HIGHLIGHTS

 

Philippine economy posts 6.9 percent growth

Release Date: Thursday, May 4, 2017
The Philippine economy posted a 6.9 percent growth in 2016, from a 6.1 percent growth in 2015 driven by the faster growth of Industry and Services.
 
Industry grew by 8.4 percent in 2016 while Services recorded a 7.4 percent growth. On the other hand, Agriculture, Hunting, Forestry and Fishing (AHFF) declined by 1.3 percent from 0.1 percent in 2015. 
 
The major industries which recorded faster growth in 2016 were: Public Administration and Defense; Compulsory Social Security (PAD) which grew by 7.2 percent; Mining and Quarrying (MAQ), 3.2 percent; Electricity, Gas and Water Supply (EGWS), 9.8 percent; Construction, 13.7 percent; Real Estate, Renting and Business Activities (RERBA), 8.9 percent; Financial Intermediation (FI), 7.6 percent; Manufacturing, 7.0 percent; and Trade, 7.2 percent.
 
Meanwhile, Transportation, Storage and Communication (TCS) and Other Services (OS) posted slower growth of 5.9 percent and 7.3 percent, respectively. Agriculture and Forestry contracted by 0.6 percent while fishing declined further to 4.3 percent.
 
Services accounted for more than half or 57.3 percent of the country’s Gross Domestic Product (GDP). Industry, on the other hand, recorded a share of about one-third or 33.9 percent while AHFF comprised only 8.7 percent of the national economy.
 
 
Eastern Visayas’ economic growth was the fastest in 2016
 
Eastern Visayas’ economy posted the fastest growth among the 17 regions of the country in 2016 - growing by 12.4 percent and exceeding its growth of 4.6 percent in 2015. It was followed by Central Luzon and Davao Region which grew by 9.5 percent and 9.4 percent, respectively. All other regions also expanded in 2016 compared to the previous year. 
 
 
All regions of the Philippines recorded improved economic performance in 2016
 
All seventeen regions posted positive economic growth from 2015 to 2016 with Eastern Visayas’ economy growing the fastest. Ten regions recorded accelerated economies during the year: Eastern Visayas, 12.4 percent; Central Luzon, 9.5 percent; Central Visayas, 8.8 percent; Ilocos Region, 8.4 percent; Northern Mindanao, 7.6 percent; SOCCSKSARGEN, 5.0 percent; Davao Region, 9.4 percent; National Capital Region (NCR), 7.5 percent; MIMAROPA, 2.7 percent; and ARMM, 0.3 percent.   
 
The following regions’ economies also grew, but at a slower pace: Bicol Region, 5.7 percent; Zamboanga Peninsula, 4.7 percent; Western Visayas, 6.1 percent; Caraga, 2.5 percent; Cordillera Administrative Region, 2.1 percent; CALABARZON, 4.8 percent; and Cagayan Valley, 3.3 percent.
 
Figure 1. Growth Rates of Regional Economies: 2014-2015 and 2015-2016
(at Constant 2000 Prices, in Percent)
 
 
 
NCR continues to account for the largest share of the national economy
 
 
NCR continued to have the largest share of the country’s Gross Domestic Product (GDP) at 36.6 percent. It was followed by CALABARZON with a 16.8 percent share and Central Luzon with a 9.5 percent share.
 
In terms of contribution to the GDP growth rate of 6.9 percent in 2016, NCR contributed the most with 2.7 percentage points, followed by Central Luzon with 0.9 percentage point and CALABARZON with 0.8 percentage point. All other regions also contributed positively to the growth.
 
 
 
 
 
 
 
Economic Performance of the Regions
 
 
NCR’s economy grows in 2016 by 7.5 percent
 
NCR’s economy posted a 7.5 percent growth in 2016. This was higher than the 6.7 percent growth in the previous year. 
 
Services had the largest share in the region’s economy, accounting for 
81.4 percent. Industry and AHFF accounted for 18.5 percent and 0.2 percent of the region’s economy, respectively. 
 
Among the major economic sectors, Services had the fastest growth of 8.0 percent, higher than the previous year’s 6.6 percent growth. This was brought about by the growth in RERBA which accelerated to 11.2 percent; PAD which grew faster by 8.1 percent; and Trade and FI which also grew faster by 7.8 percent and 7.6 percent, respectively. On the other hand, TSC slowed down by 5.9 percent and OS by 5.3 percent.
 
