Highlights

 

Philippine economy posts 7.2 percent growth

Release Date: 31 July 2014
 
The Philippine economy posted a 7.2 percent growth in 2013, outpacing its 6.8 percent growth in 2012, as favorable business environment paved the way for the production of more goods and services cushioning the negative effects of the natural disasters that hit the country during the year.
 
The accelerated growth of Industry from 7.3 percent in 2012 to 9.3 percent in 2013 and the sustained growth of Services from 7.4 percent to 7.2 percent fueled the faster growth of the economy. Agriculture, Hunting, Forestry and Fishing (AHFF) was not able to surpass its minimal 2.8 percent growth in 2012, posting a measly 1.1 percent growth in 2013, making its contribution to the economy’s growth almost insignificant.
 
The major subsectors that contributed to the growth were the following: Manufacturing which grew by 10.3 percent; Financial Intermediation, 12.6 percent; Real Estate, Renting and Business Activities (RERBA), 8.7 percent; Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods, 5.7 percent; and, Public Administration and Defense; Compulsory Social Security (PAD), 3.8 percent.
 
Bicol Region’s economy posts fastest growth in 2013
 
Bicol Region’s economy recorded the fastest growth among the country’s 17 regions in 2013. It grew by 9.4 percent in 2013, surpassing its growth of 6.9 percent in 2012. It was followed by: National Capital Region (NCR) with 9.1 percent; SOCCSKSARGEN, 8.4 percent; Caraga, 7.8 percent; and Ilocos Region, 7.7 percent.
 
On the other hand, the economy of MIMAROPA posted the lowest growth rate at 1.7 percent in 2013, slower than its 4.8 percent in 2012. The Autonomous Region in Muslim Mindanao (ARMM) was second lowest with 3.6 percent in 2013 – an improvement from its 1.1 percent growth in 2012. Western Visayas closely followed with 4.1 percent growth in 2013 which is relatively lower as compared to its 7.7 percent growth in 2012.
 
Growth Rates of Regional Economies:
2011-12 and 2012-13, at Constant 2000 Prices
 
 
Seven regions record accelerated growth
 
Out of the country’s 17 regions, seven regional economies recorded accelerated growth from 2012 to 2013.
 
The economy of Eastern Visayas rebounded from a 6.4 percent contraction in 2012 to a growth of 5.7 percent in 2013. Other regions which recorded faster growth in 2013 were: NCR, from 7.0 percent to 9.1 percent; Cordillera Administrative Region (CAR), from 1.0 to 6.0 percent; Ilocos, from 5.2 to 7.7 percent; Bicol, from 6.9 to 9.4 percent; SOCCSKSARGEN, from 8.0 to 8.4 percent; and, ARMM, from 1.1 to 3.6 percent.
 
Zamboanga Peninsula’s economic growth, on the other hand, suffered the biggest deceleration - from a growth of 12.9 percent in 2012 to a 4.3 percent growth in 2013. Other regions that slowed down in 2013 were: Cagayan Valley, from 8.1 to 6.6 percent; Central Luzon, from 6.5 to 4.3 percent; CALABARZON, from 7.3 to 6.7 percent; MIMAROPA, from 4.8 to 1.7 percent; Western Visayas, from 7.7 to 4.1 percent; Central Visayas, from 9.4 to 7.4 percent; Northern Mindanao, from 7.2 to 5.6 percent; Davao Region, from 7.4 to 6.8 percent; and, Caraga, from 10.7 to 7.8 percent.
 
NCR continues to account for the largest share of the national economy
 
NCR continued to have the largest share of the country’s total economic output with a 36.3 percent share in 2013, slightly higher than its 35.7 percent share in 2012. It was followed by CALABARZON with a share of 17.4 percent and Central Luzon with 9.0 percent. On the other hand, ARMM accounted for the lowest share to the country’s Gross Domestic Product (GDP) at 0.7 percent.
 
In terms of contribution to the national GDP growth rate of 7.2 percent in 2013, NCR contributed the highest, at 3.2 percentage points; followed by CALABARZON with 1.2 percentage points; and Central Visayas with 0.5 percentage point. On the other hand, ARMM and MIMAROPA had less than 0.1 percentage point contribution. 
 
Economic Performance of the Regions
 
Industry spurs NCR’s economic growth
 
The economy of NCR accelerated from a 7.0 percent growth in 2012 to 9.1 percent in 2013. The growth was attributed to the higher growth of the Industry sector. 
 
Services continued to account for the largest share of the region’s economy with an 80.5 percent share in 2013, albeit lower than its 82.1 percent share in 2012. Meanwhile, Industry and AHFF accounted for 19.3 percent and 0.2 percent, respectively, of the region’s total output in 2013. 
 
The Service sector was able to sustain its 6.9 percent growth in 2013. Financial Intermediation accelerated from 6.8 percent in 2012 to 12.2 percent in 2013 while RERBA grew from 4.7 percent in 2012 to 9.2 percent in 2013. On the other hand, Transport, Storage and Communication (TSC) decelerated from 7.7 percent in 2012 to 4.9 percent in 2013. Trade and Repair slightly slowed down from 6.6 percent in 2012 to 6.0 percent in 2013. Likewise, PAD decelerated from 5.4 percent in 2012 to 3.0 percent in 2013, and Other Services from 10.5 percent in 2012 to 4.8 percent in 2013.
 
The Industry sector soared from a 7.7 percent growth in 2012 to 19.7 percent in 2013. The growth was attributed to the expansion of the Manufacturing subsector which grew from 7.1 percent in 2012 to 27.2 percent in 2013. Electricity, Gas and Water Supply (EGWS) also accelerated from 5.6 percent in 2012 to 5.9 percent in 2013. Meanwhile, Construction decelerated from 11.3 percent in 2012 to 9.4 percent in 2013.
 
The AHFF sector plunged from 10.8 percent in 2012 to negative 4.9 percent in 2013. The reversal in growth was due to the contraction of Agriculture and Forestry from 11.0 percent in 2012 to negative 5.0 percent in 2013. Fishing, on the other hand, turned around from negative 2.8 percent in 2012 to 4.8 percent in 2013.
 
Services contributed most to the region’s growth rate with 5.7 percentage points, followed by Industry with 3.5 percentage points. AHFF’s contribution to the region’s economic growth was nil. 
 
