Philippine economy grows by 6.2 percent in 2018

The Philippine economy grew by 6.2 percent in 2018. This was slower than the 6.7 percent growth recorded in 2017. Manufacturing; Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods; and Construction were the main drivers of growth for the year.

Among the major industries, Services recorded the fastest growth of 6.8 percent. This was followed by Industry with 6.7 percent; and Agriculture, Hunting, Forestry and Fishing (AHFF) with 0.9 percent.

Among the sub-industries, five (5) posted faster growth in 2018: Public Administration and Defense; Compulsory Social Security grew by 15.2 percent; Construction, 14.9 percent; Other Services, 7.7 percent; Electricity, Gas and Water Supply, 5.5 percent; and Transport, Storage and Communication, 5.4 percent.

On the other hand, the following sub-industries posted slower growth: Financial Intermediation, 7.2 percent; Trade, 6.0 percent; Manufacturing, 4.9 percent; Real Estate, Renting and Business Activities, 4.7 percent; Mining and Quarrying, 1.3 percent; Agriculture and Forestry, 1.1 percent. Fishing declined by 0.2 percent.

In terms of the share to the country’s total Gross Domestic Product, Services accounted for 57.8 percent of the total GDP. Industry recorded a share of 34.1 percent while AHFF comprised 8.1 percent of the national economy.

All regional economies grow in 2018

The economies of all seventeen regions grew in 2018 with Bicol Region growing the fastest at 8.9 percent followed by Davao Region and MIMAROPA, with 8.6 percent.

Aside from Bicol Region and MIMAROPA, regions with accelerated growth were: Central Visayas, 7.6 percent; CALABARZON, 7.3 percent; Northern Mindanao, 7.0 percent; Ilocos Region, 6.5 percent; Zamboanga Peninsula, 6.3 percent; and Eastern Visayas, 5.9 percent.

Despite being among the fastest growing economies in 2018, the growth of Davao Region slowed down. The following regions’ economies also grew, but at a slower pace as compared with the previous year: Cordillera Administrative Region (CAR) grew by 7.3 percent; Autonomous Region in Muslim Mindanao (ARMM), 7.2 percent; Central Luzon, 7.1 percent; SOCCSKSARGEN, 6.9 percent; Western Visayas, 6.1 percent; National Capital Region (NCR), 4.8 percent; Cagayan Valley, 3.3 percent; and Caraga, 3.2 percent.

Figure 1. Growth Rates of Regional Economies: 2016-2017 and 2017-2018
(at Constant 2000 Prices, in percent)

  

NCR continues to account for the largest share of the national economy

NCR continued to account for the largest share of the country’s Gross Domestic Product (GDP) at 36.0 percent. It was followed by CALABARZON with a share of 17.0 percent and Central Luzon with a share of 9.8 percent.

In terms of contribution to the GDP growth rate of 6.2 percent in 2018, NCR contributed the most with 1.8 percentage points, followed by CALABARZON with 1.2 percentage points and Central Luzon with 0.7 percentage point. All other regions contributed positively to the growth of the national economy.

 

Economic Performance of the Regions

NCR’s economy grows at a slower pace in 2018

The economy of NCR grew at a slower pace by 4.8 percent in 2018 as compared with the 6.2 percent growth in the previous year. The main drivers for growth in 2018 were Trade; Public Administration and Defense; Financial Intermediation; and Real Estate, Renting and Business Activities.

Services, which shared 82.8 percent to the total economy of NCR slowed down to 5.8 percent in 2018 from 7.1 percent in 2017. Public Administration and Defense grew faster to 16.1 percent in 2018 from 9.5 percent in 2017 and Transportation, Storage and Communication to 4.7 percent in 2018 from 2.2 percent in 2017. Meanwhile, the following subsectors grew at a slower pace: Trade to 5.7 percent in 2018 from 8.2 percent in 2017; Financial Intermediation to 6.1 percent in 2018 from 7.4 percent in 2017; Real Estate, Renting and Business Activities to 4.0 percent in 2018 from 8.0 percent in 2017; and Other Services to 4.1 percent in 2018 from 4.5 percent in 2017.

Industry, accounting for 17.0 percent of NCR’s economy decelerated to 0.5 percent in 2018 as compared with the 2.0 percent growth in 2017. This was attributed to the decline of Manufacturing by 3.4 percent in 2018.  Manufacturing comprised more than two-thirds of the total Industry Sector. On the other hand, Construction rebounded to 16.9 percent growth in 2018. In 2017, it declined by 16.2 percent.  Electricity, Gas and Water Supply accelerated to 3.5 percent in 2018 from 2.3 percent in 2017.

With just 0.2 percent share to the regional economy, AHFF slowed down to 0.4 percent growth in 2018 from 0.7 percent growth in 2017.

Of the 6.2 percent economic growth in the country, NCR remained the top contributor with 1.8 percentage points while accounting for 36.0 percent of the total GDP.

Cordillera’s economy grows by 7.3 percent in 2018

The economy of CAR grew by 7.3 percent in 2018, slower than the 12.2 percent growth in 2017.

Industry accounted for more than half of the region’s economy with 53.0 percent share, followed by Services with 39.7 percent and AHFF with 7.3 percent. The shares of Industry and Services to the total output of the region increased while the share of AHFF decreased.