Industry slowed down with 5.5 percent growth in 2016, lower than the 6.9 percent growth in the previous year. The deceleration was attributed to the slowdown in Manufacturing and the decline in Construction. Manufacturing posted a 6.5 percent growth which was lower than previous year’s growth of 7.0 percent. On the other hand, Construction contracted by 2.0 percent in 2016. Meanwhile, EGWS posted a 9.5 percent growth in 2016, higher than previous year’s 5.9 percent growth. 
 
AHFF declined by 1.4 percent in 2016 due to the contraction in Fishing at 3.8 percent and Agriculture and Forestry at 1.3 percent.
 
Services was the top contributor to the region’s economic growth, contributing 6.4 percentage points.  On the other hand, Industry contributed 1.0 percentage point.  AHFF contributed the least to the region’s economic growth.
 
 
CAR’s economy posts 2.1 percent growth
 
The economy of CAR posted a growth of 2.1 percent in 2016.  This was a slowdown from the 4.0 percent growth in 2015 due to the decline in AHFF and Industry.
 
Industry accounted for half of the region’s economy at 49.4 percent, followed by Services at 41.7 percent and AHFF at 8.8 percent. The percent share of Services to the total economy of the region increased while the shares of Industry and AHFF decreased.
 
Industry contracted by 0.2 percent in 2016 from 3.5 percent in 2015. This was brought about by the decline in Construction and MAQ by 25.4 percent and 3.5 percent, respectively. Manufacturing, Industry’s biggest contributor, grew but on a slower pace from 4.4 percent in 2015 to 3.8 percent in 2016.  On the other hand, EGWS rebounded to 13.4 percent in 2016 from a decline of 8.6 percent in the previous year.
 
The growth of Services slowed down to 6.5 percent in 2016 from 6.8 percent in 2015.  All subsectors expanded in 2016 with OS recording the fastest growth of 9.6 percent. This was followed by FI with 8.7 percent, Trade with 7.1 percent, TSC and PAD, both with 5.3 percent and RERBA with 3.1 percent.
 
On the other hand, AHFF contracted further by 4.5 percent from an already declining level in 2015. This was due to the decline in Agriculture and Forestry by 4.7 percent
 
Among the three major economic sectors, Services had the largest contribution to the region’s overall growth with 2.6 percentage points. AHFF and Industry pulled down CAR’s growth by 0.4 percentage point and 0.1 percentage point, respectively.
 
 
Economy of Ilocos Region expands by 8.4 percent
 
The economy of Region I expanded by 8.4 percent in 2016. This is higher than the 5.4 percent growth recorded in 2015. The performance of the region’s economy in 2016 was due to the accelerated growth in Industry and Services.
 
Services had the largest share in the region’s economy in 2016 at 51.2 percent while Industry contributed 28.8 percent. Meanwhile, AHFF accounted for 20.1 percent in the region’s economic performance in 2016.
 
Services accelerated from 7.1 percent in 2015 to 8.0 percent in 2016. All of its industries posted faster growths with the exception of TSC: PAD, 6.3 percent; FI, 8.0 percent; OS, 11.2 percent; Trade, 8.0 percent; and RERBA, 7.3 percent. TSC grew at a slower pace from 6.9 percent in 2015 to 5.3 percent in 2016.
 
Industry accelerated from 8.3 percent in 2015 to 17.9 percent in 2016.  This was attributed to Construction, MAQ, and EGWS which grew faster by 43.4 percent,12.0 percent, and 5.5 percent, respectively.  Meanwhile, Manufacturing grew at a slower rate from 3.2 percent in 2015 to 2.6 percent in 2016.
 
On the other hand, AHFF further declined by 1.8 percent in 2016 from a drop of 1.3 percent in 2015. The decline of AHFF was due to the contraction of Agriculture and Forestry by 1.6 percent. Meanwhile, Fishing still recorded a decline of 2.6 percent.
 
Industry contributed the most to the region’s growth in 2016 with 4.7 percentage points while Services contributed 4.1 percentage points.  On the other hand, AHFF pulled down the growth by 0.4 percentage point.     
 
 
Cagayan Valley’s economy grows by 3.3 percent
 
The economy of Cagayan Valley posted a 3.3 percent growth in 2016. The growth was slower compared with the 4.1 percent growth in 2015.
 
Among the three major economic industries, Services continued to account for the largest share of the region’s economy in 2016 with a 51.3 percent share. AHFF recorded a share of more than one-third or 34.2 percent while Industry covered 14.5 percent of the regional economy.
 
