HIGHLIGHTS

 

Gross Regional Domestic Expenditure, 2015 to 2017

Release Date: Thursday, July 19, 2018

The Gross Regional Domestic Expenditure (GRDE) grew by 6.7 percent in 2017. This was lower than its 2016 growth of 6.9 percent. GRDE is the sum of all final uses of goods and services in the regional economies during the year.

Mindanao posted the highest growth with 7.2 percent compared with the previous year’s 6.3 percent. Luzon and Visayas posted growths of 6.8 percent and 5.6 percent, respectively, in the same period (Figure 1).

Luzon continued to get the highest share of the country’s expenditures, accounting for 73.2 percent of the total expenditures. On the other hand, Mindanao and Visayas contributed 14.4 percent and 12.4 percent to the total GRDE, respectively.

The biggest contributor to the 2017 GRDE growth was the Luzon group, with NCR and Other Luzon contributing 2.2 and 2.7 percentage points, respectively to the total growth of 6.7 percent during the year.  Meanwhile, Visayas and Mindanao island groups contributed 0.7 and 1.0 percentage points, respectively.

All 17 regions posted positive economic growth from 2016 to 2017 with Cordillera Administrative Region’s (CAR) economy growing the fastest. Nine regions recorded accelerated growths during the year: CAR (12.1 percent); Davao Region (10.9 percent); Western Visayas (8.4 percent); SOCCSKSARGEN (8.2 percent); ARMM (7.3 percent); Cagayan Valley (7.2 percent); CALABARZON (6.7 percent); MIMAROPA (6.2 percent); and Caraga (4.3 percent).

The following regions’ economies also grew, but at a slower pace: Central Luzon (9.3 percent); National Capital Region (NCR) (6.1 percent); Northern Mindanao (5.9 percent); Ilocos Region (5.8 percent); Central Visayas (5.1 percent); Bicol Region (5.1 percent); Zamboanga Peninsula (2.3 percent); and Eastern Visayas (1.8 percent).

NCR remained to have the largest domestic spending with 36.4 percent of the total GRDE. This was followed by CALABARZON with 16.8 and Central Luzon with 9.7 percent share.

On the other hand, ARMM and Caraga had the least share of total expenditures with 0.6 percent and 1.2 percent, respectively.

 

Sectoral highlights

1. Household Final Consumption Expenditure (HFCE)

     1.1       Total HFCE

The country’s household final consumption expenditure (HFCE), which comprised 68.9 percent of total expenditures, grew by 5.9 percent in 2017.

In terms of the country’s island groupings, Visayas recorded the highest HFCE growth at 6.2 percent with Luzon and Mindanao groups closely following with 5.9 percent and 5.3 percent, respectively.

Central Luzon posted the highest growth of 7.5 percent, slower than the previous year’s growth of 9.1 percent. Davao Region and MIMAROPA posted 7.4 percent and 7.2 percent, respectively.  On the other hand, the region with the lowest HFCE growth was ARMM with 2.7 percent, but faster than its 1.3 percent growth in 2016 (Figure 3).

NCR remained the highest spending region on consumer goods and services at 23.0 percent of the national HFCE. Trailing behind were CALABARZON and Central Luzon at 16.3 percent and 12.7 percent, respectively, of the total HFCE.

Meanwhile, ARMM and Caraga continued to be the low spending regions contributing 1.3 percent and 1.6 percent, respectively.

     1.2       Per Capita HFCE

Central Luzon per capita HFCE posted the highest expansion in real terms at 6.0 percent in 2017. Davao Region followed at 5.4 percent. On the other hand, ARMM rebounded to 0.2 percent from a decline of 1.2 percent in 2016.

2. Government Final Consumption Expenditures (GFCE)

Government final consumption expenditure grew by 7.0 percent in 2017, lower than the previous year’s 9.0 percent growth. 

Among the three major island groups, Visayas posted the highest growth in 2017 at 8.2 percent.  Meanwhile, Mindanao and Luzon recorded 7.6 percent and 6.6 percent, respectively. 

All regions posted positive growth in 2017 with Ilocos Region having the highest growth at 10.9 percent.  This was followed by: Cagayan Valley, 9.2 percent; and Zamboanga Peninsula, 8.9 percent.  Meanwhile, the three regions with lowest growths were: MIMAROPA, 5.2 percent; NCR, 5.6 percent; and Caraga, 6.2 percent (Figure 5).

Among all regions, NCR had the highest share accounting for 46.6 percent, almost half of the total government expenditures. The next top three regions were: Central Luzon (6.1 percent), CALABARZON (6.0 percent), and Western Visayas (4.6 percent).  On the other hand, CAR, Caraga and MIMAROPA were the regions with the lowest registered shares of 1.8 percent, 1.9 percent and 1.9 percent, respectively.

3. Gross Domestic Capital Formation (GDCF)

Total gross domestic capital formation in 2017 decelerated to 9.4 percent. This was slower than the 24.5 percent in 2016. Meanwhile, fixed capital formation grew by 9.5 percent in 2017, lower from the 26.1 percent growth during the previous year.