Industry grew by 9.2 percent in 2018, slower than the 18.8 percent growth in the previous year. Manufacturing remained as the top contributor to growth as it grew by 9.4 percent, albeit slower than 19.6 percent growth recorded in 2017. Construction also slowed down but managed to grow by 15.7 percent in 2018.  Electricity, Gas and Water Supply likewise decelerated to 4.3 percent growth from 5.7 percent in 2017. On the other hand, Mining and Quarrying declined by 15.0 percent during the period.

Meanwhile, Services accelerated to 7.5 percent in 2018 as compared with the 6.1 percent growth in the previous year. Sub-industries that grew faster include: Public Administration and Defense, 13.2 percent; Other Services, 9.5 percent; and Transportation, Storage and Communication, 6.8 percent.  Meanwhile, the rest of the sub-industries also grew but at a slower rate as compared with the previous year: Real Estate, Renting and Business Activities, 4.5 percent; Trade, 5.8 percent; and Financial Intermediation, 7.6 percent.

AHFF contracted by 5.3 percent as compared with the 5.1 percent growth in 2017. The contraction was mainly due to the decline in Agriculture and Forestry by 5.5 percent.

Industry contributed the most to the region’s overall growth rate with 4.8 percentage points, followed by Services with 2.9 percentage points. Meanwhile, AHFF pulled down the growth by 0.4 percentage point.

Ilocos Region’s economy expands by 6.5 percent in 2018

The economy of Ilocos Region grew by 6.5 percent in 2018, faster than the 5.8 percent growth in the previous year. It was contributed by the acceleration of Services and Industry.

Services grew slightly faster by 6.8 percent in 2018, as compared with the previous year’s growth of 6.7 percent. Among the Services, Public Administration and Defense grew the fastest with 14.2 percent. It was followed by Other Services with 8.5 percent and Financial Intermediation with 8.2 percent.

On the other hand, the following sub-industries grew but at a slower pace: Transportation, Storage and Communication, by 3.7 percent; Trade, by 5.0 percent; and Real Estate, Renting and Business Activities, by 5.1 percent. 

Industry expanded by 11.9 percent in 2018 as all of its sub-industries except Manufacturing grew faster. Construction, remained as the biggest contributor to growth with its 16.2 percent increase as compared with the 11.5 percent growth in 2017. It was followed by Electricity, Gas and Water Supply, which grew by 12.1 percent; and Mining and Quarrying with 8.5 percent growth. Manufacturing, on the other hand, grew at a slower rate of 1.6 percent as compared with the 5.4 percent growth in the previous year. 

Meanwhile, AHFF recorded a 2.3 percent decline in 2018, a downturn from the 2.4 percent growth it posted in 2017. Agriculture and Forestry as well as Fishing both contracted, by 2.1 percent and 3.0 percent, respectively.

Among the three major economic industries, Services continued to account for the largest share of the region’s economy with 52.0 percent. Industry followed with a share of 30.2 percent in 2018. The share of AHFF dwindled to 17.8 percent in 2018 from 19.4 percent in 2017.

Services contributed the biggest share to the region’s overall growth in 2018 with 3.5 percentage points closely followed by Industry with 3.4 percentage points. AHFF pulled down the region’s economic performance by 0.4 percentage point.  

 

Cagayan Valley’s economy grows by 3.3 percent

Cagayan Valley’s economy managed to grow by 3.3 percent in 2018 as compared with the 7.1 percent growth recorded in the previous year. The economic growth of the region was pulled down by the decline in AHFF.

In 2018, Services posted a faster growth of 10.5 percent from the 5.9 percent in 2017. The growth was mostly attributed to the upsurge of Other Services as it grew by 20.7 percent from 7.1 percent in 2017. This was coupled by the speed up in the growth of Public Administration and Defense by 13.3 percent from 6.9 percent in the previous year. The growth in Services is attributed to Financial Intermediation; Trade; and Real Estate, Renting and Business Activities with 8.4 percent, 6.6 percent and 5.3 percent, respectively. Meanwhile, Transportation, Storage and Communication also grew but at a slower rate of 3.7 percent.

Industry slowed down as it grew by 2.2 percent in 2018 as compared with the 13.8 percent expansion in 2017. Among the sub-industries, only Construction expanded during the period with 8.7 percent growth. Mining and Quarrying; Electricity, Gas and Water Supply; and Manufacturing all plummeted in 2018 with the declines of 8.8 percent,3.0 percent, and 0.2 percent, respectively.

AHFF, which spurred the growth in the region’s economy in 2017, caused a setback as it declined by 7.1 percent in 2018. This was due to the contraction in Agriculture and Forestry by 7.2 percent coupled with the decline in Fishing by 5.6 percent.

Among the three major economic industries, Services continued to account for the largest share of the region’s economy in 2018 at 54.6 percent. AHFF followed with a share of 30.3 percent share while Industry had 15.1 percent share of the region’s total economy.

Of the 3.3 percent growth of the region’s economy in 2018, Services contributed 5.4 percentage points while Industry had 0.3 percentage point. On the other hand, AHFF pulled down the region’s growth by 2.4 percentage points.