Services posted a growth of 5.3 percent albeit slower than the 6.9 percent recorded in 2015. All subsectors except PAD increased but at a slower rate in 2016: OS, 7.0 percent; Trade, 6.2 percent; FI, 5.6 percent; TSC, 4.9 percent; and RERBA, 1.8 percent. PAD grew faster by 5.5 percent as compared to the 1.3 percent expansion in the previous year.
 
Industry sped up the region’s economy with 12.9 percent growth. This was a result of the growth in EGWS at 27.4 percent and Manufacturing at 17.0 percent. Likewise, MAQ rebounded from a contraction of 18.3 percent in 2015 to a growth of 9.3 percent in 2016. Construction also posted expansion but at a slower growth of 9.2 percent.
 
On the other hand, AHFF declined further by 3.0 percent in 2016 due to the contraction in Agriculture and Forestry at 2.9 percent. Fishing also declined by 5.3 percent.
 
Of the overall 3.3 percent growth of the region, Services continued to be the biggest contributor with 2.7 percentage points, followed by Industry with 1.7 percentage points. AHFF pulled down the region’s growth by 1.1 percentage points.
 
 
Manufacturing fuels Central Luzon’s economy which grows by 9.5 percent
 
Central Luzon’s economy grew by 9.5 percent in 2016, the highest growth of the region in the past six (6) years. The region’s expansion contributed 0.9 percentage point to the country’s 6.9 percent growth in 2016. 
 
Industry continued to account for the largest share of the region’s economy at 
46.4 percent.  Meanwhile, Services and AHFF accounted for 38.6 percent and 15.0 percent, respectively, of the region’s economy.
 
Industry grew by 16.0 percent, 8.9 percentage points higher than its previous year’s 7.1 percent growth. Manufacturing and EGWS had respective growths of 17.4 percent; and 26.4 percent. Meanwhile, MAQ rebounded from its 39.2 percent contraction in 2015 to 20.4 percent in 2016.  Construction, on the other hand, slowed down to 4.4 percent from its 13.4 percent growth in 2015. 
 
Services posted a growth of 5.9 percent, as all of its subsectors posted expansions: OS, 8.1 percent; FI, 6.5 percent; Trade, 5.4 percent; and PAD, 5.8 percent. RERBA and TSC likewise expanded although at a decelerating rate of 5.7 percent and 4.8 percent, respectively.
 
Meanwhile, AHFF maintained its 0.6 percent growth in 2016 with Agriculture and Forestry accelerating by 0.9 percent while Fishing further declined by 0.7 percent
 
In terms of contribution, Industry contributed most to the region’s overall growth rate with 7.0 percentage points followed by Services with 2.4 percentage points and AHFF at 0.1 percentage point.
 
 
CALABARZON’s economy grows by 4.8 percent
 
The economy of CALABARZON grew by 4.8 percent in 2016, albeit slower than its 5.8 percent growth in 2015. All the three major sectors posted increases during the period. 
 
Industry sustained its largest share to the region’s economy at 61.4 percent followed by Services with 33.2 percent. AHFF had the least share of 5.5 percent.
 
Industry grew by 3.7 percent in 2016, slower than the 5.7 percent growth in 2015. Manufacturing and Construction slowed down by 3.6 percent and 2.5 percent, respectively, while EGWS grew faster by 7.5 percent. Meanwhile, MAQ declined by 1.8 percent in 2016 as compared with its growth of 17.9 percent in 2015.
 
Services accelerated by 7.2 percent from 6.7 percent in the previous year. This was driven by the expansions in FI, PAD, RERBA, and TSC with growth of 8.3 percent, 7.5 percent, 7.2 percent and 6.3 percent, respectively. The rest of the subsectors also grew but at a slower rate: OS grew by 9.6 percent and Trade by 5.7 percent.
 
AHFF grew by 3.4 percent, faster than its 2.6 percent growth in 2015. Agriculture and Forestry triggered this growth as it grew by 4.7 percent. On the other hand, Fishing remained down but at a lower rate of 0.6 percent
 
Industry and Services both contributed 2.3 percentage points to the region’s overall growth of 4.8 percent. The remaining 0.2 percentage point was contributed by AHFF.
 
 
MIMAROPA’s economy expands by 2.7 percent in 2016
 
The economy of MIMAROPA grew by 2.7 percent in 2016. This was higher than the 2.0 percent growth in 2015.  The performance of MIMAROPA’s economy was attributed to the growth of Services and Industry.
 