Cordillera’s economy speeds up as Industry and Services improve
 
The economy of CAR accelerated from 1.0 percent in 2012 to 6.0 percent in 2013. The faster growth of the regional economy was propelled by the continuous growth of Services and the recovery of Industry. 
 
Industry accounted for nearly half of the region’s economy at 48.8 percent in 2013, slightly lower than its share in 2012. AHFF’s share slightly shrank to 10.3 percent in 2013 from 10.8 in 2012 while the share of the Service sector expanded by 40.8 percent in 2013 from 39.5 percent in 2012.
 
Industry rebounded from negative 3.9 percent in 2012 to 4.1 percent in 2013 due largely to the double-digit growth posted by all its subsectors except Manufacturing. Construction grew the fastest at 17.2 percent followed by EGWS at 16.9 percent. Mining and Quarrying bounced back from negative 54.8 percent in 2012 to surge by 12.7 percent in 2013. Manufacturing turned around from negative 2.1 percent to 1.4 percent due to the improved performance of the region’s export processing zone last year.
 
Services accelerated from 7.9 percent in 2012 to 9.6 percent in 2013 due largely to the higher growth of RERBA and the continuous growth of all subsectors. RERBA surged by 19.7 percent while Financial Intermediation sped up by 14.7 percent in 2013. Other Services and PAD also accelerated by 6.6 percent and 6.4 percent, respectively during the period. On the other hand, TSC and Trade and Repair slowed down in 2013.
 
The AHFF sector decelerated from 1.5 percent in 2012 to 1.3 percent in 2013. Agriculture and Forestry managed to grow by 1.3 percent in 2013 despite the typhoons that affected the region. Fishing also grew but at a slower pace from 3.1 percent in 2012 to 2.6 percent in 2013. 
 
Services contributed most to the region’s overall growth rate with 3.8 percentage points followed by Industry with 2.0 percentage points. AHFF shared a modest 0.1 percentage point.
 
Services and Industry fuel Region I’s higher growth
 
The economy of Region I accelerated from a 5.2 percent growth in 2012 to 7.7 percent in 2013. The region’s higher growth was brought about by the faster growths of the Service and Industry sectors. 
 
The share of Services to the region’s economy remained the highest among the sectors. Its share increased from 48.7 percent in 2012 to 49.4 percent in 2013. The Industry sector followed with a share of 26.0 percent in 2013, slightly higher than its 25.3 percent share the previous year. On the other hand, AHFF contributed the least to the region’s output at 24.6 percent in 2013, slightly lower than its 25.9 percent share in 2012. 
 
Services grew faster from 6.7 percent in 2012 to 9.3 percent in 2013 due to the expansion of all its subsectors. Other Services and Financial Intermediation recorded higher growths in 2013 as compared to 2012, from 4.5 percent to 13.5 percent, and from 7.9 percent to 13.0 percent, respectively. RERBA also outpaced its previous performance as it grew from 6.5 percent the previous year to 8.9 percent in 2013. Trade and Repair (from 8.0 percent to 7.4 percent), TSC (from 8.1 percent to 5.2 percent) and PAD (from 4.8 percent to 3.4 percent) also recorded expansions in 2013 although these are lower than their growths in 2012. 
 
The Industry sector accelerated from a growth of 4.0 percent in 2012 to 10.5 percent in 2013. The growth of the sector was due to the faster growth of all its subsectors except Mining and Quarrying. Construction’s growth surged from 2.7 percent the previous year to 16.3 percent in 2013. Manufacturing also accelerated, from 2.9 percent in 2012 to 11.2 percent in 2013. EGWS grew faster from 3.9 percent to 7.4 percent. On the other hand, Mining and Quarrying slowed down from 14.8 in 2012 to 7.7 percent in 2013. 
 
Meanwhile, AHFF recorded a slower growth from 3.7 percent in 2012 to 2.1 percent in 2013. The slowdown was due to the deceleration of Agriculture and Forestry from 4.8 percent in 2012 to 1.0 percent in 2013. Meanwhile, Fishing rebounded from negative 0.8 percent in 2012 to 7.3 percent in 2013. 
 
The Service sector remained the largest contributor to the growth of Region I in 2013 with a contribution of 4.5 percentage points. The Industry sector contributed 2.7 percentage points while AHFF shared 0.6 percentage point.
 
Cagayan Valley’s economy expands despite AHFF’s sluggish growth
 
The economy of Cagayan Valley grew by 6.6 percent in 2013, albeit lower than its 8.1 percent growth in 2012. The slowdown was largely brought about by the slower growth of AHFF.
 
The Service sector remained as the biggest contributor to the region’s economy in 2013 with a 49.5 percent share, slightly higher than its 48.2 percent share the previous year. AHFF followed with a 38.4 percent share while the Industry sector accounted for the smallest at 12.1 percent of the region’s total output in 2013.
 
Services registered an accelerated growth, from 7.1 percent in 2012 to 9.4 percent in 2013, due to the expansion of all its subsectors. Other Services recorded the highest contribution to the sector’s growth as it grew faster from 4.8 percent in 2012 to 10.8 percent in 2013. RERBA also increased, from 5.4 percent in 2012 to 14.1 percent in 2013. Financial Intermediation outpaced its 11.5 percent growth in 2012 with its 12.9 percent growth in 2013 while Trade slightly accelerated from 5.4 percent to 5.5 percent. On the other hand, TSC and PAD decelerated from 11.1 percent to 9.2 percent and from 4.0 percent to 2.2 percent, respectively, during the same period.
 
AHFF managed to grow at 0.1 percent in 2013 but this is way below its 8.3 percent growth the previous year. Agriculture and Forestry, the bulk of the sector, posted a 0.1 percent growth in 2013. Fishing rebounded to a growth of 0.4 percent from a contraction of 6.4 percent in 2012.
 
Industry posted a faster growth from 11.5 percent in 2012 to 18.5 percent in 2013 due to the higher growth of all its subsectors. Construction grew from 15.8 percent in 2012 to 16.5 percent in 2013. Mining and Quarrying almost doubled its 15.8 percent growth in 2012 to 28.6 percent in 2013. The growth of Manufacturing and EGWS also accelerated, from 0.8 percent to 9.4 percent, and 4.8 percent to 21.0 percent, respectively. 
 