Central Luzon’s economy grows by 7.1 percent

Central Luzon’s economy grew by 7.1 percent in 2018, albeit slower from its 9.2 percent growth in 2017.  Despite the slower growth as compared with the previous year, Central Luzon remained as the third highest contributor to the country’s economic growth, contributing 0.7 percentage point to the country’s 6.2 percent growth in 2018.

Industry remained to have the largest share with 48.6 percent of the region’s total economy in 2018, while Services and AHFF had shares of 37.6 percent and 13.8 percent, respectively.

Industry grew by 7.6 percent in 2018, slower as compared with the 13.9 percent growth in 2017. Manufacturing, the largest sub-industry in the region, grew at a slower rate of 5.5 percent from 13.3 percent in 2017. Construction slowed down to 18.4 percent from 22.0 percent in the previous year. Meanwhile, Electricity, Gas and Water Supply accelerated to 9.9 percent as compared with the 8.5 percent growth in 2017.  Mining and Quarrying rebounded to a growth of 6.8 percent in 2018 from a contraction of 23.0 percent in 2017.

Services grew faster by 7.8 percent in 2018 from 5.6 percent in 2017, as all of its subsectors sped up, except Real Estate, Renting and Business Activities.  Transportation, Storage and Communication grew by 4.6 percent; Trade, 7.0 percent; Financial Intermediation, 8.5 percent; Public Administration and Defense, 13.7 percent; and Other Services, 11.8 percent. Real Estate, Renting and Business Activities, on the other hand, slowed down to 7.1 percent in 2018 from 7.4 percent in 2017.

AHFF decelerated to 3.7 percent in 2018 from its previous year’s 3.9 percent growth.  Agriculture and Forestry slowed down to 3.1 percent from 4.1 percent in 2017, while Fishing grew at a faster rate of 6.7 percent from 2.9 percent in 2017. 

Industry contributed most to the region’s overall growth rate with 3.7 percentage points followed by Services with 2.9 percentage points and AHFF at 0.5 percentage point.

CALABARZON’s economy accelerates to 7.3 percent in 2018, fastest in six years

The economy of CALABARZON in 2018 recorded its fastest pace at 7.3 percent in the past six (6) years. The acceleration was brought about by the faster growth Industry and Services, as well as the turn-around performance of AHFF.

Among the three (3) major economic industries, Industry continued to account for the largest share at 62.3 percent of the region’s economy; followed by Services with 32.9 percent share. AHFF had the least share of 4.8 percent.

Industry grew at a faster pace with 7.9 percent in 2018, from 7.8 percent in 2017. It was mainly driven by the upswing of the Manufacturing sub-industry to 8.0 percent growth from the 7.4 percent growth in the previous year. Construction also contributed to the upward trend in Industry recording a growth of 9.5 percent, although slower than the 15.6 percent growth in 2017. Electricity, Gas and Water Supply posted a faster growth of 3.9 percent in 2018 from 3.4 percent in 2017. Moreover, Mining and Quarrying accelerated to 3.5 percent in 2018 from 1.0 percent in 2017.

Services expanded by 7.1 percent in 2018 from 6.0 percent in 2017 due to the faster growth recorded in most of its sub-industries. Public Administration and Defense, Compulsory Social Security was the fastest growing sub-industry at 15.5 percent from 8.9 percent in 2017. Other sub-industries which posted acceleration were Other Services which grew by 11.0 percent; Financial Intermediation by 8.8 percent; Trade by 5.8 percent; and Transportation, Storage and Communication by 4.5 percent. On the other hand, Real Estate, Renting and Business Activities grew but at a slower pace of 6.0 percent as compared with the 6.9 percent growth in the previous year.

AHFF rebounded to 0.7 percent in 2018, from a decline of 0.6 percent in 2017. This is attributed to the acceleration in Agriculture and Forestry at 2.7 percent from the 0.8 percent growth recorded in 2017. On the other hand, Fishing further declined by 6.4 percent in 2018 from a decline of 5.4 percent in 2017.

Out of the 7.3 percent growth of the region in 2018, Industry remained the biggest contributor at 4.9 percentage points followed by Services with 2.4 percentage points. AHFF contributed the least with 0.03 percentage point.

MIMAROPA’s economic growth continues to accelerate, fastest since 2010

MIMAROPA’s economy accelerated to an 8.6 percent growth in 2018, from the 5.2 percent growth recorded in 2017. The recorded growth in 2018 is the highest since 2010. The performance of MIMAROPA’s economy in 2018 was attributed to the growth of all industries.

Industry grew fastest in 2018 at 11.2 percent compared with its 1.6 percent growth in 2017. The top contributor to growth was Construction, which grew by 26.1 percent. It was followed by Mining and Quarrying, which rebounded with a 5.7 percent growth from a 5.5 percent decline in the previous year. Likewise, Manufacturing grew at a faster pace at 7.2 percent while Electricity, Gas, and Water Supply grew by 8.6 percent, albeit slower than the 14.8 percent expansion in 2017.

Services accelerated in 2018 with a 9.3 percent growth as compared with the previous year’s 8.7 percent growth. Two (2) of its six (6) sub-industries registered accelerated growths in 2018: Public Administration and Defense with 15.2 percent; and Transportation, Storage and Communication with 7.5 percent. The rest of the sub-industries grew at a slower pace as compared with the previous year: Trade at 6.9 percent; Financial Intermediation, 10.3 percent; and Real Estate, Renting and Business Activities, 2.7 percent. Meanwhile, Other Services maintained its growth at 12.5 percent in 2018.