Among the major industries, Services posted a growth of 8.0 percent due to the growth of all its subsectors. FI which grew by 9.2 percent and PAD which grew by 7.2 percent posted accelerated growth rates in 2016. On the other hand, RERBA rebounded to a 6.9 percent growth in 2016 from a contraction of 0.3 percent in 2015. OS, Trade, and TSC also expanded but at a slower rate at 9.0 percent,8.2 percent, and 7.1 percent, respectively.
 
Industry rebounded from a contraction of 4.9 percent in 2015 to 2.3 percent in 2016. The upturn in growth was brought about by the growth in all of its industries: EGWS and Manufacturing grew by 15.4 percent and 8.5 percent, respectively. Meanwhile, Construction and MAQ turned around from corresponding contractions of 2.5 percent and 7.3 percent in 2015 to 2.0 percent and 0.5 percent in 2016.  
 
Meanwhile, AHFF declined by 6.8 percent. The reversal in growth was due to the contraction of Agriculture and Forestry by 4.1 percent and Fishing which further declined by 15.1 percent in 2016.
 
Services remained the largest contributor to the growth of MIMAROPA’s economy with 3.5 percentage points.  Industry followed with 0.8 percentage point. Meanwhile, AHFF pulled down the region’s economic performance by 1.5 percentage points.
 
 
Bicol region’s economy expands by 5.7 percent in 2016
 
The economy of Bicol Region expanded by 5.7 percent in 2016. Industry and Services spurred the region’s economy despite having slower growths. 
 
Services remained the largest contributor with 56.7 percent share followed by Industry with 23.2 percent and AHFF at 20.0 percent. The shares of Industry and Services to the total economy improved in 2016 both by 0.6 percentage points. On the other hand, AHFF share to the total economy decreased. 
 
Industry slowed down by 8.4 percent in 2016 as compared with the 25.0 percent expansion in the previous year. Manufacturing boosted Industry with its 12.0 percent growth followed by MAQ which grew by 9.0 percent. Meanwhile, EGWS and Construction slowed down by 9.0 percent and 7.1 percent, respectively, but were the top contributors to the total Industry growth.
 
Services likewise increased in 2016 but at slower growth of 6.9 percent. All industries recorded slower growths with the exception of FI and PAD: TSC, 6.3 percent; Trade, 6.4 percent; RERBA, 1.9 percent; and OS, 9.7 percent. FI and PAD posted growth of 11.0 percent and 6.1 percent, respectively, higher as compared with respective growth of 7.1 percent and 2.6 percent in 2015.
 
On the other hand, AHFF contracted by 0.2 percent in 2016 due to the 4.8 percent decline in Fishing. The decline was meanwhile offset by Agriculture and Forestry which grew by 1.4 percent.
 
In terms of contribution to growth, Services had the biggest contribution to the region’s 5.7 percent economic performance with 3.9 percentage points, followed by Industry which contributed 1.9 percentage points. AHFF pulled down the growth in 2016.
 
 
Economy of Western Visayas continues to grow at 6.1 percent
 
Western Visayas’ economy grew by 6.1 percent in 2016. This was slower as compared with the 8.8 percent growth recorded in the previous year. The slower growth was due to the slowdown of Industry and Service and contraction of AHFF.  
 
Services’ share to the region’s economy remained the largest with 57.3 percent.  Industry and AHFF’s share were 24.2 percent and 18.5 percent, respectively.  Industry’s contribution to the region’s total output increased by 1.2 percentage points while AHFF’s share decreased by   1.5 percentage points.
 
Services grew by 6.7 percent, slower as compared with 7.2 percent in 2015. All of its subsectors posted increases with PAD and FI posting accelerated growths of 6.8 percent and 4.7 percent, respectively. The subsectors which recorded slower growths were: OS, 10.0 percent; TSC, 6.6 percent; Trade, 5.8 percent; and RERBA, 3.7 percent.
 
Industry posted a slower growth of 11.5 percent as compared with its growth of 23.3 percent in 2015. Although increasing, the output of this sector was attributed to the slowdown in Construction and Manufacturing with growths of 11.6 percent and 3.7 percent, respectively. On the contrary, MAQ and EGWS accelerated by 34.5 percent and 23.2 percent in 2016, respectively.
 
On the other hand, AHFF further contracted by 1.9 percent from a contraction of 0.7 percent in 2015. Agriculture and Forestry, which accounted for 79.6 percent share to AHFF, further declined by 1.6 percent. Fishing, on the other hand, posted a contraction of 2.9 percent.  
 
