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Gross Regional Domestic Product (GRDP) Highlights
 Amidst
concerns over the much-talked about fiscal crisis, effects
of rising oil prices and devastation caused by a few of
the strongest typhoons in the last quarter of 2004, the
country’s economy showed resilience with the gross
domestic product (GDP) accelerating to 6.1 percent from
4.7 percent in 2003.
All
of the three major sectors of the economy registered faster
growths than a year ago with agriculture, fishery and forestry
(AFF) growing by 5.1 percent from 3.5 percent in 2003, industry
by 5.2 percent from 3.6 percent, and services by 7.1 from
5.8 percent.
The
services sector, which accounted for 47.6 percent of the total
economy, contributed 3.3 percentage points to GDP growth as
all its subsectors posted accelerated growths, with transportation,
communication and storage (TCS) leading the way with 11.2
percent growth.
 The
industry sector, which had a 33.6 percent share of the total
economy, put in 1.8 percentage points to total growth. Construction
rebounded from its 4.0 percent slump in 2003 as it posted
a 7.4 percent growth in 2004. Mining and quarrying, on the
other hand, slowed down to 2.6 percent from a high 16.8 percent
growth in the previous year.
AFF,
which accounted for 18.2 percent of the economy, contributed
1.0 percentage point to national growth.
Cagayan
Valley posted a robust 10.7 percent growth in gross regional
domestic product (GRDP) outpacing all other regions in 2004.
It was followed by Western Visayas with 7.9 percent; National
Capital Region with 7.6 percent; Central Visayas, 7.2 percent;
and Eastern Visayas and Davao Region, both growing at 6.9
percent. The three regions that registered the lowest growths
were Central Luzon with 2.1 percent; CALABARZON, 3.3 percent;
and the Cordillera Administrative Region (CAR), with 4.1 percent.
Except for Central Luzon and MIMAROPA, which both experienced
economic slowdown, all regions recorded accelerated growths.
 The
National Capital Region (NCR) continued to account for the
bulk of the country’s economy with a 31.3 percent share
of the national GDP. This was followed by CALABARZON with
12.6 percent; Central Luzon, 8.6 percent; Western Visayas,
7.6 percent; and Central Visayas, 7.1 percent.
NCR,
the largest regional economy, spearheaded the country’s
economic expansion in 2004, contributing 2.3 percentage points
to the growth of the GDP. This was followed by Western Visayas
which put in 0.6 percentage point; Central Visayas, 0.5 percentage
point; CALABARZON, 0.4 percentage point; and Northern Mindanao
and Davao Region, each with 0.3 percentage point contribution.
Economic Performance by Island Group
and Regions
The
six regions in the Luzon Island group, excluding NCR, contributed
34.6 percent to the economy, slightly down from its aggregate
share of 35.3 percent in 2003. On the other hand, the Visayas
Island group, consisting of three regions, increased its aggregate
share from 16.7 percent in 2003 to 17.0 percent in 2004. The
Mindanao Island group covering 6 regions maintained its share
at 17.1 percent.
In
terms of contribution to national growh, NCR contributed 2.4
percent while the Luzon Island group (excluding NCR) shared
1.4 percentage points. The Visayas Island group, on the other
hand, contributed 1.3 percentage points and Mindanao put in
1.0 percentage point.
National
Capital Region
NCR
expanded on the strength of its industries and services. The
turnaround of the construction industry from a 2.0 percent
contraction to a sturdy 9.5 percent growth and the pumped
up performance of the manufacturing subsector propelled the
industry sector’s strong showing. The accelerated economic
activities in all subsectors but trade fueled the substantial
expansion of the services sector.