AHFF also grew but on a slower rate of 2.6 percent as compared with the 3.0 percent growth in 2017. The growth was attributed to the 3.1 percent growth in Agriculture and Forestry coupled with the rebound in Fishing at 0.6 percent growth.

Among the three (3) major economic industries, Services continued to account for the largest share of the region’s economy with 47.8 percent followed by Industry with 33.1 percent and AHFF with 19.1 percent.

Services also had the largest contribution to the 8.6 percent growth of MIMAROPA’s economy with 4.4 percentagepoints followed by Industry with 3.7 percentage points. AHFF contributed the least with 0.5 percentage point.

 

Bicol Region posts fastest economic growth in 2018

The economy of Bicol region grew by 8.9 percent in 2018, faster than the 5.0 percent recorded in 2017. The region also surpassed all other regions nationwide in terms of economic growth. Among the major economic sectors, Industry recorded the fastest growth followed by Services and AHFF.

Services remained to have the largest share to the region’s economy at 57.5 percent followed by Industry at 23.9 percent and AHFF at 18.6 percent.

Services continued to expand as it grew by8.8 percent in 2018 from 6.4 percent growth in the previous year. Other Services and Public Administration and Defense; were the top contributors to growth in Services as both registered double-digit growth of 17.1 percent and 14.0 percent, respectively. Likewise, Financial Intermediation accelerated to 8.6 percent from 7.0 percent. All other sub-industries contributed positively to the growth but at a slower rate as compared with the previous year: Real Estate, Renting and Business Activities, which grew by 3.0 percent; Transportation, Storage and Communication, 3.5 percent; and Trade, 3.5 percent.

Industry expanded at a faster rate of 14.2 percent in 2018 as compared with the 3.5 percent growth in 2017. Construction contributed the most to Industry’s growth with the 21.7 percent growth, as compared with the 4.9 percent growth in the previous year. Likewise, Mining and Quarrying grew faster to 18.8 percent from 5.5 percentin 2017. Manufacturing also sped up to 4.6 percent from 3.4 percent. On the other hand, Electricity, Gas and Water Supply rebounded to 1.9 percent from 0.3 percent slump in the previous year.

AHFF accelerated to 3.2 percent growth in 2018 from 2.6 percent growth in 2017. This was due to the 3.2 percent expansion in Agriculture and Forestry coupled with the 3.3 percent acceleration in Fishing.

Services was the biggest contributor to Bicol Region’s economic performance in 2018 accounting for 5.0 percentage points of the total 8.9 percent growth. Industry and AHFF contributed 3.2 percentage points and 0.7 percentage point,respectively.

Western Visayas’ economy grows by 6.1 percent in 2018

The economy of Western Visayas grew by 6.1 percent in 2018. This was slower as compared with the 8.6 percent growth recorded in the previous year. The economic growth of the region was contributed by Services and Industry but was pulled down by AHFF.

Services, which accounted for 58.1 percent of the economy of Western Visayas, grew by 7.5 percent in 2018. The top contributor to the growth of Services was Trade as it grew by 8.0 percent, faster than the 6.4 percent growth in the previous year.  Among the sub-industries with faster growth in 2018 were: Transportation, Storage and Communication, which grew by 6.8 percent; and Public Administration and Defense with double digit growth rate of 14.7 percent. On the other hand, the rest of the sub-industries grew at a slower pace: Real Estate, Renting and Business Activities, 5.2 percent; and Financial Intermediation, 8.1 percent. Other Services, likewise slowed down to 6.2 percent from 10.4 percent in the previous year.

Industry, accounting for 24.7 percent share to the regional economy, expanded by 8.6 percent in 2018. Construction, the main contributor to Industry’s growth, posted a double-digit growth of 14.3 percent. Manufacturing also accelerated to 4.7 percent from 4.1 percent in 2017.  Meanwhile, Electricity, Gas and Water Supply slowed down to 4.5 percent in 2018 from 21.8 percent in the previous year. On the other hand, Mining and Quarrying suffered a reversal as it declined by 1.5 percent from a double-digit growth of 36.7 percent in the previous year. 

AHFF, which had 17.2 percent share, declined by 1.4 percent in 2018 as compared with the 8.8 percent expansion in 2017. This was attributed to the decline in Agriculture and Forestry by 1.6 percent coupled with the decline in Fishing by 0.6 percent although at a slower rate than the previous year’s decline of 1.8 percent.

Of the 6.1 percent regional economic growth in 2018, Services contributed the most with 4.3 percentage points followed by Industry with 2.1 percentage points. AHFF pulled down the region’s economic growth by 0.3 percentage point.

Central Visayas’ economy grows by 7.6 percent in 2018

Central Visayas’ economy in 2018 accelerated to 7.6 percent, from the 5.2 percent growth in 2017. This was driven by the acceleration in Services and Industry.