Services contributed the largest to the region’s 6.1 percent economic growth with 3.8 percentage points followed by Industry with 2.7 percentage points. AHFF pulled down the region’s growth by 0.4 percentage point.
 
 
Industry fuels Central Visayas’ economic growth to 8.8 percent
 
The economy of Central Visayas accelerated to 8.8 percent in 2016, higher than the 4.9 percent growth recorded in 2015. The continued growth was attributed to the upsurge in Industry.
 
Services remained to account for the largest share in the region’s economic output with 55.5 percent. Industry followed at 39.1 percent and AHFF at percent.
 
Industry posted a 14.6 percent growth as Construction rebounded to a 40.4 percent growth from a decline of 13.0 percent in 2015. Manufacturing and EGWS likewise accelerated by 5.9 percent and 7.7 percent, respectively. MAQ also increased but at a slower rate of 1.0 percent from its growth of 3.0 percent in the previous year.
 
All subsectors in Services expanded in 2016 and pushed the growth by 5.9 percent. This is, however, slower compared with the 8.7 percent in the previous year. Subsectors with slower growth were: TSC with 5.1 percent; Trade with 4.6 percent; FI with 3.8 percent; and OS with 8.1 percent. On the other hand, PAD accelerated to 7.9 percent while RERBA maintained its pace at 7.1 percent.
 
On the other hand, AHFF contracted by 0.6 percent due to the 1.4 percent decline in Agriculture and Forestry. In contrast, Fishing rebounded by 4.4 percent from a decline of 0.7 percent in 2015.
 
Of the overall 8.8 percent growth of the region, Industry contributed 5.4 percentage points while Services shared 3.4 percentage points. AHFF, however, pulled down the growth by 0.04 percentage point.
 
 
Eastern Visayas posts the fastest economic growth at 12.4 percent in 2016
 
Eastern Visayas posted the fastest economic growth in the country at 12.4 percent in 2016.  This is higher than the 4.6 percent growth recorded in the previous year and the first ever double-digit growth of the region. Fueled by the expansion in Construction and Manufacturing subsectors, the region topped the country in terms of GRDP growth. 
 
Industry accounted for the largest share in the region’s economy at 44.3 percent, followed by Service Sector at 40.6 percent and AHFF at 15.1 percent.  
 
Industry expanded with a faster growth of 20.2 percent as compared with the 4.9 percent in 2015. Construction, which had a 13.5 percent share to the region’s economy, recorded the fastest growth at 44.5 percent. Manufacturing, which accounted for 18.4 percent, rebounded from a 3.0 percent contraction in 2015 to a 19.6 percent growth in 2016. Meanwhile, MAQ and EGWS grew at a slower pace by 3.2 percent and 2.1 percent, respectively.  
 
Services, likewise, posted an accelerated growth of 8.6 percent from 7.9 percent in the previous year. The major contributors to Services were OS and TSC which grew by 11.0 percent and 9.2 percent, respectively. Likewise, FI, RERBA, and PAD posted faster growth of 11.1 percent, 6.1 percent and 6.3 percent, respectively. Trade grew at a slower pace by 5.4 percent in 2016 from 7.2 percent in the previous year.
 
AHFF rebounded from a contraction of 3.5 percent in 2015 to 2.4 percent in 2016. Agriculture and Forestry, which accounted for 11.9 percent to the regional economy, grew by 1.9 percent while Fishing grew by 4.3 percent.  
 
Of the 12.4 percent growth in 2016, Industry contributed the most to the region’s growth at 8.4 percentage points. Services accounted for 3.6 percentage points while AHFF contributed 0.4 percentage point. 
 
 
Zamboanga Peninsula’s economy grows by 4.7 percent in 2016
 
Zamboanga Peninsula’s economy posted a 4.7 percent growth in 2016 from 7.7 percent in 2015. The performance of the regional economy was weighed down by the contraction in AHFF coupled with slower growth in Industry and Services.
 
Services’ share to the regional economy increased to 43.0 percent in 2016 from 42.5 percent in 2015. Meanwhile, the shares of Industry and AHFF were 39.1 percent and 17.9 percent, respectively.
 
Services grew by 6.0 percent in 2016, slower than the 6.3 percent growth in 2015. Three of its industries posted growth at a slower rate: TSC, 4.4 percent, Trade, 3.0 percent, and RERBA, 4.0 percent. Accelerated growth rates were recorded in FI, 9.5 percent, PAD, 7.3 percent, and OS, 9.0 percent.
 