Luzon Island Group (excluding NCR)
The
aggregate domestic product of the Luzon Island group, excluding
the NCR, increased by 4.0 percent, a slight improvement from
its 3.8 percent growth in 2003. Buoyed up by a strong services
sector, the aggregate GRDP of the Luzon Island group accelerated
slightly to 4.0 percent in 2004 from 3.8 percent the previous
year, contributing 1.4 percentage points to the growth of
the country’s economy. Much of the economic activities
in Luzon, outside of NCR, was in CALABARZON, which had a 36.4
percent share of the group’s aggregate domestic product
and which contributed 29.8 percent of the Island group’s
share in national growth. Also included in the group were
the country’s fastest growing regions, Cagayan Valley,
and a resurgent Bicol Region, which accelerated to 6.3 percent
from its year-ago growth of 5.3 percent. On the other hand,
it also covered Central Luzon, which recorded the slowest
growth in 2004, a slow down from 3.4 percent in 2003 to 2.1
percent.
Cagayan
Valley’s upsurge from 1.2 percent in 2003 to 10.7 percent
in 2004 was powered by the substantial increase in AFF activities
from a virtual standstill of 0.2 percent growth in 2003 to
a substantial 16.4 percent increase in 2004, the fastest rate
among the regions of the country, and the complete turnaround
of industries from a 6.2 percent slouch in 2003, to a 6.5
percent expansion in 2004. The improvement in the industry
sector had much to do with the remarkable recovery of the
construction sector from a double-digit slump a year ago to
7.9 percent in 2004 and the acceleration in the mining and
quarrying activities from 5.5 percent in 2003 to 7.8 percent
in 2004. The deceleration in the services sector, from 6.2
percent to 4.8 percent, did little to offset these gains.
Central
Luzon, on the other hand, experienced a slowdown, from 3.4
percent growth in 2003 to 2.1 percent in 2004. While services
grew at the same pace as in the previous year at 5.3 percent,
industry dipped by 0.8 percent while AFF posted a slower growth
of 1.7 percent from 3.4 percent in 2003. The continued plunge
of mining and quarrying, from a 5.1 percent decline in 2003
to a further 11.8 percent drop in 2004, took a heavy toll
on the industry’s aggregate performance even as construction
recovered from a 3.9 percent contraction in 2003 to 7.5 percent
growth.
Visayas
Island Group
The
Visayas Island group, consisting of only 3 regions, accounted
for 17.0 percent of the country’s economy, almost the
same as with Mindanao’s, and contributed an aggregate
of 1.3 percentage points to national growth. Its combined
growth of 7.5 percent was an improvement from its 5.3 percent
growth in 2003. All of the three Visayan regions registered
robust growths, two of which figured among the 5 fastest growing
regions in the country for the year. Western Visayas, which
had 44.6 percent share of the Visayas’s economy, accounted
for almost half or 47.7 percent of the Islands group’s
contribution to national growth.
Western Visayas’ economy further expanded in 2004 as
it posted an accelerated growth of 8.0 percent from 5.8 percent
in 2003. The increase was driven by the improved performance
of all major sectors with AFF exhibiting the biggest expansion
from 4.1 percent to 7.6 percent; industry to 7.3 percent from
6.0 percent; and services, 8.7 percent from 7.0 percent.
Similarly,
Central Visayas experienced significant economic growth of
7.2 percent in 2004, a 2.6 percentage point improvement over
its previous year’s growth. All major sectors recorded
gains with AFF showing the biggest increment from 1.2 percent
in 2003 to 5.3 percent in 2004.
Eastern
Visayas’ economy managed to sustain its momentum outpacing
its 2003 growth of 5.4 percent with 6.9 percent in 2004. The
5.2 percentage point increment in the growth of industries
more than compensated for the slight slowdown in AFF, from
7.3 percent to 5.7 percent, and services, from 6.3 percent
to 5.6 percent.
Mindanao Island Group
The
Mindanao Island group maintained its share of the country’s
economy in 2003 at 17.1 percent, and contributed 1.0 percentage
point to GDP growth. All six regions recorded accelerated
growths, with Davao Region, SOCCKSARGEN and Northern Mindanao
emerging as top performers. The aggregate growth of Mindanao
economy improved from 4.5 percent in 2003 to 6.1 percent in
2004.