Services accelerated to 7.0 percent in 2018, from the growth of 6.5 percent recorded in the previous year. The top contributor to this accelerated growth was Other Services, which grew by 9.0 percent as compared with the 6.6 percent in 2017. Other sub-industries also grew and contributed to the growth of Services:  Trade, 5.6 percent from 5.1 percent; Real Estate, Renting and Business Activities, 5.3 percent from 7.9 percent; Financial Intermediation, 7.0 percent from 7.8 percent; and Transport, Storage and Communication, 5.9 percent from 5.2 percent. Meanwhile, Public Administration and Defense accelerated to a double-digit growth of 15.9 percent growth from the 9.3 percent growth recorded in the previous year.

Industry also accelerated to 9.5 percent in 2018. The drivers of this accelerated growth were Manufacturing and Construction, which grew by 8.3 percent and 14.2 percent, respectively. Electricity, Gas and Water Supply turned around as it grew by 2.8 percent from a contraction of 0.9 percent in the previous year. Meanwhile, Mining and Quarrying further declined by 7.3 percent from a 5.5 percent contraction in 2017.

AHFF inched up by 1.4 percent, a slowdown from the 6.8 percent growth in the previous year. Agriculture and Forestry recorded a slower growth of 1.1 percent as compared with the 9.4 percent expansion in the previous year. On the other hand, Fishing rebounded to a growth of 3.3 percent from a contraction of 8.5 percent in 2017.

Of the 7.6 growth rate of the region’s economy, Services contributed the most with 3.9 percentage points followed by the Industry with 3.6 percentage points; and AHFF at 0.1 percentage point.

Services sustained its largest share on the region’s economy accounting for 56.0 percent in 2018. Industry followed with a share of 38.8 percent while AHFF shared 5.2 percent.

Eastern Visayas’ economy expands by 5.9 percent in 2018

The economy of Eastern Visayas expanded by 5.9 percent in 2018 as compared with the 1.8 percent growth in 2017. The top three (3) industries that contributed to the growth were Construction, by 1.8 percentage points; Other Services, 1.4 percentage points; and Transportation, Storage and Communication by 1.0 percentage point. 

Services accelerated to 10.5 percent in 2018 from 6.2 percent in 2017.  All the sub-industries grew faster: Transportation, Storage and Communication grew by 9.6 percent from 2.3 percent; Trade grew by 7.4 percent from 4.8 percent; Financial Intermediation went up by 10.8 percent from 10.3 percent; and Real Estate, Renting and Business Activities grew by 6.3 percent from 6.2 percent. Public Administration and Defense expanded by 14.2 percent from 7.7 percent and Other Services accelerated to 13.0 percent from 8.4 percent. 

Industry rebounded from 1.8 percent contraction in 2017 to 3.5 percent growth in 2018.  Industries that recovered from contractions were: Mining and Quarrying, which grew by 84.7 percent; Construction, 17.4 percent; and Electricity, Gas and Water Supply, 6.3 percent. Meanwhile, Manufacturing declined by 5.7 percent from its 13.3 percent growth in the previous year.

AHFF declined by 0.5 percent in 2018 from the 0.1 percent growth in 2017. Agriculture and Forestry slowed down to 1.1 percent from the 2.8 percent growth in the previous year. Meanwhile, Fishing continued to decline by 7.4 percent, although at a slower rate than the 10.1 percent contraction in 2017.

Services and Industry shared the bulk of the region’s economy at 44.4 percent and 41.6 percent, respectively.  AHFF had a share of 14.0 percent. 

Among the three (3) major industries, Services contributed most to the region’s overall growth rate at 4.5 percentage points followed by Industry at 1.5 percentage points.  AHFF pulled down the region’s growth by 0.1 percentage point.

 

Zamboanga Peninsula’s economy grows at a faster pace in 2018

Zamboanga Peninsula’s economy posted an accelerated growth of 6.3 percent in 2018 from 2.4 percent in 2017. The faster performance of the regional economy was attributed to the expansion of all industries.

Services accounted for the largest share of the region’s economy at 46.3 percent in 2018 followed by Industry with 36.9 percent and AHFF with 16.8 percent.

Services accelerated to 9.8 percent in 2018 from 6.5 percent in 2017 as five (5) out of six (6) sub-industries grew faster during the period. Trade accelerated to 6.8 percent from 3.9 percent; Financial Intermediation, to 8.3 percent from 7.6 percent; Real Estate, Renting and Business Activities, to 6.1 percent from 1.8 percent; Public Administration and Defense, to 15.2 percent from 8.7 percent; and Other Services, to 15.9 percent from 10.7 percent. On the other hand, Transportation, Storage and Communication grew at a slower pace to 4.0 percent from 4.9 percent.

Industry rebounded in 2018 as it grew by 3.8 percent from a 0.8 percent decline in 2017 on account of the faster growth in Manufacturing. Accounting for 25.1 percent of the region’s total economy, Manufacturing accelerated to 5.2 percent in 2018 from 3.3 percent in 2017. Electricity, Gas and Water Supply grew by 6.2 percent in 2018 from 0.4 percent in 2017. Meanwhile, Construction turned around to 1.9 percent during the period from a decline of 9.6 percent in 2017. On the other hand, Mining and Quarrying contracted by 31.8 percent in 2018.

AHFF recovered as it grew by 2.4 percent in 2018 from a decline of 0.4 percent in 2017. This was due to the recovery of Fishing with its 1.1 percent growth in 2018 from a 9.4 percent decline recorded in the previous year. Meanwhile, Agriculture and Forestry managed to grow by 3.0 percent, slower as compared with the 3.8 percent in 2017.