The Service sector contributed 4.6 percentage points to the region’s 6.6 percent growth rate in 2013. The Industry sector contributed 2.0 percentage points while AHFF had a less than 0.1 percentage point contribution.
 
Central Luzon’s economy decelerates
 
The economy of Central Luzon decelerated from 6.5 percent in 2012 to 4.3 percent in 2013 due to the slowdown of the region’s Industry sector.
The Service sector accounted for the largest share of the region’s total output at 42.1 percent followed by Industry sector at 40.9 percent. AHFF had the smallest share at 17.0 percent share.
 
The Service sector accelerated from 6.1 percent in 2012 to 7.5 percent in 2013. Meanwhile, Financial Intermediation sped up from 7.8 percent to 10.8 percent while RERBA quickened its pace from 6.4 percent to 10.2 percent. Other Services grew rapidly from 3.7 percent in 2012 to 9.4 percent in 2013. Other subsectors continued to grow but at a slower pace during the period. 
 
The Industry sector slowed down from 6.0 percent in 2012 to 0.8 percent in 2013 due to the reversal suffered by Manufacturing which is the biggest contributor to the sector. Manufacturing contracted by 1.3 percent from a 3.3 percent growth the previous year. Mining and Quarrying, and Construction decelerated from 41.7 percent to 11.8 percent and from 19.7 percent to 3.4 percent, respectively. Meanwhile, EGWS accelerated from 5.9 percent in 2012 to 22.1 percent in 2013.
 
The AHFF sector experienced a slower growth from 9.2 percent in 2012 to 5.4 percent in 2013 as Agriculture and Forestry decelerated from 11.6 percent to 6.1 percent while Fishing managed to rebound from negative 0.1 percent in 2012 to 2.2 percent in 2013.
 
The Service sector contributed the highest to the region’s economic growth at 3.1 percentage points followed by AHFF at 0.9 percentage point. Industry contributed the least at 0.3 percentage point in 2013. 
 
CALABARZON’s economy decelerated as its Industry sector slowed down
 
The economy of CALABARZON registered a decelerated growth of 6.7 percent in 2013, slightly lower than its 7.3 percent growth in 2012. The steady performance of Services and improved growth of AHFF cushioned the effect of the slower growth of Industry sector to the region’s performance. 
 
Industry accounted for the largest share of the region’s total output at 61.1 percent, followed by the Service sector at 32.7 percent and AHFF at 6.1 percent.
 
Industry slowed down from a 7.3 percent growth in 2012 to a 6.3 percent growth in 2013 due to the slower growth of Construction and the contraction of EGWS. From a double digit growth in 2012, Construction decelerated to 8.1 percent in 2013. EGWS suffered a reversal - from a 3.9 percent growth in 2012 to a 1.8 percent contraction in 2013. On the other hand, Mining and Quarrying soared from 2.0 percent in 2012 to 12.0 percent in 2013. Manufacturing also posted a faster growth - from 5.9 percent in 2012 to 6.7 percent in 2013.
 
The Service sector maintained its 8.1 percent growth in 2013. Financial Intermediation, RERBA and Other Services registered double digit expansions from 2012 to 2013: Financial Intermediation from 11.1 percent to 14.0 percent; RERBA, from 9.5 percent to 10.3 percent; and Other Services, from 6.1 percent to 11.8 percent. Other subsectors posted decelerated growths: TSC, from 7.8 percent to 6.1 percent; Trade and Repair, from 7.3 percent to 3.1 percent; and PAD, from 6.6 percent to 4.0 percent.
 
The AHFF sector accelerated from 2.5 percent to 3.8 percent in 2013 due to the increase in fish production. Fishing posted an accelerated growth from 3.9 percent in 2012 to 9.5 percent in 2013. However, Agriculture and Forestry slowed down slightly from 2.0 percent to 1.9 percent.
 
Industry was the biggest contributor to the growth of CALABARZON’s economy in 2013 with a 3.9 percentage point contribution to the 6.7 percent growth of the region. Services accounted for 2.6 percentage points of the growth in 2013 while AHFF contributed the least at 0.2 percentage point.
 
Services keeps MIMAROPA’s economy afloat
 
The growth of MIMAROPA’s economy slowed down from 4.8 percent in 2012 to 1.7 percent in 2013. Contractions in AHFF and Industry sector weighed heavily on the region’s economy.
 
Services remained the biggest contributor to MIMAROPA’s economy with a 43.2 percent share in 2013, slightly higher than its 40.5 percent share a year ago. Industry followed, accounting for 32.8 percent and the AHFF contributed the least at 24.0 percent.
 
Services grew by 8.4 percent in 2013, slightly slower than the 8.9 percent growth registered in 2012. Financial Intermediation maintained its fast pace posting a 12.8 percent growth, still a tad higher than the 12.3 percent performance in 2012. Other Services grew by 12.9 percent in 2013 from a 4.9 expansion the previous year. Meanwhile, the remaining four subsectors recorded slowdowns with RERBA posting the biggest deceleration shaving off 6.0 percentage points from its 15.6 percent growth in 2012. div>
 
Industry contracted by 2.8 percent in 2013, a reversal from its 4.1 percent growth in 2012. The 8.6 percent slump in Mining and Quarrying, which accounted for 65.3 percent of the sector’s output, pulled down Industry’s overall growth. Growth in Manufacturing decelerated to 5.6 percent in 2013, less than half of the 14.6 percent expansion posted in 2012. Construction, on the other hand, continued to accelerate with a 13.8 percent growth, way faster than the 3.2 percent acceleration in the previous year. In the same manner, EGWS surged by 15.5 percent, more than twice its pace in 2012. 
 
AHFF continued its decline by contracting further by 3.0 percent in 2013, from its 0.3 percent decline recorded a year ago. The 0.7 percent growth in Agriculture and Forestry was not enough to compensate for the 11.9 percent slump in Fishery to keep AHFF afloat. 
 
Services contributed 3.4 percentage points to the growth of the regional economy but this was chipped off by the negative 1.0 percentage point and negative 0.7 percentage point contributions of Industry and AHFF, respectively.
 
