2012-2014 Gross Regional Domestic Expenditures

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1. Overall Performance
 
1.1 Total Gross Regional Domestic Expenditure (GRDE)
Total   gross    regional   domestic expenditure   or  GRDE in 2014  was valued at Php 7,164.0 billion at constant 2000 prices, 6.1 percent higher than its 2013 level of   Php 6,750.1 billion. GRDE is the sum of all final uses of goods and services in the regional economies during the year.

Among the major island groups, Mindanao topped in terms of growth in 2014 posting 7.4 percent growth compared to last year’s 6.3 percent. Luzon and Visayas posted positive growth of 6.0 and 5.6 percent, respectively in the same period (Figure 1).

 

 

Luzon continued to get the lion’s share of the country’s expenditures accounting with almost three fourths or 73.1 percent of the total expenditures. On the other hand, the contributions of the Mindanao and Visayas did not vary much from their 2013 shares, with 14.4 percent and 12.4 percent of the total GRDE for 2014, respectively.
 
The biggest contributor to the 2014 GRDE growth was the Luzon group, with Other Luzon and NCR contributing 2.3 and 2.1 percentage points, respectively to the national growth of 6.1 percent during the year. The Mindanao and Visayas island groups likewise contributed 1.1 and 0.7 percentage points, respectively to the total domestic expenditures.
 
All regions recorded positive growth except for Eastern Visyas which contracted to 2.3 percent in 2014 from 4.5 percent in 2013. Among the regions, Davao posted the highest growth in 2014 at 9.4 percent from 6.7 percent. This was followed by: Central Luzon, 9.0 percent from 4.4 percent; Central Visayas, 8.8 percent    from 7.4 percent; CARAGA Region, 7.8 percent from 8.1 percent; Northern Mindanao, 7.2 percent from 5.3 percent; MIMAROPA, 6.5 percent from 1.3 percent; Zamboanga Peninsula, 6.5 percent from 4.1 percent, SOCCSKSARGEN, 6.4 percent from 8.4 percent, Cagayan Region, 6.4 percent from 6.2 percent; NCR, 5.9 percent from 9.2 percent; Ilocos Region, 5.7 percent from     6.8 percent;    CALABARZON, 5.1 percent from 6.7 percent; Western Visayas, 4.9 percent from 3.4 percent; Bicol Region, 4.2 percent from 8.1 percent; CAR, 3.2 percent from 5.4 percent; ARMM, 3.0 percent from 3.8 percent (Figure 2).
 

 

NCR topped all the other regions in domestic spending with Php 2,600.0 billion accounting for 36.3 percent of the total expenditures of the country. At second and third places are CALABARZON and Central Luzon with 17.2 and 9.3 percent of the total GRDE of the country for 2014, respectively.
On the other hand, ARMM and CARAGA had the least share to total expenditures with 0.7 percent and 1.3 percent, respectively.
 
2.  Sectoral highlights
 
2.1 Household Final Consumption Expenditures (HFCE)
 
2.1.1 Total HFCE
 
The country’s household final consumption expenditures (HFCE), which comprised 69.1 percent of total expenditures, amounted to Php 4,947.0    billion in    2014, 5.4 percent higher than the previous year’s level of Php 4,692.4 billion.
 
In terms of the country’s island groupings, Visayas recorded the highest HFCE growth at 5.7 percent with the Luzon and Mindanao groups closely following with 5.4 percent and 5.2 percent, respectively.

Central Luzon posted the highest growth of 9.4 percent, acceleration from its 2013 growth of 5.9 percent. Davao Region and Central Visayas came in second and third at 8.5 and 7.6 percent growth, accounting for 3.9 percent and 6.5 percent of total HFCE, respectively. On the other hand, the region with the least HFCE growth was ARMM with 1.2 percent (Figure 3).

 

NCR remained as the highest spending region on consumer goods and services at Php 1,160.3 billion or 23.5 percent of the national HFCE. Trailing behind are CALABARZON and Central Luzon at Php 796.3 billion and Php 601.7 billion, accounting for 16.1 percent and 12.2 percent, respectively to total HFCE.
 
Meanwhile, ARMM the least spending region with its total    HFCE    level reaching Php 74.9 billion, representing 1.5 percent of national HFCE. CAR and CARAGA likewise remained to be low spending regions at Php 80.9 billion and Php 80.2 billion both contributing 1.6 percent to the total.
 