Of Zamboanga Peninsula’s 6.3 percent economic growth in 2018, Services contributed the most with 4.4 percentage points. This was followed by Industry with 1.5 percentage points and AHFF with 0.4 percentage point.

Northern Mindanao’s economy expands faster in 2018 as Industry and Services accelerate

The economy of Northern Mindanao grew by 7.0 percent in 2018. This expansion was faster than the recorded economic growth of 5.8 percent in 2017. The acceleration was driven by Industry and Services.

Among the three major economic industries, Services remained to have the largest share of the region’s economy with 44.1 percent, followed by Industry with 35.6 percent and AHFF with 20.3 percent.

Services recorded the fastest growth of 8.9 percent in 2018 as all of the sub-industries grew faster during the period. The top contributors to the growth in Services were Trade, which grew by 7.4 percent; and Transportation, Storage and Communication, with a double-digit growth of 12.8 percent. Likewise, Other Services grew at a faster rate of 8.9 percent as compared with the growth of 6.1 percent in 2017. Meanwhile, Financial Intermediation grew by 8.7 percent; and Real Estate, Renting and Business Activities by 5.7 percent. Public Administration and Defense also expanded by a double-digit growth of 12.6 percent as compared with the 6.3 percent growth recorded in the previous year.

Industry likewise accelerated to 8.8 percent. Among its sub-industries, Construction grew the fastest at 16.3 percent, faster than the recorded growth of 2.0 percent in the previous year. Mining and Quarrying also expanded at a faster rate of 14.6 percent. Manufacturing also sped up to 6.6 percent from 5.5 percent growth posted in the previous year. On the other hand, Electricity, Gas and Water Supply managed to grow by 4.4 percent, slower than the 13.8 percent growth in 2017.

AHFF grew at a slower pace of 0.4 percent in 2018, from 4.7 percent growth recorded in the previous year. Agriculture and Forestry posted a decelerated growth of 0.8 percent, from the 5.7 percent growth in the previous year. Fishing declined further by 1.9 percent.

The 7.0 growth rate of Northern Mindanao was contributed mostly by Services with 3.8 percentage points, followed by Industry with 3.1 percentage points. AHFF contributed the least with 0.1 percentage point.

Davao Region’s economy posts 8.6 percent growth in 2018

The economy of Davao Region posted an 8.6 percent growth, the second fastest growth among all regions in 2018. This was, however, slower than the 10.7 percent growth recorded in the previous year. 

Services grew by 8.1 percent in 2018, faster than the 6.9 percent growth in 2017. The top contributor to growth in Services was Trade, which grew by 7.4 percent. Sub-industries with faster growth include: Public Administration and Defense, by 12.9 percent from the 6.5 percent in 2017; Financial Intermediation, by 10.4 percent in 2018 from 6.2 percent in 2017; Other Services, by 8.3 percent in 2018 from 3.8 percent in 2017; and Transport, Storage and Communication, by 8.1 percent in 2018 from 7.2 percent in 2017. Meanwhile, Real Estate, Renting and Business Activities grew slower by 6.4 percent growth in 2018, from the 6.7 percent growth recorded in the previous year.

Industry posted a 10.9 percent growth, a deceleration from the 19.0 percent growth in 2017. All grew at a slower rate, except for Electricity, Gas and Water Supply which accelerated to 18.1 percent in 2018, from 3.8 percent in 2017. Construction, the top contributor to the growth of Industry, grew by 18.1 percent in 2018 as compared with the 37.9 percent expansion in 2017. Mining and Quarrying expanded by 8.3 percent in 2018, slower than the 18.2 percent in the previous year. Manufacturing likewise decelerated to 6.4 percent in 2018, from 11.4 percent in 2017.

AHFF recorded a 2.9 percent growth, faster than the 1.7 percent growth in 2017. The growth of the industry was brought by the Agriculture and Forestry which grew by 3.5 percent, from 2.0 percent in 2017. Fishing, on the other hand, further declined by 7.0 percent, from 3.6 percent contraction in 2017.
 
Services continued to account for the biggest share to the region’s economy at 49.3 percent. Industry followed with a 40.1 percent share; and AHFF with 10.6 percent share.

Of the 8.6 percent economic growth of the region, Industry contributed the most with 4.3 percentage points followed by Services with 4.0 percentage points. AHFF contributed the least with 0.3 percentage point.

SOCCSKSARGEN’s economy posts 6.9 percent growth

The economy of SOCCSKSARGEN grew by 6.9 percent in 2018, slower than the 8.3 percent recorded in 2017 largely due to the deceleration in AHFF.

Services accounted for the largest share of the region’s total economy at 40.8 percent followed by Industry at 37.2 percent. AHFF had the smallest share at 22.0 percent.

Services further accelerated to 8.4 percent in 2018 from 7.8 percent in 2017, driven by the expansions in all of its subsectors. Public Administration and Defense recorded the highest growth in 2018 at 13.6 percent, almost twice its 7.2 percent pace in 2017. Transportation, Storage and Communication grew by 9.0 percent in 2018, faster than the 6.1 percent recorded the previous year. Trade also increased to 8.8 percent in 2018 from 7.9 percent in 2017. Financial Intermediation likewise expanded by 8.3 percent in 2018 from 7.6 percent in 2017. Meanwhile, a slowdown was noted in Other Services, which grew by 8.3 percent in 2018 from 10.6 percent in 2017; and Real Estate, Renting and Business Activities which grew by 4.4 percent in 2018 from 6.5 percent in 2017.

