.2 percent followed by National Capital Region (NCR) and Northern Mindanao with 6.8 percent growth each, and SOCCSKSARGEN with 6.7 percent.

In terms of contribution to the country’s Gross Domestic Product, Ilocos Region contributed 3.0 percent in 2006, the 9^th lowest nationwide but the highest among Northern Luzon regions.

The GRDP measures the goods and services produced by the various industries within the region. It is compiled on an annual basis by the National Statistical Coordination Board (NSCB).

IRENEA B. UBUNGEN

Head, NSCB Regional Division I