Bicol Region records fastest economic growth
 
Bicol Region’s economy posted a 9.4 percent growth in 2013, topping the other regions of the country. The Service sector was the strongest performer. 
Services remained the biggest contributor to the region’s output at 57.0 percent, followed by AHFF at 23.4 percent and Industry sector at 19.6 percent. The share of AHFF to the total economy declined from 24.4 percent in the previous year to 23.4 percent in 2013 while the shares of Industry and Services increased in 2013.
 
The growth of the Service sector accelerated from 6.2 percent in 2012 to 11.0 percent in 2013. Except for TSC, all its subsectors recorded higher growths. The growth of TCS slipped from 10.2 percent to 5.0 percent in 2013. Trade and Repair, on the other hand, posted a faster growth of 10.8 percent from 9.7 percent in 2012. Similarly, Finance registered an uptrend from a 10.9 percent growth a year ago to 14.4 percent in 2013. The growth of RERBA surged from 2.8 percent to 17.1 percent in 2013. PAD accelerated to 8.2 percent, higher than the 4.7 percent growth recorded the previous year. Similarly, Other Services grew from 2.2 percent in 2012 to 11.4 percent in 2013. 
 
The performance of AHFF improved from 2.9 percent in 2012 to 4.5 percent in 2013. Agriculture and Forestry’s growth improved from 3.1 percent the previous year to 5.4 percent in 2013. Fishing, on the other hand, decelerated from 2.5 percent to 2.0 percent
 
Industry expanded at a slower 10.8 percent pace in 2013 compared to 14.6 percent in 2012. Construction sustained its momentum growing by 14.2 percent – albeit slower than its 22.4 percent growth in 2012. EGWS accelerated from 9.3 percent in 2012 to 13.4 percent in 2013. Manufacturing also grew from 5.0 percent a year ago to 9.6 percent. Mining and Quarrying, on the other hand, contracted by 4.2 percent, a reversal from its 11.8 percent expansion in 2012. 
 
The Service sector was the largest contributor to the economic performance of Bicol Region in 2013 accounting for 6.2 percentage points of the 9.4 percent growth. Industry followed with a 2.1 percentage point contribution, while AHFF accounted for 1.1 percentage points.
 
Western Visayas’ economy slows down as AHFF slumps 
 
The economy of Western Visayas slowed down from 7.7 percent growth in 2012 to 4.1 percent growth in 2013. This was largely attributed to the slump in the AHFF and the slower growth of the Industry and the Service sectors. 
 
Services accounted for the largest share of the region’s economy at 57.9 percent, followed by AHFF at 23.5 percent and Industry at 18.6 percent in 2013. The percentage share of Services and Industry to the total output of the region increased while AHFF’s share decreased. 
 
Services grew at a slower pace from 7.7 percent in 2012 to 5.7 percent in 2013 due to the decelerated growth of the following: TSC from 8.2 percent to 4.5 percent; Trade and Repair from 11.7 percent to 5.5 percent and PAD from 5.3 percent to 2.5 percent. Other Services, on the other hand, posted a growth of 9.5 percent, more than twice its previous year’s growth of 4.6 percent. Financial Intermediation expanded by 5.2 percentage points from a 9.2 percent growth in 2012 to a double digit growth of 14.4 percent. RERBA, however, suffered a reversal from a 6.1 percent growth in 2012 to a negative 3.6 percent in 2013. The growth of the RERBA did not offset the slump in the Ownership of Dwellings brought about by Typhoon Yolanda in the last quarter of 2013 that eradicated about 230 thousand houses in the region.
 
AHFF sank deeper to negative 3.3 percent brought about by the hefty decrease in sugarcane and palay production. Agriculture and Forestry suffered a reversal in growth from 0.7 percent in 2012 to negative 3.1 percent in 2013. Likewise, Fishing further sank from negative 2.6 percent to negative 4.0 percent
 
Industry managed to grow at a slower pace from a growth of 21.2 percent in 2012 to 9.4 percent in 2013. Manufacturing and Construction sustained their double digit growths but slower than their recorded growths a year ago. Manufacturing and Construction, the biggest contributors to the sector, grew by 10.8 percent and 12.9 percent, respectively. EGWS decelerated from 9.8 percent to 4.5 percent. Mining and Quarrying suffered a reversal from a 4.2 percent growth in 2012 to negative 5.1 percent in 2013 due to the slower growth of coal.
 
The Service Sector was the largest contributor to the region’s growth contributing 3.3 percentage points. Industry contributed 1.7 percentage points while AHFF pulled down the economic performance of Western Visayas by 0.8 percentage points. 
 
Central Visayas sustains high growth despite calamities
 
The economy of Central Visayas sustained a high growth of 7.4 percent in 2013, notwithstanding the effects of the earthquake in Bohol and Typhoon Yolanda in the last quarter of 2013. This was a deceleration, however, from the 9.4 percent growth recorded in the previous year brought about by slower growths in Industry and Service sectors. 
 
Services comprised more than half of the region’s GDP at 55.6 percent, followed by Industry at 37.7 percent and AHFF at 6.8 percent
 
The Service sector decelerated from 9.1 percent growth in 2012 to 6.9 percent in 2013. All subsectors registered decelerated growths, except for Financial Intermediation which accelerated from 9.1 percent in 2012 to 13.7 percent in 2013. Trade and Repair, the biggest contributor to the sector’s output, posted a slower growth of 5.1 percent, from 12.1 percent in 2012. Other Services and RERBA grew by 5.2 percent and 6.9 percent, respectively, due to the strong performance of tourism and business process outsourcing industries in the region. In addition, typhoon Yolanda resulted to increased visitor arrivals in Metro Cebu, including international relief workers, who made the city their operations center and the jump off point to disaster stricken areas in the Visayas. 
 
The Industry sector slowed down from a 12.0 percent growth in 2012 to 9.7 percent in 2013. Mining and Quarrying, Construction, and EGWS posted decelerated growths of 5.0 percent, 2.1 percent, and 4.3 percent, respectively. On the other hand, Manufacturing, the biggest contributor among the subsectors, posted a faster growth of 14.0 percent in 2013 from 6.3 percent in 2012. 
The AHFF sector posted a growth of 0.3 percent in 2013 from a 0.6 percent contraction in the previous year. Agriculture and Forestry recovered slightly from a 0.4 percent contraction in 2012 to a 0.9 percent growth in 2013. 
 