     3.1       Construction

Investments in total construction amounted to Php 840.0 billion in 2017, up by 5.9 percent compared with the Php 793.5 billion in 2016. Among the major island groups, Luzon (excluding NCR) registered majority of the investments in construction with 40.5 percent share of the total investments in construction. Visayas, meanwhile contributed 22.4 percent of the total construction investments while Mindanao had a share of 23.2 percent.

Of the three island groups, Gross Value of construction grew the fastest in Mindanao at 13.5 percent in 2017. Likewise, Luzon grew by 6.4 percent in 2017. On the other hand, total Construction investments in Visayas declined by 2.2 percent.

Among the regions, Construction investments in Davao Region grew the fastest in 2017 with a growth of 37.1 percent. This was followed by Cordillera Administrative Region with 23.9 percent, and Central Luzon with 22.8 percent.

CALABARZON lead the total construction investments with 14.1 percent share, followed by National Capital Region with 13.9 percent and Central Visayas with 11.5 percent. On the other hand, ARMM had the least contribution to the total investment at 0.2 percent.

Growth in Public Construction expanded by 12.7 percent in 2017. Davao Region grew the fastest with 85.6 percent, followed by ARMM with 44.3 percent, and Cordillera Administrative Region with 36.2 percent. Regions that suffered contractions were Zamboanga Peninsula which declined by 31.4 percent, Central Visayas with 9.3 percent, Northern Mindanao with 0.4 percent, and National Capital Region with 0.2 percent.

Private construction, which accounted for 74.5 percent of total investments in construction, grew by 3.7 percent. Zamboanga Peninsula posted the highest growth with 29.9 percent. This was followed by Cagayan Valley with 29.3 percent, and Central Luzon with 22.3 percent.

     3.2      Durable Equipment (DE)

Investments in durable equipment posted 10.7 percent growth in 2017. This was lower than the previous year’s 37.7 percent.

The Luzon group posted 14.3 percent growth in 2017, while Visayas and Mindanao declined by 9.3 percent and 0.1 percent, respectively.

Among the regions, NCR, which accounted for 52.2 percent in 2017, grew by 25.9 percent in 2017.  Other regions with notable expansion in DE were: Western Visayas, 57.4 percent; Ilocos Region, 22.8 percent; and Central Luzon, 21.6 percent (Figure 7).

     3.3       Breeding Stocks and Orchard Development (BSOD)

The combined investments on breeding stocks and orchard development slowed down to 3.3 percent, compared with previous year’s 3.6 percent growth. 

Luzon continued to lead in investments in breeding stocks and orchard development with 61.9 percent, followed by Mindanao group with 21.8 percent and the Visayas group with 16.2 percent. Continuous growth in investments was posted in 2017 for Luzon at 1.1 percent, Visayas at 6.2 percent and Mindanao at 7.8 percent.

Among the regions, Bicol Region registered the highest growth at 11.8 percent. This was followed by Northern Mindanao and MIMAROPA which grew by 10.7 percent and 8.5 percent, respectively. Meanwhile, Central Luzon, ARMM and NCR regions posted the declines with 4.1 percent, 2.8 percent and 1.4 percent, respectively (Figure 8).

     3.4       Intellectual Property Products (IPP)

Intellectual Property Products includes expenditures on research and development, mineral exploration, computer software and databases, and entertainment, literary or artistic originals.

Expenditures on IPP amounted to Php 107.7 billion in 2017, 32.5 percent higher than the Php 81.3 billion recorded in 2016.  Both Visayas and Mindanao have accelerated growths of 34.7 percent and 37.7 percent, respectively. Meanwhile, Luzon slowed down to 32.2 percent growth.

By region, Ilocos recorded the highest growth in 2017 at 69.1 percent. It was followed by Bicol and Eastern Visayas with 60.9 percent and 57.7 percent, respectively (Figure 9).

     3.5       Changes in Inventories (CIN)

Changes in Inventories posted additions which amounted to Php 19.1 billion in 2017.  

By major island group, Luzon recorded additions of Php 20.2 billion in 2017 compared with the withdrawals of Php 5.2 billion in 2016. Meanwhile, Visayas and Mindanao registered additions of Php 0.6 billion and withdrawals of Php 1.7 billion in 2017, respectively.

Among the regions, 10 regions posted additions in their inventories in 2017. The top three regions were Ilocos Region, posting an amount of Php 4.3 billion; Central Luzon with Php 4.1 billion; and CALABARZON with Php 4.0 billion. On the other hand, three regions that recorded the largest withdrawals were: Davao Region with Php 2.8 billion; Eastern Visayas with Php 1.6 billion; and Zamboanga Peninsula with Php 1.5 billion.   

4. Net Exports

The Philippines recorded deficit net exports in 2017 which amounted to Php 726.7 billion, a higher deficit compared with Php 663.9 billion in 2016. All regions posted deficits except for three regions: NCR, Php 400.6 billion; CAR, Php 18.7 billion; and Davao Region, Php 1.3 billion.

GROSS REGIONAL DOMESTIC EXPENDITURE

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