Industry expanded by 8.4 percent in 2016 from 12.7 percent recorded in the previous year. Accounting for 12.6 percent of the region’s total economy, Construction increased by 26.0 percent albeit slower than the previous year’s 50.7 percent expansion. EGWS and Manufacturing likewise slowed down with 2.8 percent and 1.5 percent growth, respectively. On the other hand, MAQ grew by 4.3 percent, a rebound from a contraction of 18.9 percent in 2015.
 
AHFF declined by 5.0 percent due to the contraction in both Agriculture and Forestry, 3.6 percent and Fishing, 8.0 percent.
 
Of Zamboanga Peninsula’s 4.7 percent economic growth, Industry contributed 3.2 percentage points and Services contributed 2.6 percentage points. AHFF pulled down the region’s total economic growth by 1.0 percentage point.
 
 
Northern Mindanao’s economy accelerates to 7.6 percent
 
Northern Mindanao’s economy grew by 7.6 percent in 2016. This was faster than the economic growth of 5.7 percent in 2015. The growth was due to the expansions of the major sectors, namely AHFF, Industry and Services.
 
Services remained to have the largest share of the region’s total economic output at 43.1 percent, followed by Industry at 35.1 percent and AHFF at 21.9 percent. The percent shares of Services and Industry to the total economy of the region increased while AHFF decreased. 
 
Services grew by 8.3 percent, faster than its 7.5 percent growth in the previous year. Trade, which accounted for the biggest share in the total output of Services, expanded at a faster rate of 10.0 percent. FI also accelerated by 10.7 percent and PAD by 4.8 percent. TSC, RERBA, and OS grew at a slower pace of 6.8 percent, 5.0 percent, and 8.9 percent, respectively.
 
Likewise, Industry posted a faster growth of 10.3 percent. All of its industries except EGWS which contracted by 0.5 percent, contributed to this expansion. Manufacturing grew faster by 5.8 percent due to the increase in food and beverage industries. Construction and MAQ showed an upsurge of 29.6 percent and 16.0 percent, respectively.
 
AHFF increased at a slower rate of 2.4 percent. Agriculture and Forestry slowed down by 2.2 percent as compared with its 2.8 percent growth in the previous year. Fishing also decelerated by 3.6 percent.
 
Industry and Services were the top contributors to the economic growth of Northern Mindanao, each contributing 3.5 percentage points. AHFF contributed 0.6 percentage point.
 
 
Davao Region’s economy expands by 9.4 percent in 2016
 
The economy of Davao Region posted an accelerated growth of 9.4 percent in 2016 due to the acceleration of Industry. 
 
Services continued to account for the biggest share of the region’s economic output at 51.1 percent. Industry followed with a 36.7 percent share, and AHFF with a 12.2 percent share. The percentage share of the Industry to the total output of the region increased, while shares of Services and AHFF decreased. 
 
Services sustained its 7.5 percent growth as three of its six industries posted faster growths. The biggest acceleration was observed in FI which grew by 10.2 percent. Trade and PAD grew faster by 7.5 percent and 5.1 percent, respectively. On the other hand, the following industries posted slower growth: TSC, 6.4 percent; RERBA, 6.9 percent; and OS, 7.9 percent.
 
Industry posted a growth of 16.5 percent, faster than the previous year’s 12.2 percent due to the acceleration of EGWS and Construction. EGWS accelerated by 44.5 percent while Construction recorded a higher growth of 25.8 percent. MAQ and Manufacturing also grew but at a slower rate of 15.7 percent and 11.2 percent, respectively.
 
On the other hand, AHFF contracted by 1.3 percent as Agriculture and Forestry declined by 1.3 percent and Fishing contracted by 0.9 percent
 
Industry contributed the most to the region’s economic growth at 5.7 percentage points. Services shared 3.9 percentage points while AHFF pulled down the growth by 0.2 percentage point.   
 
 
Industry buoys SOCCSKSARGEN’s economy by 5.0 percent in 2016 
 
SOCCSKSARGEN’s economy grew by 5.0 percent in 2016, faster than its 3.3 percent growth in 2015. The double-digit acceleration in Industry and the steady performance of Services reversed the effect of the slump in AHFF. 
 
Services accounted for the largest share of the regional economy at 40.3 percent. Industry share expanded to 36.9 percent while AHFF had a share of 22.9 percent.
 