The Service sector was the biggest contributor to the region’s GDP growth at 3.9 percentage points, followed by Industry at 3.6 percentage points and AHFF with a contribution of less than 0.1 percentage point.
 
Eastern Visayas economy rebounds, brushes off effects of Typhoon Yolanda 
 
The economy of Eastern Visayas rebounded from a 6.4 percent contraction in 2012 to a 5.7 percent growth in 2013 despite Typhoon Yolanda which hit the region in November 2013. The growth was largely due to the acceleration in Manufacturing subsector which recovered from previous year’s contraction.
 
The Industry sector accounted for the biggest share of the region’s economy at 41.1 percent, followed by Services at 38.9 percent. AHFF shared the smallest at 20.0 percent.
 
The Industry sector made a turnaround from an 18.8 percent contraction in 2012 to a 14.1 percent growth in 2013. This was attributed to the accelerated growth in Manufacturing, the biggest contributor among the subsectors, which rebounded from a 40.4 percent slump in 2012 to a 33.5 percent growth in 2013 due to the strong performance of manufacturing of basic metals, a major export product of the region. Construction posted a slower growth of 9.2 percent in 2013, from a 29.0 percent growth in the previous year. On the other hand, EGWS and Mining and Quarrying posted declines of 6.5 percent and 22.8 percent, respectively.
 
Services decelerated from 7.3 percent in 2012 to 4.5 percent in 2013. Financial Intermediation posted an accelerated growth of 14.6 percent in 2013, from 13.5 percent in 2012 on account of the strong performance of banks, non-banks and insurance. Other Services also recorded a growth of 10.3 percent in 2013 – higher than its 4.2 percent growth in the previous year. Meanwhile, TSC, and, Trade and Repair registered slower growths of 7.6 percent and 6.2 percent, respectively. On the other hand, RERBA dropped by 18.4 percent mainly due to the decline in the number of dwelling units that were damaged by Typhoon Yolanda. 
 
AHFF further declined from negative 3.0 percent in 2012 to negative 6.6 percent in 2013. Agriculture and Forestry sank deeper to negative 4.5 percent in 2013, from negative 2.0 percent in 2012. This was due to decreases in production of major crops such as palay, coconut, sugarcane and abaca. There were also declines in livestock and poultry production particularly, hog and chicken. Fishing further slipped from negative 6.3 percent in 2012 to negative 13.3 percent in 2013 due to the decline in fishery production.
 
The Industry sector was the biggest contributor to the region’s growth at 5.4 percentage points. Services contributed 1.8 percentage points. AHFF, on the other hand, pulled down the growth by 1.5 percentage points. 
 
Zamboanga Peninsula’s economy decelerates as Industry and Service sectors slow down
 
Zamboanga Peninsula’s economy decelerated from 12.9 percent in 2012 to 4.3 percent in 2013. This was brought about by the slower growths of the Industry and Service sectors.
 
The Service sector remained the largest contributor to the region’s economy as its share increased from 43.0 percent in 2012 to 43.7 percent in 2013. Meanwhile, the contributions of Industry and AHFF to the total domestic output were 34.6 percent and 21.7 percent, respectively. 
 
The growth of the Service sector decelerated from 9.6 percent in 2012 to 6.1 percent in 2013. This was largely due to the slowdown in TSC, Trade and Repair, and RERBA. TSC decelerated from 8.2 percent in 2012 to 2.4 percent in 2013. Trade and Repair slowed down from 10.5 percent in 2012 to 2.1 percent in 2013 as both wholesale and retail trade showed deceleration. RERBA, likewise, posted a downturn from 17.3 percent in 2012 to 4.0 percent in 2013. On the other hand, Financial Intermediation posted an accelerated growth of 14.2 percent in 2013 from 11.7 percent in 2012 due to the increased outputs of banks and non-banks. PAD grew from 5.2 percent in 2012 to 5.8 percent in 2013. Other Services also accelerated from 7.1 percent in 2012 to 10.6 percent in 2013..
 
The Industry sector decelerated from 31.2 percent in 2012 to 4.3 percent in 2013. Manufacturing, which accounted for 26.2 percent of the region’s total economy, suffered a reversal in growth from 35.2 percent in 2012 to negative 0.1 percent in 2013 due to the decrease in food production. Likewise, Mining and Quarrying contracted by 3.9 percent in 2013, from a 0.6 percent growth in 2012 due to the decline in gold production. Meanwhile, EGWS registered a decelerated growth of 2.9 percent in 2013 from 4.0 percent in 2012. On the other hand, Construction accelerated from 26.1 percent in 2012 to 29.1 percent in 2013. 
 
Growth in AHFF rebounded from negative 2.6 percent in 2012 to 0.7 percent in 2013. Agriculture and Forestry accelerated from 0.1 percent in 2012 to 2.4 percent in 2013. Fishing, on the other hand, improved from negative 7.3 percent in 2012 to negative 2.4 percent in 2013.
 
Services contributed the largest to Zamboanga Peninsula’s economic performance in 2013 with 2.6 percentage points share to the 4.3 percent growth. Industry accounted for 1.5 percentage points, while AHFF contributed a meager 0.2 percentage point to the region’s total economic growth.
 
Northern Mindanao’s economy grows at a slower pace as Services and Industry decelerate
 
Northern Mindanao’s economy slowed down from 7.2 percent in 2012 to 5.6 percent in 2013. This was attributed to the decelerated growth in the Industry and Service sectors.
 
Services remained to have the largest share in the region’s economy at 41.9 percent. Meanwhile, Industry and AHFF had a share of 33.8 percent and 24.3 percent, respectively.
 
Services grew at a slower pace in 2013 at 5.9 percent as compared to its 8.8 percent growth in the previous year. All the subsectors in Services, except Financial Intermediation and Other Services, posted decelerated growths. Financial Intermediation grew faster from 9.0 percent to 10.8 percent. Likewise, Other Services expanded from 4.3 percent growth to 7.8 percent. RERBA, on the other hand, slowed down from 8.2 percent to 7.6 percent. TSC and PAD also slackened from 10.5 percent to 6.0 percent and from 6.7 percent to 4.7 percent, respectively. Trade and Repair decelerated from 11.1 percent in 2012 to 3.3 percent in 2013. 
 