Industry posted a slower growth of 8.0 percent in 2018 from 8.4 percent in 2017. Electricity, Gas and Water Supply rebounded to a 5.0 percent growth in 2018 from a contraction of 7.0 percent in 2017. Construction sustained its momentum as it grew by 13.6 percent in 2018 from 10.2 percent in 2017. Manufacturing, which accounted for the bulk of the total Industry, slowed down from 10.3 percent in 2017 to 6.6 percent in 2018. Mining and Quarrying recorded a growth of 5.6 percent in 2018, slower than the 8.0 percent recorded in 2017.

AHFF decelerated from 8.7 percent in 2017 to 2.5 percent in 2018 due to a reversal in Fishing. Fishing contracted from 11.2 percent in 2017 to 3.9 percent in 2018. Agriculture and Forestry expanded from 8.2 percent in 2017 to 3.8 percent in 2018.

Services contributed the highest to the total regional economic growth in 2018 at 3.4 percentage points. Industry shared 2.9 percentage points while AHFF contributed 0.6 percentage point.

 

Caraga’s economy expands in 2018

Caraga’s economy grew by 3.2 percent in 2018. AHFF as well as Services continued to expand in 2018 while Industry declined.

Services continued to expand in 2018 with 5.7 percent growth. All industries under Services contributed to the increase during the period except for Transportation, Storage and Communication. Meanwhile, Public Administration and Defense posted the highest growth with 14.3 percent followed by Other Services with 13.8 percent; Financial Intermediation with 9.7 percent; Trade with 5.3 percent; and Real Estate, Renting and Business Activities with 3.9 percent. On the other hand, Transportation, Storage and Communication declined by 2.7 percent.

AHFF grew by 3.6 percent in 2018. Both Agriculture and Forestry, and Fishing posted a growth of 4.2 percent and 0.4 percent, respectively.

Industry declined by 0.7 percent in 2018. Mining and Quarrying pulled down the growth of Industry with a contraction of 4.9 percent. On the other hand, Electricity, Gas and Water Supply grew by 6.6 percent; Construction, 4.7 percent; and Manufacturing, 1.0 percent.

Of the 3.2 percent growth of Caraga in 2018, Services contributed 2.8 percentage points while AHFF contributed 0.6 percentage point. On the contrary, Industry pulled down the region’s growth by 0.2 percentage point.

Services remained to account for the largest share in the region’s economy with 51.1 percent. This was followed by Industry with 32.7 percent and AHFF with 16.2 percent.

ARMM’s economy grows by 7.2 percent in 2018

The economy of ARMM grew by 7.2 percent in 2018. This was slower as compared with the 7.5 percent growth recorded in the previous year.

Agriculture, Hunting, Forestry and Fishing (AHFF), which shared 55.6 percent to the region’s economy expanded by 5.8 percent, the fastest recorded growth in AHFF among all regions in 2018. However, this was slower than the 7.7 percent increase posted in 2017. Agriculture and Forestry grew by 5.3 percent, slower than the 8.7 percent growth in the previous year. On the other hand, Fishing accelerated to 7.3 percent in 2018 from the 4.5 percent growth in 2017.

Services, accounting for the 38.5 percent to the ARMM’s economy, grew by 9.4 percent, faster than the 6.7 percent in 2017. This was attributed to the growth of all sub-industries. Public Administration and Defense; Compulsory Social Security recorded the fastest growth at 13.2 percent. Transportation, Storage and Communication and Financial Intermediation expanded by 10.8 percent and 9.7 percent, respectively. On the other hand, slower growth was recorded by Other Services at 10.1 percent; and Trade at 4.3 percent. Real Estate, Renting and Business Activities was stable at 2.0 percent in 2018.

Industry, which shared 5.9 percent to the region’s economy, increased by 7.5 percent in 2018. Construction posted a double-digit growth of 16.4 percent while Manufacturing increased by 9.4 percent. Electricity, Gas and Water Supply grew at slower pace at 2.8 percent. On the other hand, Mining and Quarrying declined by 2.9 percent in 2018.

Services had the highest contribution to the 7.2 percent ARMM’s economic growth in 2018, with 3.5 percentage points. This was followed by AHFF with 3.3 percentage points and Industry at 0.4 percentage point.

 

Economic Performance by Industry

ARMM records fastest growth in AHFF

AHFF managed to grow by 0.9 percent in 2018, however slower than the recorded growth of  4.0 percent in 2017. As compared with other major industries, AHFF’s share to the total GDP remains the smallest at 8.1 percent.

In 2018, ARMM had the fastest growth in AHFF with 5.8 percent followed by Central Luzon and Caraga with 3.7 percent and 3.6 percent growth, respectively.

Five (5) regions accelerated in the growth of AHFF as compared with those posted in 2017: Caraga, grew by 3.6 percent; Bicol Region, 3.2 percent; Davao Region, 2.9 percent. Zamboanga Peninsula and CALABARZON both recovered with a growth of 2.4 percent and 0.7 percent from the previous year’s respective decline of  0.4 percent and 0.6 percent.

