2011-2013 Gross Regional Domestic Expenditures

Release Date: 07 August 2014
1. Overall Performance 
1.1 Total Gross Regional Domestic Expenditure (GRDE)
Total gross regional domestic expenditure or GRDE in 2013 was valued at Php 6,765.5 billion at constant 2000 prices, 7.2 percent higher than its 2012 level of Php 6,312.2 billion. GRDE is the sum of all final uses of goods and services in the regional economies during the year. (Tables 6.1B and 6.3B). 
Among the major island groups, Luzon topped in terms of growth in 2013 posting 7.6 percent growth compared to last year’s 6.7 percent growth. Mindanao and Visayas posted positive growth of 6.3 and 6.0 percent, respectively in the same period (Table 3B and 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 2012 shares, with 14.3 percent and 12.6 percent of the total GRDE for 2013, respectively (Figure 2). 
The biggest contributor to the growth of the 2013 GRDE was the Luzon group, with NCR and Other Luzon contributing 3.2 percentage points and 2.3 percentage points, respectively to the 7.2 percent national growth during the year. The Visayas and Mindanao island groups likewise contributed 0.8 percentage point and 0.9 percentage points, respectively to the total domestic expenditures (Figure 3).
All regions recorded positive growth. Among the regions, Bicol posted the highest growth in 2013 at 9.4 percent, followed by NCR and SOCCSKARGEN with 9.1 percent and 8.4 percent, respectively. From a negative growth in 2012, Eastern Visayas recovered posting a positive growth of 5.7 percent. Likewise, Ilocos Region increases from 5.2 to 7.7 percent; Cordillera, from 1.0 to 6.0 percent; ARMM, from 1.1 to 3.6 percent. However, the rest of the regions experienced decelerated growth like CARAGA, from 10.7 to 7.8 percent; Central Visayas, from 9.4 to 7.4 percent; Davao Region, from 7.4 to 6.8 percent; CALABARZON, from 7.3 to 6.7 percent; Cagayan Valley, from 8.1 to 6.6 percent; Northern Mindanao, from 7.2 to 5.6; Ilocos Region, from 6.5 to 4.3 percent; Zamboanga Peninsula, from 12.9 to 4.3; Western Visayas, from 7.7 to 4.1 percent; and MIMAROPA, from 4.8 to 1.7 percent. (Table 6.3B and Figure 4).
NCR topped all the other regions in domestic spending with Php 2,455.3 billion accounting for 36.3 percent of the total expenditures of the country. At second and third places are CALABARZON and Ilocos Region with 17.4 percent and 9.0 percent of the total GRDE of the country for 2013, respectively (Table 6.2 B and Figure 5).
On the other hand, CARAGA and ARMM made the least contribution to total expenditures with 0.7 percent and 1.2 percent, respectively (Table 6.2B). 
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 69.4 percent of total expenditures, amounted to Php 4,694.8 billion in 2013, 5.7 percent higher than the previous year’s level of Php 4,442.5 billion (Tables 18.1B, 18.2B and 18.3B). 
In terms of the country’s island groupings, Visayas recorded the highest HFCE growth at 6.7 percent with the Mindanao and Luzon groups closely following with 5.6 percent and 5.4 percent, respectively (Table A). 
Table A. Household Final Consumption Expenditure, By Island Group, 2011 to 2013
At Constant 2000 Prices, In Million Pesos
Ilocos Region (Region I) posted the highest growth of 7.8 percent, acceleration from its 2012 growth of 6.5 percent. MIMAROPA (Region IV-B) and Central Visayas (Region VII) came in second and third at both 7.0 percent growth, accounting for 2.3 percent and 6.4 percent of total HFCE, respectively. On the other hand, the region with the least HFCE growth was CALABARZON (Region IV-A) with 4.1 percent (Figure 6).


NCR remained as the highest spending region on consumer goods and services at Php 1,112.9 billion or 23.7 percent of the total HFCE. Trailing behind are CALABARZON and Central Luzon at Php 753.1 billion and Php 550.3 billion, accounting for 16.0 percent and 11.7 percent, respectively to total HFCE (Figure 7).



Meanwhile, Autonomous Region of Muslim Mindanao (ARMM) the least spending region with its total household expenditure reaching Php 74.0 billion, accounted only for 1.6 percent of national HFCE.  CAR and CARAGA likewise remained to be low spending regions at Php 78.1 billion and Php 78.0 billion both contributing 1.7 percent to the total HFCE.
2.1.2 Per Capita HFCE
National household consumption per capita decelerated to 3.9 percent in 2013 from the previous year’s growth of 4.8 percent. In terms of levels, NCR registered the highest per capita level of Php 88,751 during the period which grew by 3.9 percent. However, Ilocos Region (Region I) per capita posted the highest expansion in real terms at 6.6 percent valued at Php 44,623. Western Visayas Region (Region VI) was next at 5.6 percent with Php 40,392. On the other hand, CALABARZON and SOCCSKSARGEN registered the least growth in per capita HFCE in real terms at 1.2 percent and 2.7 percent, respectively (Figure 8).