Industry slowed down from 8.9 percent in 2012 to 7.0 percent in 2013. The deceleration was attributed to the lower growth rates in all its subsectors in 2013 as compared to 2012. Manufacturing decelerated from 10.8 percent to 9.3 percent while Construction and Mining and Quarrying slowed down from 8.7 percent and 9.5 percent to 5.7 percent and 3.2 percent, respectively. EGWS showed a lethargic growth of 1.2 percent in 2013.
 
Unlike the other two major sectors, AHFF experienced an acceleration with a growth of 3.2 percent in 2013 from the previous year’s 2.5 percent. Fishing pulled up the performance of AHFF as it grew from 4.7 percent to 13.0 percent. On the other hand, Agriculture and Forestry decelerated from 2.2 percent in 2012 to 1.9 percent in 2013.
 
The Service sector provided the biggest contribution to the region’s economic growth at 2.4 percentage points, followed by the Industry sector and AHFF contributing 2.3 and 0.8 percentage points, respectively.
 
Davao Region’s economy remains resilient despite decline in agriculture
 
The economy of Davao Region managed to grow despite the downturn in agriculture. The region’s economic growth rate decelerated from 7.4 percent in 2012 to 6.8 percent in 2013, on account of the accelerated growth in Industry. 
 
The Service sector remained as the largest contributor to the region’s total output with 52.8 percent in 2013. The share of Industry and AHFF were 31.7 percent and 15.5 percent, respectively.
 
The Service sector slowed down from 8.8 percent in 2012 to 6.6 percent in 2013. TSC registered the biggest deceleration from 8.2 percent in 2012 to 3.4 percent in 2013. Decelerated growths were likewise recorded in Trade and Repair from 10.0 percent in 2012 to 5.0 percent in 2013, and PAD from 6.6 percent in 2012 to 5.1 percent in 2013. Financial Intermediation recorded faster growth from 12.1 percent in 2012 to 13.5 percent in 2013, while RERBA accelerated from 8.5 percent in 2012 to 10.3 percent in 2013. Other Services also increased from 6.1 percent in 2012 to 6.8 percent in 2013.
 
The Industry sector registered a faster growth from 9.5 percent in 2012 to 16.2 percent in 2013. Manufacturing, the second largest subsector in the region, continued to grow as it accelerated from 14.0 percent in 2012 to 14.8 percent in 2013. Construction also accelerated from 15.7 percent in 2012 to 18.9 percent in 2013, while EGWS surged from 6.5 percent in 2012 to 16.4 percent in 2013. Mining and Quarrying rebounded from negative 59.8 percent in 2012 to a growth of 17.9 percent in 2013. 
 
AHFF suffered a reversal from a 0.4 percent growth in 2012 to negative 8.0 percent in 2013. Fishing, on the other hand, decelerated from 6.5 percent in 2012 to 2.7 percent in 2013.
 
The Industry sector contributed the most to the region’s growth in 2013 with 4.7 percentage points, while Services added 3.5 percentage points. AHFF pulled down the growth by 1.4 percentage points.
 
Services and Industry sectors boost SOCCSKSARGEN’s economy
 
The regional economy of SOCCSKSARGEN continued to grow at a faster rate from 8.0 percent in 2012 to 8.4 percent in 2013. This was largely attributed to the accelerated growths posted by the Industry and Service sectors. 
 
The Service sector remained to account for the largest share of the regional economy at 37.6 percent in 2013, slightly higher than its 37.3 percent share in 2012. The share of the Industry sector also expanded from 32.8 percent in 2012 to 33.8 percent in 2013. AHFF contributed 28.6 percent of the region’s total economic output in 2013, lower than its 29.9 percent share in 2012. 
 
The Service sector grew from 8.1 percent in 2012 to 9.4 percent in 2013 as all of its subsectors expanded. Financial Intermediation accelerated from 12.6 percent in 2012 to 13.1 percent in 2013. Trade and Repair grew from 9.0 percent in 2012 to 12.2 percent in 2013. Other Services also grew from 5.8 percent in 2012 to 10.8 percent in 2013. TSC managed to sustain its growth of 5.5 percent in 2012 by posting a 5.7 percent growth in 2013. RERBA also expanded, though at a slower pace, from 11.6 percent in 2012 to 7.5 percent in 2013. PAD slowed down from 7.0 percent in 2012 to 5.3 percent in 2013. 
 
The Industry sector further expanded from 10.3 percent to 11.6 percent in 2013 as two of its subsectors posted faster growths in 2013. Construction accelerated from 6.4 percent in 2012 to 17.1 percent in 2013 while EGWS grew from 5.0 percent in 2012 to 12.6 percent in 2013. On the other hand, Manufacturing, which accounted for the bulk of the Industry sector, slowed down from 12.0 percent in 2012 to 10.1 percent in 2013 and Mining and Quarrying decelerated from 12.1 percent in 2012 to 4.4 percent in 2013.
 
AHFF grew at slower rate from 5.4 percent in 2012 to 3.5 percent in 2013 due to the slump in Fishing. Fishing declined from 16.8 percent in 2012 to negative 0.3 percent in 2013 due to the imposition of partial fishing ban in the Western Pacific Ocean in July to October 2013. Meanwhile, Agriculture and Forestry expanded from 3.2 percent in 2012 to 4.3 percent in 2013. 
 
The Service sector was the top contributor to the regional economic growth in 2013 at 3.0 percentage points followed by the Industry sector which chipped in 2.6 percentage points. AHFF contributed 2.4 percentage points to the total GRDP growth in 2013.
 
Caraga’s economy decelerates as Industry and Services slow down
 
The economy of Caraga decelerated from 10.7 percent in 2012 to 7.8 percent in 2013. The deceleration in the region’s economic performance was largely attributed to the slower growth of Industry and Service sectors.
 
The Service sector constituted the biggest share to the region’s economy at 44.8 percent in 2013. It was followed by the Industry sector which accounted for 34.4 percent, while AHFF contributed 20.8 percent.
 
The Service sector posted a slower growth from 9.5 percent in 2012 to 7.3 percent in 2013 as all its subsectors, except Financial Intermediation, posted decelerated growths. TSC decelerated from 15.6 percent in 2012 to 11.4 percent in 2013, while Trade and Repair decelerated from 8.7 percent in 2012 to 5.9 percent in 2013. Decelerated growths were likewise recorded in RERBA from 10.5 percent in 2012 to 6.4 percent in 2013 and in PAD from 7.2 percent in 2012 to 6.5 percent in 2013. On the other hand, Financial Intermediation accelerated from 11.4 percent in 2012 to 12.0 percent in 2013. 
 