On the other hand, AHFF in the following regions has a slower growth as compared with the previous year: Central Luzon, 3.7 percent; MIMAROPA, 2.6 percent; SOCCSKSARGEN, 2.5 percent; Central Visayas, 1.4 percent; Northern Mindanao, 0.4 percent; and NCR, 0.4 percent.

Meanwhile, AHFF of five (5) regions declined: Cagayan Valley, 7.1 percent; CAR, 5.3 percent; Ilocos Region, 2.3 percent; Western Visayas, 1.4 percent; and Eastern Visayas, by 0.5 percent.

Figure 2. Growth Rates of Regional Economies in AHFF:
2016-2017 and 2017-2018 (at Constant 2000 Prices, in Percent)

 

Central Luzon continued to account for the largest share of the country’s AHFF with a 16.8 percent share in 2018. It was followed by CALABARZON with 10.0 percent and Northern Mindanao with 9.4 percent. NCR continued to account for the smallest share to AHFF at 0.7 percent.

Central Luzon was the top contributor to the AHFF growth with 0.6 percentage point. It was followed by ARMM, SOCCSKSARGEN, and Davao Region, with 0.2 percentage point contribution each. On the other hand, Cagayan Valley, Ilocos Region, Western Visayas, CAR, and Eastern Visayas pulled down the growth of AHFF in 2018.

AHFF contributed 0.1 percentage point to the 6.2 percent GDP growth in 2018.

CALABARZON tops Industry contributors to growth

Industry grew by 6.7 percent in 2018, slower than the 7.1 percent growth recorded in 2017.

Among the 17 regions in the country, seven regions recorded accelerated growth. Bicol Region grew by 14.2 percent; Ilocos Region, 11.9 percent; MIMAROPA, 11.2 percent; Central Visayas, 9.5 percent; and Northern Mindanao, 8.8 percent. Meanwhile, Zamboanga Peninsula and Eastern Visayas recovered from a decline with corresponding growth of 3.8 percent and 3.5 percent.

Other regions posting slower growth as compared with the previous year were: Davao Region, 10.9 percent; CAR, 9.2 percent; Western Visayas, 8.6 percent; SOCCSKSARGEN, 8.0 percent; Central Luzon, 7.6 percent; ARMM, 7.5 percent; Cagayan Valley, 2.2 percent; and NCR, 0.5 percent. On the other hand, Caraga declined further by 0.7 percent.

Industry accounted for 34.1 percent of the total economy. Among the regions, CALABARZON continued to account for the largest share of the country’s total Industry at 31.0 percent in 2018. It was followed by NCR with a 17.9 percent share and Central Luzon with a 14.0 percent share.

 

Figure 3. Growth Rates of Regional Economies in Industry:
2016-2017 and 2017-2018 (at Constant 2000 Prices, in Percent)

 

Industry contributed 2.3 percentage points to the 6.2 percent GDP growth in 2018.

In terms of contribution to Industry’s 6.7 percent growth, CALABARZON had the highest contribution in 2018 with 2.4 percentage points. Central Luzon and Central Visayas followed with respective contributions of 1.0 percentage point and 0.7 percentage point.

All regions contribute to the 6.8 percent growth in Services in 2018

Services maintained its 6.8 percent growth in 2018. It accounted for more than half of the country’s total GDP at 57.8 percent.

All 17 regions in the country expanded, 14 of which grew faster. The regions which posted accelerated growth rates were: Cagayan Valley, Eastern Visayas, Zamboanga Peninsula, ARMM, MIMAROPA, Northern Mindanao, Bicol Region, SOCCSKSARGEN, Davao Region, Central Luzon, CAR, CALABARZON, Central Visayas, and Ilocos Region.

Western Visayas, NCR, and Caraga also grew, but at a slower pace. These regions grew by 7.5 percent; 5.8 percent; and 5.7 percent, respectively.

 

Figure 4. Growth Rates of Regional Economies in Services:
2016-2017 and 2017-2018 (at Constant 2000 Prices, in Percent)

 

 

NCR continued to have the largest share to Services at 51.6 percent. CALABARZON ranked second with a 9.7 percent share, and Central Luzon was third with a 6.4 percent share.

NCR had the biggest contribution to the 6.8 percent growth of Services in 2018 with 3.0 percentage points. All the other regions posted less than one percentage point to the growth of Services.

Among the three major industries, Services contributed the most to the 6.2 percent GDP growth in 2018 with 3.9 percentage points. 

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 grew by 4.6 percent in 2018. Bicol Region registered the highest growth in per capita GRDP at 6.8 percent. It was followed by Davao Region at 6.6 percent and MIMAROPA at 6.4 percent.

NCR had the highest per capita GRDP, which was nearly three times the national average. Aside from NCR, CALABARZON and CAR posted real per capita GRDP higher than the national average.

NCR posted the highest per capita index relative to the national average at 294.0 in 2018, followed by CALABARZON at 121.2 and CAR at 101.6. All other regions have indices lower than the national average.

Figure 5. GRDP Per Capita Index with Reference to the National Average
2017 and 2018 (at Constant 2000 Prices)