2.1.2 Per Capita HFCE
 
Central Luzon per capita HFCE posted the    highest    growth in    real    terms at 7.4 percent valued at Php 54,574. Davao Region was next at   6.6 percent with Php 40,081. On the other hand, ARMM registered a decline in per capita HFCE in real terms at 0.1 percent (Figure 4).
 

 

2.2 Government Final Consumption Expenditure (GFCE)

Government final consumption expenditures slowed down to 1.7 percent in 2014 from   last year’s 5.0 percent growth. This year’s recorded expenditures    reached Php 718.1 billion due to slowdown of major government expenditures for salaries and wages as well as maintenance and other operating expenses (MOOE) of the government (Figure 5).

 

Among the three major island groups, Visayas group posted the highest growth in 2014 at 3.0 percent;    Mindanao group at 2.9 percent    and    Luzon    group at 1.3 percent.
 
All regions posted positive growths with ARMM recording the highest growth in 2014 at   3.9 percent form 8.7 percent followed by Zamboanga Peninsula at 3.7 percent from 7.9 percent and SOCCSKARGEN Region at 3.6 percent from 8.2 percent. Meanwhile, the three lowest regions were: NCR, 0.5 percent from 5.7 percent; CAR, 1.1 percent from 1.0 percent; and CARAGA Region, 1.1 percent from 3.7 percent.
 
Among all regions, the    share of NCR    was the    highest    which accounted for 49.4 percent or almost half of the total government expenditures. The next top three regions were: Central Luzon; CALABARZON; and Western Visayas which accounted to 5.6 percent, 5.5 percent and 4.4 percent share, respectively to total GFCE. On the other hand, CAR, CARAGA and ARMM were the regions with the lowest registered shares of 1.8 percent, 1.9 percent and 2.1 percent, respectively.
 
2.3 Gross Domestic Capital Formation
 
Total capital formation amounted to Php 1, 568.3 billion    in 2014    decelerated to   5.4 percent in 2014 from 27.7 percent. Meanwhile, fixed capital    formation valued at Php 1, 539.1 billion slowed down to 6.8 percent in 2014 from 12.2 percent during the previous year.
 
2.3.1   Construction
 
Investments in total construction amounted to Php 650.6 billion in 2014, up by 10.9 percent compared to Php 586.7 billion in 2013. Among the major island groups, Luzon (excluding NCR) cornered most of the investments in construction with 37.8 percent share of the total investments in construction. Visayas, meanwhile received 22.8 percent of the total construction investments while Mindanao received for 18.8 percent. Of the three island groups, Gross Value (GV) of construction grew the fastest in the Visayas, accelerating to 24.8 percent in 2014 from 7.3 percent in 2013. Construction GV in Mindanao grew slightly faster in 2014 to 17.7 percent from 17.1 percent in the previous year. Construction GV in Luzon, meanwhile, slowed down to 4.4 percent from 10.6 percent in 2013.

Construction investments in ARMM grew the fastest in 2014 with a recorded growth of 146.2 percent, an acceleration from its 2.1 percent growth in 2013. This was followed by MIMAROPA with 41.5 percent from 16.1 percent, and Eastern Visayas with 32.6 percent from 11.1 percent (Figure 6).

 

NCR continued to lead total construction investments with 20.7 percent share, followed by CALABARZON with 14.2 percent and Central Visayas with 13.5 percent. On the other hand, ARMM had the least contribution to total investment with a meager 0.3 percent.
 
Growth in Public Construction slowed down to 6.3 percent in  2014 from 18.0 percent in 2013. Public Construction in Zamboanga Peninsula grew the fastest in 2014, sustaining a double-digit growth of 52.0 percent in from 33.7 percent in the previous year. Western Visayas registered the second fastest growth in Public Construction at 40.8 percent, followed by Eastern Visayas and MIMAROPA, as both regions registered a growth in Public Construction Investments of 36.3 percent.
 
Private construction, which accounted for 80.0 percent of total investments in construction, grew faster to 12.1 percent from 9.3 percent in 2013. ARMM posted the highest growth with 154.3 percent from 1.9 percent in the previous year. MIMAROPA and Northern Mindanao grew by 47.3 percent and 35.7 percent, respectively.
 
2.3.2 Durable Equipment (DE)
 
Real investments in durable equipment slowed down to 3.7 percent growth from 15.5 percent as all regions exhibited growth in their investments.
 