Services grew by 7.4 percent, a slowdown compared with the 7.9 percent recorded in 2015. The industries that posted faster growths were: FI, 9.7 percent; OS, 9.5 percent; and PAD, 5.7 percent. RERBA sustained its growth of 8.4 percent. Meanwhile, Trade and TSC recorded slower growth of 7.0 percent and 4.0 percent, respectively.
 
Industry surged to 13.5 percent in 2016 from 2.6 percent in 2015 propelled by higher growth in all of its industries. Construction grew by 25.8 percent; EGWS by 25.3 percent; Manufacturing by 8.3 percent; and MAQ by 7.2 percent.
 
On the other hand, AHFF declined further to 9.5 percent in 2016 due to a downturn in all of its industries. Agriculture and Forestry contracted by 6.8 percent and Fishing by 20.9 percent.
 
Industry was the top contributor to the regional economic growth at 4.6 percentage points followed by Services with 2.9 percentage points. AHFF pulled down the region’s growth by 2.5 percentage points.
 
 
Caraga’s economy expands in 2016 at 2.5 percent
 
Caraga’s economy grew by 2.5 percent in 2016, slower than the 4.5 percent growth posted in 2015. The main driver for the region’s growth was Services.
 
Services accounted for the largest share in the region’s total economic output with 48.4 percent. Industry followed with 35.1 percent and AHFF with 16.5 percent.
 
Services expanded from 5.5 percent in 2015 to 8.7 percent as all of its industries grew in 2016. FI grew by 14.5 percent; OS by 10.5 percent; Trade by 8.7 percent; TSC by 7.8 percent; PAD by 6.4 percent; and RERBA by 6.2 percent
 
On the other hand, Industry contracted by 3.3 percent in 2016 due to the decline in MAQ which accounted for 20.1 percent of the region’s economy. Manufacturing, EGWS, and Construction posted expansions of 5.9 percent, 5.0 percent, and 4.1 percent, respectively. MAQ declined by 8.5 percent as compared with the 5.0 percent growth in the previous year.
 
Likewise, AHFF contracted by 1.2 percent as Fishing further declined by 3.3 percent. Agriculture and Forestry, likewise, posted a contraction of 0.8 percent but at a slower rate than the previous year’s 9.7 percent decline.
 
Of the 2.5 percent growth of Caraga’s economy in 2016, Services contributed 4.0 percentage points. On the contrary, Industry and AHFF pulled down the growth by 1.2 percentage points and 0.2 percentage point, respectively. 
 
 
ARMM’s economy rebounds in 2016
 
ARMM’s economy rebounded by 0.3 percent in 2016 from a contraction of 0.4 percent in 2015. This was brought about by expansions in both Industry and Services.
 
In terms of share, AHFF remained to have the largest share in the total economy with 56.3 percent. Services followed with 38.0 percent while Industry contributed 5.7 percent.
 
Services grew by 5.2 percent in 2016 from 4.4 percent recorded in the previous year. This was attributed to the faster growth posted by four of its industries: PAD, 5.4 percent; OS, 7.6 percent; Trade, 8.0 percent; and RERBA, 2.1 percent. FI and TSC likewise recorded growth but at a slower pace of 8.9 percent and 3.2 percent, respectively.
 
Industry rebounded by 3.2 percent from its 15.9 percent contraction in 2015. This was due to the turn-around in Construction which grew by 22.1 percent. Manufacturing and MAQ also grew but at a slower rate of 5.4 percent and 3.9 percent, respectively. On the other hand, EGWS continued to decline by 11.1 percent in 2016.
 
On the other hand, AHFF declined further by 3.0 percent as Fishing contracted to 9.0 percent. Agriculture and Forestry posted a lower decline of 0.9 percent.
 
In terms of contribution to the region’s overall growth rate, Services and Industry contributed 1.9 percentage points and 0.2 percentage point, respectively. AHFF, however, pulled down the growth by 1.7 percentage points.
 
 
Economic Performance by Industry
 
 
AHFF declines
 
AHFF declined by 1.3 percent in 2016 as a result of the decline in both Agriculture and Forestry and Fishing subsectors. Among the three major industries, its share to total GDP remained the smallest in 2016 at 8.7 percent, lower than its 9.5 percent share in 2015.
 
In 2016, four (4) regions exhibited growth in AHFF as compared to the previous year. These were: CALABARZON, 3.4 percent; Northern Mindanao, 2.4 percent; Eastern Visayas, 2.4 percent; and Central Luzon, 0.6 percent. The rest of the regions contracted with SOCCSKSARGEN pulling the growth most as it further declined by 9.5 percent from a 2.2 percent drop in the previous year. 
 