Davao
Region, which accounted for 4.6 percent of the country’s
economy and 30.1 percent of Mindanao’s domestic product,
further pushed its growth momentum, expanding by 6.9 percent
from 4.8 percent the previous year. The growth was anchored
on the robust performances of the AFF and Service sectors,
which expanded by 7.6 percent apiece.
The
economy of Caraga grew by 5.2 percent in 2004 from 2.4 percent
in 2003. The industry sector recovered from an 8.0 percent
contraction in 2003 by posting a 3.2 percent growth in 2004.
The recovery was mainly brought about by the turnaround in
construction activities from the 26.5 percent slump in 2003
to a healthy 7.7 percent growth. Mining and quarrying likewise
rebounded from a 2.5 percent drop in 2003 to register a 1.2
percent expansion. AFF and sevices registered decelerated
growths.
Zamboanga
Peninsula’s economy inched up by 0.2 percentage point
from its 2003 growth, registering a 4.7 percent expansion,
the lowest among Mindanao regions. The region accounted for
15.4 percent of Mindanao’s economy. Industries were
the major growth-contributing factor increasing by 6.2 percent
in 2004 from the previous year to 2.9 percent. The services
sector accelerated to 6.5 percent from 6.1 percent while AFF
slowed down to 3.1 percent from 3.9 percent in 2003.
Per
capita GRDP
The
Visayas Island group registered the biggest improvement in
per capita GRDP in 2004, increasing by 5.8 percent in 2004
from 3.6 percent in 2003. Among its three regions, Western
Visayas posted the highest per capita GRDP at 6.7 percent.
Central and Eastern Visayas also registered increases in per
capita GRDP from 2.6 percent in 2003 to 5.2 percent, and from
3.9 percent to 5.4 percent, respectively.
Per
capita GRDP in the Luzon Island group, excluding NCR, expanded
by 2.6 percent, slightly better than the 2.4 percent increase
in 2003. Cagayan Valley showed the highest improvement, with
a turnround growth of 8.9 percent in 2004 from a 0.4 percent
drop in 2003. Of the remaining regions in the group, which
all had higher growth of per capita GRDP, only MIMAROPA experienced
a slowdown, from 9.0 percent increase in 2003 to 2.4 percent.
In
Mindanao, per capita GRDP grew by 4.0 percent, an improvement
over the 2.3 percent increase in 2003. Davao Region registered
the highest growth with 5.0 percent from 2.8 percent in 2003
while Caraga posted the highest increment from .01 percent
to 4.2 percent. The rest of the regions in the group had accelerated
growths in per capita GRDP.
Meanwhile,
NCR posted the highest per capita index relative to the national
average with 241.02, followed by CAR with 138.85. All other
regions posted indexes lower than the national average with
ARMM registering the lowest at 23.30.
Economic performance by industry
Agriculture,
Fishery and Forestry
The
combined agriculture, fishery and forestry (AFF) sectors,
which comprised 18.8 percent of the national economy accelerated
top 5.1 percent in 2004 from 3.5 percent growth in 2003.
Eight of 16 regions (excluding NCR) registered faster growths
in AFF in 2004. The leading regions included Cagayan Valley
with 16.4 percent; Caraga with 11.3 percent; Western Visayas
and Davao Region with 7.6 percent apiece; and Eastern Visayas
and SOCCSKSARGEN, each with 7.0 percent. CALABARZON, which
contracted by 3.3 percent in 2003, declined further by 2.5
percent in 2004, while CAR and ARMM recovered from slight
decline in 2003 to post 5.3 percent and 6.7 percent growth,
respectively. The rest of the regions experienced decelerated
growths.