Industry decelerated from 18.2 percent in 2012 to 8.5 percent in 2013. Mining and Quarrying, the largest contributor of the region’s economy, slowed down from 20.5 percent in 2012 to 8.8 percent in 2013 due to the slower growth in metallic mineral production. Construction, likewise, posted a decelerated growth from 21.6 percent in 2012 to 8.4 percent in 2013. In contrast, EGWS surged from 5.0 percent in 2012 to 26.2 percent the following year. Meanwhile, Manufacturing suffered a reversal from a 4.4 percent growth in 2012 to a 2.2 percent contraction in 2013.
 
AHFF grew faster from 2.4 percent in 2012 to 7.7 percent in 2013 due to the increases in palay, corn and poultry production in the region. Fishing sector sank deeper from negative 3.8 percent in 2012 to negative 6.1 percent in 2013.
 
The Service sector contributed most to the region’s economic growth in 2013 with 3.3 percentage points, while the Industry sector chipped in 2.9 percentage points. The AHFF sector managed to contribute 1.6 percentage points to the total economic growth of the region.
 
AHFF and Services buoy up ARMM’s economic performance 
 
ARMM’s regional economy expanded from 1.1 percent in 2012 to 3.6 percent in 2013 due to the accelerated growth of the Service sector and the rebound of AHFF. 
 
AHFF remained the biggest contributor to the region’s economy accounting for 61.3 percent of the region’s total domestic output in 2013, followed by Services which accounted for 33.6 percent. The Industry sector contributed the smallest share at 5.1 percent in 2013. 
 
AHFF rebounded from negative 1.1 percent in 2012 to 2.5 percent in 2013. Agriculture and Forestry posted a growth of 2.5 percent while Fishing recovered from a contraction of negative 4.6 percent in 2012 to a 2.4 percent growth in 2013. The higher growth of Agriculture was attributed to the increased production of major crops like palay, coconut, cassava and other crops while the rebound of Fishery was due to the increased production of tilapia, milkfish, tiger prawn, skipjack and yellow fin tuna.
 
The Service sector accelerated to 6.6 percent in 2013 from 5.9 percent in 2012 as three of its subsectors posted faster growths. Financial Intermediation grew from 10.7 percent to 18.5 percent while Trade and Repair expanded from 4.0 percent to 5.7 percent. PAD also grew from 5.5 percent in 2012 to 5.9 percent in 2013. On the other hand, TSC decelerated from 8.4 percent to 7.9 percent while Other Services posted slower growths from 6.7 percent in 2012 to 6.2 percent in 2013. RERBA managed to maintain its growth of 3.6 percent.
 
The Industry sector posted a decline by 2.1 percent in 2013 from a growth of 0.4 percent in 2012. The reversal in the performance of EGWS from 0.7 percent in 2012 to negative 6.2 percent in 2013 pulled down the overall growth of the Industry sector. Accelerated growths were observed in Mining and Quarrying as it grew from 2.3 percent to 2.6 percent, Manufacturing from 3.0 percent to 3.9 percent. Meanwhile, Construction rebounded from negative 3.1 percent in 2012 to 1.2 percent in 2013. 
 
The Service sector and AHFF contributed 2.2 and 1.5 percentage points, respectively, to the region’s economic growth in 2013. The Industry sector pulled down the region’s growth by 0.1 percentage point.
 
Economic Performance by Industry
 
AHFF posts slower growth
 
The AHFF sector decelerated from 2.8 percent in 2012 to 1.1 percent in 2013. Its share to the total GDP remained the smallest at 10.4 percent, lower than its 11.1 percent share in 2012. 
 
Ten regions recorded decelerations in 2013, three of which plunged deeper from their negative growths in 2012. Seven regions posted faster growths in 2013, three of which recovered from contractions in the previous year.
 
The AHFF sector of Davao Region posted the largest contraction as it declined from a 0.4 percent growth in 2012 to negative 8.0 percent in 2013. Eastern Visayas sunk deeper from negative 3.0 percent in 2012 to negative 6.6 percent in 2013; Western Visayas further contracted from negative 0.1 percent to negative 3.3 percent and MIMAROPA from negative 0.3 percent to negative 3.0 percent. Meanwhile, NCR suffered a reversal from a growth of 10.8 percent in 2012 to negative 4.9 percent in 2013. CAR, Ilocos, Cagayan Valley, Central Luzon, and SOCCSKSARGEN posted decelerated growths at 1.3, 2.1, 0.1, 5.4, and 3.5 percent, respectively in 2013. Caraga accelerated from 2.4 percent in 2012 to 7.7 percent in 2013. Central Visayas recovered from negative 0.6 percent to 0.3 percent, Zamboanga Peninsula from negative 2.6 percent to 0.7 percent and ARMM from negative 1.1 percent in 2012 to 2.5 percent in 2013.
 
Central Luzon, CALABARZON and Western Visayas remained the top three regions with the largest shares to the total AHFF output in 2013 with 14.6, 10.2, and 9.0 percent, respectively.
 
AHFF contribution to the total GDP growth was only 0.1 percentage point, even lower than its contribution of 0.3 percentage point in 2012.
 
Growth Rates of Regional Economies 
in Agriculture, Hunting, Forestry and Fishing
2011-2013, at Constant 2000 Prices
 
 
 
Industry sector sustains momentum 
 
The Industry sector continued to expand as it grew from 7.3 percent in 2012 to 9.3 percent in 2013. The accelerated growth in Manufacturing, which accounted a substantial share of the Industry sector, mostly contributed to the faster overall growth of the Industry sector in 2013. 
 
The share of the industry sector to total GDP inched up from 32.2 percent in 2012 to 32.8 percent in 2013.
 
The Industry sector posted accelerated growths in seven regions while 10 regions posted decelerations. NCR accelerated fastest among the 17 regions, from 7.7 percent in 2012 to 19.7 percent in 2013. Cagayan Valley closely followed from 11.5 percent to 18.5 percent. On the other hand, Eastern Visayas posted the highest rebound from negative 18.8 percent in 2012 to 14.1 percent in 2013. 
 