2.2 Government Final Consumption Expenditure (GFCE)
Government final consumption expenditures decelerated to 7.7 percent in 2013 from   last year’s higher growth of 15.5 percent growth. This year’s recorded expenditures reached Php 723.6 billion. (Table 8.1B and 8.3B and Figure 9).


Among the three major island groups, Visayas group posted the highest growth of 12.0 percent, followed by Mindanao group at 10.7 percent and Luzon group at 6.5 percent.  Within Luzon island, regions other than NCR recorded the highest growth of 12.4 percent while the total NCR grew only at 3.6 percent. Luzon accounted for the highest share of 74.7 percent to total government final consumption expenditures (Table B).
Table B. Government Final Consumption Expenditure, By Island Group, 2011 to 2013
At Constant 2000 Prices, In Million Pesos

All regions posted positive growth with SOCCSKARGEN Region exhibiting the highest growth of 14.0 percent but a deceleration from previous year’s lower growth of 23.1 percent. CALABARZON and Central Luzon ranked second and third highest and registering decelerated growth of 13.5 percent and 13.0 percent, respectively. On the other hand, the regions with the least GFCE growth were NCR at 3.6 percent, ARMM at 5.9 percent as well as CAR and CARAGA which tied at 5.9 percent (Figure 9). 
Among all regions, the share of NCR was the highest which accounted for 49.1 percent or almost half of the total government expenditures. Excluding NCR, the next top three regions namely: CALABARZON; Central Luzon; and Western Visayas recorded the next highest shares to total government expenditure accounting for 5.9 percent, 5.7 percent and 4.5 percent share, respectively to total GFCE. On the other hand, ARMM, CARAGA and CAR were the regions with the lowest registered shares of 1.7 percent, 1.8 percent and 1.9 percent, respectively (Table 8.2B and Figure 10).



2.3 Gross Domestic Capital Formation
Total capital formation amounted to Php 1,496.8 billion in 2013, 29.9 percent higher than the Php 1,152.1 billion registered in 2012. Meanwhile, fixed capital formation valued at Php 1,438.3 billion expanded by 11.9 percent from 10.8 percent in the previous year (Tables 18.1B and 18.3B).
2.3.1   Construction
Investments in total construction amounted to Php 583.6 billion in 2013, 10.4 percent higher than its 2012 level of Php 528.6 billion. Among the major island groups, Luzon (excluding NCR) cornered most of the investments in construction with 38.5 percent contribution, followed by the Visayas with 20.2 percent. Except for Mindanao, all island groups showed deceleration in terms of growth in 2013 which accelerated to 16.1 percent from 12.4 percent in 2012 (Table D).


Table D. Gross Value in Construction, By Island Group, 2011 to 2013
At Constant 2000 Prices, In Million Pesos
All the regions posted positive growth in 2013. Zamboanga Peninsula was the fastest growing region in construction investments with a growth of 30.5 percent in 2013, an acceleration from its 25.1 percent growth in 2012. This was followed by Davao Region with 19.7 percent from 14.0 percent, CAR with 18.7 percent from 7.5 percent and SOCCSKSARGEN with 18.3 percent from 5.1 percent. (Figure 11).


NCR continued to lead total construction investments with 23.6 percent share, followed by CALABARZON with 15.2 percent and Central Visayas with 11.9 percent. On the other hand, ARMM had the least contribution to total investment with a meager 0.1 percent (Figure 12).




Public Construction managed to sustain its double-digit growth from last year’s 17.3 percent to 14.9 percent in 2013. All the regions posted positive growth with Zamboanga Peninsula having the highest recorded growth at 30.3 percent in 2013 from 15.9 percent in 2012 followed by Central Luzon and Western Visayas with 29.0 percent and 20.5 percent, respectively. (Figure 13).



Private construction, which accounted for 79.6 percent of total investments in construction, decelerated to 9.3 percent in 2013 from 17.4 percent in 2012. CAR posted the highest growth with 33.9 percent from 8.9 percent in the previous year, followed by Zamboanga Peninsula and SOCCSKSARGEN with 30.7 percent and 26.2 percent, respectively. The rest of the regions likewise posted positive growth in 2013. (Figure 14).



2.3.2 Durable Equipment (DE)
Real investments in durable equipment accelerated to 15.5 percent growth from 7.0 percent as all regions exhibited growth in their investments.
Both Luzon and Mindanao posted accelerated growth of 16.1 percent and 14.5 percent from 7.6 percent and 8.3 percent, respectively.  Likewise, Other Luzon accelerated to 13.1 percent from 6.2 percent.  Meanwhile Investments in the Visayas rebounded by 9.5 percent from a decline of 0.3 percent (Table E).