 
Figure 2. Growth Rates of Regional Economies in AHFF:
2014-2015 and 2015-2016 (at Constant 2000 Prices, in Percent)
 
 
Central Luzon continued to account for the largest share of the country’s AHFF output with a 16.3 percent share in 2016. It was followed by CALABARZON with 10.5 percent and Northern Mindanao with 9.4 percent. NCR continued to account for the smallest share to AHFF at 0.7 percent.
 
 
The top contributor to the AHFF growth was CALABARZON with a contribution of 0.34 percentage point followed by Northern Mindanao with 0.22 percentage point, Central Luzon with 0.10 percentage point, and Eastern Visayas with 0.08 percentage point. However, the positive contributions from these regions were pulled down by the negative contributions of the other regions by 2.03 percentage points - led by SOCCSKSARGEN with 0.7 percentage point.
 
 
Industry continues to expand 
 
Industry further expanded in 2016 by 8.4 percent in 2016 as compared with the 6.4 percent increase in 2015. It accounted for 33.9 percent of the country’s total GDP.
 
Among the 17 regions in the country in 2016, 15 regions recorded expansions year-on-year, 10 of which posted accelerated growth rates.
 
Regions with faster growth rates include: Central Visayas, Eastern Visayas, SOCCSKSARGEN, Ilocos Region, Central Luzon, MIMAROPA, Cagayan Valley, Northern Mindanao, and Davao Region. Meanwhile, regions which expanded but at slower pace were: Bicol, Western Visayas, Zamboanga Peninsula, CALABARZON, and NCR. On the other hand, Caraga and CAR declined. ARMM recorded the biggest acceleration from a 15.9 percent decline in the previous year to a 3.2 percent growth in 2016.
 
CALABARZON accounted for the bulk of the country’s total Industry output at 30.4 percent in 2016. It was followed by NCR with a 19.9 percent share and Central Luzon with a 13.0 percent share. 
 
Central Luzon was the top contributor to the 8.4 percent growth of Industry in 2016 with 1.9 percentage points followed by CALABARZON and NCR with 1.2 and 1.1 percentage points, respectively.
 
Industry contributed 2.8 percentage points to the GDP growth of 6.9 percent in 2016, higher than its contribution of 2.2 percentage points in 2015.
 
 
Figure 3. Growth Rates of Regional Economies in Industry:
2014-2015 and 2015-2016 (at Constant 2000 Prices, in Percent)
 
 
 
Services grows faster
 
Services accelerated from 6.9 percent in 2015 to 7.4 percent in 2016. It accounted for 57.3 percent of the country’s GDP in 2016.
 
All 17 regions in the country expanded, eight of which grew faster while the rest grew at a slower pace. The regions which posted accelerated growth rates in Services were: Caraga, NCR, Ilocos Region, Northern Mindanao, ARMM, Eastern Visayas, MIMAROPA, and CALABARZON.  
 
NCR remained to account for the bulk share of the total output of Services at 52.0 percent. CALABARZON ranked second with a 9.7 percent share while Central Luzon was third with a 6.4 percent share.
 
 
Figure 4. Growth Rates of Regional Economies in Services:
2014-2015 and 2015-2016 (at Constant 2000 Prices, in Percent)
 
 
NCR continued to be the biggest contributor with 4.1 percentage points to the 7.4 percent growth of Services in 2016. 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 6.9 percent GDP growth in 2016 with 4.2 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 increased from PhP 74,833 in 2015 to PhP 78,712 in 2016 or by 5.2 percent.
 
NCR posted the highest per capita GRDP at PhP 232,836 in 2016, nearly three times the national average and 6.3 percent higher than in 2015. Aside from NCR, only CALABARZON posted real per capita GRDP higher than the national average at PhP 94,826. 
 
 
Figure 5. GRDP Per Capita Index with Reference to the National Average
2015 and 2016 (at Constant 2000 Prices)
 
 
Eastern Visayas registered the highest increase in per capita at 10.3 percent from PhP 33,771 in 2015 to PhP 37,261 in 2016. It is followed by Central Luzon at 7.9 percent and Davao Region at 7.3 percent.
 
NCR posted the highest per capita index relative to the national average at 295.8 in 2016, followed by CALABARZON at 120.5. All 15 other regions have indices lower than the national average.
 

 

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