Western
Visayas contributed 0.9 percentage point to the growth of
the sector. Rounding up the top 3 contributors to growth were
Cagayan Valley, which put in 0.86 percentage point, and SOCCSKSARGEN
with 0.55 percentage point. The top AFF producers were Western
Visayas, which had the largest share, 12.3 percent, of the
national gross value-added in AFF in 2004; CALABARZON, with
12.0 percent share, and Central Luzon, with 10.5 percent share.
Industry
The
overall industry sector, which shared 33.6 of the GDP, went
up by 5.2 percent in 2004 from 3.6 percent growth the previous
year. The construction industry made a remarkable recovery
from 4.0 percent down in 2003 to 7.4 percent increase in 2004.
Manufacturing paced up to 5.1 percent in 2004 from 4.2 percent
in 2003, and so did EGW, with 4.2 percent increase from 3.2
percent in 2003. Mining and quarrying, on the other hand,
plunged from 16.8 percent in 2003 to 2.6 percent in 2004.
Nine
regions, including the top industrial center, NCR, registered
accelerated growths. On the other hand, four regions, including
notably, the second largest industry hub CALABARZON, slowed
down in 2004. Ilocos, Cagayan Valley, and Caraga all rebounded
from a contraction in 2003 while Central Luzon posted a reversal
from 1.6 percent in 2003 to nosedive by 0.8 percent in 2004.
The
top three regions that contributed to improved growth of the
industry sector were NCR, with 2.3 percentage points; CALABARZON
with 0.6 percentage point and Western Visayas with 0.4 percentage
point.
NCR
had a 33.5 percent share of the national industry production;
CALABARZON, 16.1 percent, and Central Luzon, 9.8 percent.
Services
Relying
on the good performance of all its subsectors, except government
services, the services sector, representing 47.6 percent of
the country’s economy, posted a stronger growth of 7.1
percent in 2004 from 5.8 percent in 2003. Government services
slightly decreased from 2.9 percent in 2003 to 2.2 percent
in 2004 while all the other services had accelerated growths.
TCS was up by 11.2 percent higher than its 8.6 percent gain
in 2003. Trading activities further increased from 5.7 percent
to 6.8 percent. Finance improved from 7.1 percent to 8.4 percent
in 2004 while ODRE registered a 5.3 percent growth in 2004,
up from 4.0 percent in the previous year. Private services
accelerated to 6.7 percent in 2004 from 5.1 percent in 2003.
While
all regions registered increased activities, twelve of them,
including the top services centers, NCR, CALABARZON, and Western
and Central Visayas, posted accelerated growths in 2004. On
the other hand, five regions consisting of Cagayan Valley,
MIMAROPA, Bicol, ARMM and Caraga experience a slow down. Western
Visayas emerged as the fastest growing region in the services
sector with 8.6 percent growth. This was closely followed
by Central Visayas with 8.3 percent, NCR with 7.9 percent,
Davao Region with 7.6 percent. Central Luzon, on the other
hand, managed to sustain its 5.3 percent growth, while the
regions that slowed down in 2004 also registered the lowest
growth rates.
Leading
regions in terms of contribution to services growth included
the NCR, which contributed 3.3 percentage points; Central
Visayas with 0.71 percentage point; and CALABARZON with 0.63
percentage point.
NCR
accounted for 42.1 percent of the services sector., with CALABARZON
and Central Visayas contributing 10.4 percent share and 8.7
percent share, respectively.
Implicit
Price Index and Inflation
A
comparative analysis of the implicit price index (IPIN) showed
that NCR recorded the highest IPIN at 484.23 while the lowest
at 324.33 was registered in MIMAROPA. This implies that the
prices of goods and services produced in NCR were almost 5
times the prices in 1985. Similarly, in MIMAROPA, the prices
of goods and services in 2004 more than tripled prices of
similar goods and services in 1985.
ARMM
and Eastern Visayas exhibited the highest year-on-year increases
in average prices of goods and services produced in 2004 with
10.9 and 10.0 percent inflation. Inflation was generally higher
in Mindanao.
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