Table E. Gross Domestic Capital Formation in Durable Equipment, By Island Group, 2011 to 2013
At Constant 2000 Prices, In Million Pesos
Among the regions, NCR, which accounted for 39.8 percent of the total DE investments, posted the highest growth with 19.9 percent from 9.5 percent.  Other regions with expansion in real investments in DE are:  CALABARZON, with a share of 40.3 of the total investments in DE, grew by 14.6 percent from 8.5 percent; Central Visayas increased by 11.6 percent from negative 1.5 percent; Central Luzon, rebounded to 8.1 percent from a decline of 8.6 percent; CAR, 4.3 percent from 1.6 percent; Davao Region, 10.7 percent from 0.9 percent; and, SOCCSKSARGEN, 15.9 percent from 12.3 percent (Figure 15).



2.3.3 Breeding Stocks and Orchard Development (BSOD)
The combined investments on breeding stocks and orchard development declined by   4.0 percent in 2013, from 1.4 percent growth in 2012. The total value of investments for the sector reached Php 96 billion lower than the Php 100 billion recorded in 2012. (Tables 13.1B and 13.2B)
Regions in Luzon continued to lead in investments in breeding stocks and orchard development contributing 62.5 percent, followed by Mindanao group with 20.8 percent and the Visayas group with 16.7 percent. All three major island groups registered decreases in 2013 with investments in the Visayas at negative 6.0 percent from positive 1.5 percent recorded in 2012; Mindanao group further declined to negative 4.0 percent from negative 1.7 percent. Luzon likewise declined by 3.5 percent from its positive 2.5 percent growth in 2012 (Table F).


Table F. Gross Domestic Capital Formation in Breeding Stocks, Orchard Development,
By Island Group, 2011 to 2013, At Constant 2000 Prices, In Million Pesos
the regions, Central Luzon and Cagayan Valley were the two regions which posted an increase of 1.7 percent and 0.03 percent, respectively. Meanwhile, CARAGA and Eastern Visayas regions posted double digit declines of 16.8 and 16.2 percent, respectively (Table 23.3B and Figure 17). 


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 37.7 billion in 2013, 16.4 percent higher than the Php 32.4 billion recorded in 2012.  All major island groups registered double digit growth with Visayas leading the group at 13.9 percent, followed closely by Other Luzon at 13.2 percent and Mindanao at 11.4 percent. Meanwhile, NCR decelerated to 17.0 percent from 20.7 percent in 2012 (Table G).


Table G. Gross Domestic Capital Formation In Intellectual Property Products
By Island Group, 2011 to 2013 At Constant 2000 Prices, In Million Pesos
Among the regions, National Capital Region continued to sustain the highest growth recorded in 2013 at 17.0 percent. This was followed by Central Luzon, Central Visayas and Davao Region with accelerated growth of 14.7 percent from 2.8 percent, 14.6 percent from 4.6 percent, and 14.5 percent from 0.7 percent, respectively (Table 14.3B and Figure 19).


NCR has the biggest share with 84.0 percent in 2013 while ARMM has the least contribution to the total IPP (Figure 20).


2.3.5    Changes in Inventories (CIN)
Changes in inventories in 2013 resulted to additions which amounted to Php 58.5 billion from withdrawals of Php 113.1 billion in 2012.  
By major island group, Luzon and Mindanao posted additions in 2013, amounting to Php 47.4 billion and Php 25.5 billion from withdrawals of Php 71.8 billion and Php 19.3 billion in the previous year, respectively. On the other hand, Visayas recorded a withdrawal amounting to Php 14.4 billion from withdrawals of Php 42.0 billion (Table H).
Table H. Changes In Inventories, By Island Group, 2011 to 2013
At Constant 2000 Prices, In Million Pesos 


Among the regions, 11 regions registered additions in their inventories. The top three regions were National Capital Region posting an amount of Php 34.4 billion, followed by Central Luzon at Php 14.6 billion and SOCCSKARGEN at Php 10.6 billion. Meanwhile, the top three regions which recorded withdrawals were Eastern Visayas, MIMAROPA and Ilocos Region amounting to Php 14.7, Php 6.3 and Php 6.2 billion, respectively.
2.4 Net Exports
Philippines recorded a deficit in net exports in 2013 amounted to Php 149.7 billion from a surplus valued at Php 45.4 billion in 2012. All regions posted deficits except NCR and Northern Mindanao which registered surpluses amounted to Php 496.3 billion and Php 24.7 billion, respectively, during the year (Table 16.1B).



Gross Regional Domestic Expenditure by Year Published

Highlights by Year Published


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