The CALABARZON region continued to account for the largest share of the country’s total Industry output at 32.3 percent in 2013. This was followed by NCR with 21.3 percent and Central Luzon with 11.2 percent. ARMM remained to be the least contributor to the Industry sector at 0.1 percent.
 
NCR was the top contributor to the growth of the Industry sector in 2013 at 3.8 percentage points followed by CALABARZON at 2.1 percentage points. 
 
Industry contributed 3.0 percentage points to the GDP growth in 2013 - higher than its contribution of 2.3 percentage points.in 2012.
 
Growth Rates of Regional Economies in the Industry Sector:
2011-2013, at Constant 2000 Prices
 
 
Services sustains performance 
 
The Service sector remained the major contributor to the country’s economy. The sector managed to maintain its share of 56.8 percent to the domestic economy from 56.7 percent in 2012. The sector grew by 7.2 percent in 2013, slightly slower than its 7.4 percent growth in 2012.
 
Of the 17 regions in the country, eight recorded decelerated growths in the Service sector in 2013, seven posted accelerations and two maintained their 2012 performances. Bicol Region posted the fastest growth at 11.0 percent, followed by CAR with 9.6 percent and Cagayan Valley and SOCCSKSARGEN Region, both with 9.4 percent.
 
NCR accounted for more than half of the output of the Service sector at 51.5 percent. CALABARZON ranked far second with a 10.0 percent share, followed by Central Luzon at 6.7 percent. On the other hand, ARMM had the smallest share at 0.4 percent in 2013. 
 
The NCR remained the top contributor to the overall growth of the Service sector, providing 3.5 percentage points of the sector’s 7.2 percent growth in 2013. All the other regions contributed less than 1.0 percentage point to the total growth of the Service sector with ARMM recording less than 0.1 percentage point. 
 
The Service sector contributed 4.1 percentage points to the 7.2 percent GDP growth rate in 2013, the biggest among the three sectors.
 
Growth Rates of Regional Economies in the Services Sector:
2011-2013, at Constant 2000 Prices
 
 
Per Capita GRDP 
 
Real per capita GRDP of NCR nearly three times the national per capita GDP
 
The average real per capita GDP of the Philippines increased by 5.3 percent or from PhP65,404 in 2012 to PhP68,897 in 2013.
 
In 2013, NCR posted the highest per capita GRDP at PhP195,806, nearly three times the national average and is 10.5 percent higher than its per capita GRDP in 2012. Aside from NCR, two other regions, CALABARZON and CAR likewise had per capita GRDP higher than the national average at PhP84,657 and PhP76,284, respectively. Meanwhile, ARMM had the lowest per capita GRDP among the regions at PhP14,566.
 
Among the island groups, Luzon (excluding NCR) recorded the highest per capita GDP. The average per capita GDP in the Luzon island group was PhP57,428 in 2013, up by 4.0 percent from PhP55,208 in 2012. Meanwhile, the Visayas island group posted the biggest increase in per capita GDP between 2012 and 2013 - from PhP42,891 in 2012, its average per capita GDP increased by 4.6 percent to PhP44,972 in 2013. Per capita GDP in the Mindanao island group increased by 4.5 percent from PhP39,671 to PhP41,450. 
 
All 17 regions of the country registered higher per capita GRDP with Bicol recording the highest increase at 7.9 percent from PhP22,120 in 2012 to PhP23,873 in 2013. It is followed by NCR at 7.4 percent, Ilocos at 6.6 percent, Caraga at 6.4 percent, and SOCCSKSARGEN at 6.0 percent
 
The NCR posted the highest per capita index relative to the national average at 284.2 with CALABARZON a distant second at 122.9 and CAR, third at 110.7. All 14 other regions have indices lower than the national average with ARMM at the bottom with an index of only 21.1.
 
Economic Performance by Island Group 
 
The economies of Luzon and Mindanao island groups slowed down while that of Visayas accelerated from 2012 to 2013. 
 
Luzon’s economic performance slows down
 
Luzon’s economy (excluding NCR) slowed down from a growth of 6.5 percent in 2012 to 6.1 percent in 2013. 
 
The Luzon island group accounted for 36.8 percent of the country’s total domestic output in 2013, the biggest among the island groups. The share, however, was slightly smaller compared to previous year’s 37.2 percent.
 
In 2013, the Luzon island group contributed 2.3 percentage points to the country’s GDP growth of 7.2 percent, slightly lower than its contribution of 2.4 percentage points in 2012.
 
Visayas’ economy posts faster growth 
 
The economy of the Visayas island group accelerated from 5.6 percent in 2012 to 6.0 percent in 2013. 
 
The share of the Visayas island group to the country’s economy slightly decreased from 12.7 percent in 2012 to 12.6 percent in 2013. 
 
The Visayas island group contributed 0.8 percentage point to the country’s GDP growth in 2013, slightly higher by 0.1 percentage point from its contribution a year ago.
 
Mindanao’s economy decelerates
 
The economy of Mindanao decelerated from 8.1 percent in 2012 to 6.3 percent in 2013. 
 
In terms of contribution to the total national output, the Mindanao island group’s share slightly decreased from 14.4 percent in 2012 to 14.3 percent in 2013.
Mindanao contributed less than one percentage point (0.9 percentage point) to the country’s GDP growth in 2013, much lower than its 1.2 percentage points contribution in 2012.
 
Contribution to GDP Growth by Major Island Group: 
2011-2012 and 2012-13, at Constant 2000 Prices
 
 
Percentage Share to Total GDP by Major Island Group:
2011-2012 and 2012-2013, at Constant 2000 Prices
 
 
 
Inflation
 
ARMM registers highest inflation 
 
The ARMM registered the highest inflation rate year-on-year among regions of the country at 4.6 percent in 2013. It is followed by Cagayan Valley with 4.19 percent Inflation rate and Eastern Visayas with 4.0 percent
 
Among the 17 regions, ARMM also recorded the highest Implicit Price Index (IPIN) for the last three years reaching 203.3 index points in 2013. On the other hand, Caraga registered the lowest IPIN at 156.2 index points in 2013.
 
 
 
 
 

 

Gross Regional Domestic Product by Year Published

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