Mindanao posted the highest growth rate of 7.4 percent from 12.8 percent while Luzon and Visayas posted minimal growths of 3.6 percent and 2.2 percent growth respectively.  Other Luzon accelerated to 7.7 percent from negative 7.7 percent quite the reverse for NCR that posted 0.6 percent from 51.8 percent.   Meanwhile Investments in the Visayas rebounded by 2.2 percent from a decline of negative 14.8 percent.
 

Among the regions, NCR which accounted for 48.7 percent of the total DE investments posted the lowest growth of 0.6 percent from 51.8 percent.  Other regions with notable expansion in real investments in DE are: CALABARZON, with a share of 29.3 of the total investments in DE, turned around to 7.7 percent from 0.6 percent; Central Luzon, rebounded to 15.4 percent from 32.3 percent; Central Visayas, negative 3.5 percent from negative 13.2 percent; and, SOCCSKSARGEN, 29.3 percent from 48.0 percent (Figure 7).

 

2.3.3 Breeding Stocks and Orchard Development (BSOD)
 
The combined investments on breeding stocks and orchard development improved its performance from its contraction of 4.0 percent to 0.7 percent for 2014. The total value of    investments  for the sector reached Php 95 billion lower than the Php 96 billion recorded in 2013.
 
Luzon continued to lead in investments in breeding stocks and orchard development with 63.5 percent, followed by Mindanao group with 21.1 percent and the Visayas group with 15.5 percent. Investments in the Visayas continue to decelerate by negative 7.7 percent from negative 6.0 percent recorded in 2013, while the Mindanao    group    recovered from its contraction of 4.0 percent to a positive 0.7 percent. Likewise, Luzon accelerated by 0.7 percent from negative 3.5 percent in 2013.

Among the regions, CARAGA posted an increase of 13.2 percent. This was followed by Zamboanga Peninsula and Central Luzon which grew by 11.8 and 7.4 percent respectively. Meanwhile, ARMM, Central Visayas and Eastern Visayas regions posted negative growths of 27.8, 20.2 and 17.1 percent, respectively (Figure 8).

 
2.3.4 Intellectual Property Products
 
Intellectual Property Products (IPP) includes expenditures on research and development, mineral exploration, computer software and databases, and entertainment, literary or artistic originals.
 
Expenditures in IPP amounted to Php 45.2 billion in 2014, 19.7 percent higher than the Php 37.7 billion recorded in 2013.  All major island groups except Luzon have decelerated growths with Visayas leading the group at 4.9 percent, followed closely by Mindanao at 0.9 percent and Other Luzon at negative 5.2. Meanwhile, NCR accelerated to 24.0 percent from 17.0 percent in 2013.

National Capital Region continued to be the region with the highest recorded growth in 2014 at 24.0 percent. It was followed by Bicol with accelerated growth of 10.0 percent from 9.4 percent. Meanwhile, Zamboanga Peninsula and Davao Region have slowed down growths of 8.1 percent from 10.7 percent, and 8.1 percent from 14.5 percent, respectively (Figure 9).

 

Among the regions, NCR has the biggest share with 87.0 percent in 2014 while ARMM has the least contribution to the total IPP.
 
2.3.5    Changes in Inventories (CIN)
 
For two consecutive years, Changes in Inventories at the national level recorded additions which amounted to Php 29.2 billion and Php 46.4 billion in 2014 and 2013, respectively.  
 
By major island groups, Luzon and Mindanao accumulated additions of Php 23.1 and Php 6.5 billion in 2014 from higher additions of Php 39.6 and Php 27.0 billion in 2013, respectively. However, Visayas region posted withdrawals of Php 347 million in 2014 from a higher withdrawals of Php 20.1 billion in 2013.
 
Among the regions, 15 regions registered additions in their inventories in 2014. The top three among those are the National Capital Region posting an amount of Php 5.2 billion; Central Luzon and CALABARZON with Php 4.7 billion additions each; Ilocos Region with Php 3.6 billion. The two regions which recorded withdrawals were Western Visayas and Eastern Visayas with Php 2.0 billion and Php 257 million, respectively. 
 
2.4 Net Exports
 
Philippines recorded a deficit net exports in 2014 which amounted to Php 69. 4 billion from a higher deficit of Php 136.1 billion in 2013. All regions posted deficits except for five regions: NCR, Php 541.0 billion; CALABARZON, Php 48.4 billion; Northern Mindanao, Php 27.6 billion, Davao Region, Php 3.8 billion; and CAR, Php 1.7 billion.

 

 
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