2010 - 2012 Gross Regional Domestic Expenditures

Release Date: 08 August 2013
1. Overall Performance
1.1 Total Gross Regional Domestic Expenditure (GRDE)
Total gross regional domestic expenditure or GRDE in 2012 was valued at Php 6,311.7 billion at constant 2000 prices, 6.8 percent higher than its 2011 level of Php 5,909.0 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 and Mindanao doubled their performances in 2012 posting growths of 6.8 percent and 8.2 percent from 3.2 percent and 4.2 percent, respectively in 2011.  Visayas maintained its growth at 5.6 percent (Table 3B and Figure 1).


Luzon continued to get the lion’s share of the country’s expenditures accounting with almost three fourths or 72.9 percent of the total expenditures. On the other hand, the contributions of the Mindanao and Visayas groups did not vary much from their 2011 shares, with 12.7 percent and 14.4 percent of the total GRDE for 2012, respectively (Figure 2).




The biggest contributor to the growth of the 2012 GRDE was the Luzon group, with NCR and Other Luzon contributing 2.6 percentage points and 2.3 percentage points, respectively. The Visayas and Mindanao island groups likewise contributed 0.7 percentage point and 1.2 percentage points, respectively to the total domestic expenditures (Figure 3).


Among the regions, Zamboanga Peninsula posted the highest growth in 2012 at 12.4 percent, followed by Caraga and Central Visayas with 10.6 percent and 9.3 percent, respectively (Table 6.3B).
Despite the reversal in growth suffered by Eastern Visayas from 2.1 percent to negative 6.2 percent, this was ably compensated by the increases displayed by NCR, from 3.1 percent to 7.3 percent; Ilocos, from 2.4 percent to 5.2 percent; Cagayan Valley, from 5.6 percent to 8.2 percent; CALABARZON, from 1.7 percent to 7.0 percent; MIMAROPA, from 3.1 percent to 4.2 percent; Bicol, from 1.9 percent to 7.1 percent;  Western Visayas, from 6.2 percent to 7.5 percent; Central Visayas, from 6.8 percent to 9.3 percent; Zamboanga Peninsula, from 0.1 percent to 12.4 percent, Northern Mindanao, from 5.8 percent to 7.4 percent; Davao Region, from 3.7 percent to 7.4 percent; SOCCSKSARGEN, from 5.3 percent to 8.1 percent and Caraga, from 8.5 percent to 10.6 percent. ARMM exhibited a turnaround, from negative 0.3 percent to 1.2 percent. Cordillera and  Central Luzon experienced decelerated growths in the same year.


NCR topped all the other regions in domestic spending with Php 2,255.1 billion accounting for 35.7 percent of the total expenditures of the country. At second and third places are CALABARZON and Central Luzon with 17.4 percent and 9.2 percent of the total GRDE of the country for 2012, respectively (Table 6.2 B and Figure 5).




On the other hand, Caraga and ARMM made the least contribution to total expenditures with 1.2 percent and 0.8 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 70.4 percent of total expenditures, amounted to Php 4,442.5 billion in 2012, 6.6 percent higher than the previous year’s level of Php 4,168.9 billion (Tables 18.1B, 18.2B and 18.3B).
In terms of the country’s island groupings, Visayas recorded the highest HFCE growth at 7.1 percent with the Luzon and Mindanao groups closely following at 6.5 percent and 6.4 percent, respectively (Table A). 

Northern Mindanao posted the highest growth at 7.8 percent, an acceleration from its 2011 growth of 6.8 percent.  Eastern Visayas, Central Visayas and Western Visayas came in second, third and fourth with 7.2 percent, 7.1 percent and 7.0 percent growths, respectively, accounting for a combined 16.3 percent of the total HFCE. On the other hand, the region with the least HFCE growth was Autonomous Region in Muslim Mindanao (ARMM) with 5.4 percent (Figure 6).




NCR remained as the highest spending region on consumer goods and services at Php 1050.8 billion or 23.7 percent of the national HFCE. Trailing behind are CALABARZON and Central Luzon at Php 710.3 billion and Php 524.6 billion, accounting for 16.0 percent and 11.8 percent, respectively to total HFCE (Figure 7).




Meanwhile, ARMM continued to be the least spending region with an HFCE level valued at Php 69.3 billion, contributing 1.6 percent to the national HFCE.  CAR and CARAGA likewise remained to be low spending regions at Php 74.8 billion and Php 75.5 billion, respectively, providing 1.7 percent each to the total HFCE (Table 7.2B).
2.1.2 Per Capita HFCE
CALABARZON posted the highest HFCE per capita  expansion in real terms at 4.3 percent valued at Php 53,314 followed by Davao Region at 4.2 percent with Php 36,260. On the other hand, MIMAROPA and Zamboanga Peninsula posted decelerations in their per capita HFCE in real terms at 4.7 percent each (Figure 8).


2.2 Government Final Consumption Expenditure (GFCE)
Government final consumption expenditures in 2012 reached Php 653.1 billion, expanding by 12.2 percent from its 2.1 percent growth a year ago (Tables 8.1B and 8.3B and Figure 9).


Taking out NCR, which accounted for 51.1 percent of the total GFCE, government expenditures was highest in Other Luzon with 24.3 percent share followed by  the Mindanao and Visayas groups with 13.8 percent and 10.7 percent share, respectively (Table B). 
All regions posted positive growths with SOCCSKSARGEN exhibiting the highest growth at 20.9 percent from previous year’s growth of 1.0 percent. Caraga, CAR and ARMM followed at second, third and fourth places registering growths of 19.3 percent, 16.8 percent and 16.3 percent, respectively.  On the other hand, NCR posted the least GFCE growth at 10.4 percent (Figure 9).
Among all the regions (excluding NCR), Central Luzon, CALABARZON,  and Western Visayas recorded the highest shares to total government expenditure accounting for 5.5 percent, 5.5 percent and 4.3 percent share, respectively  to total GFCE. On the other hand, CARAGA and ARMM were the regions with the lowest registered shares of 1.8 percent each (Table 8.2B and Figure 10).



2.3 Gross Domestic Capital Formation
Total gross fixed capital formation amounted to Php 1,280.0 billion in 2012, 10.4 percent higher than the Php 1,159.0 billion recorded in 2011 (Tables 18.1B and 18.3 B).
2.3.1   Construction
Investments in total construction amounted to Php 517.2 billion in 2012, 15.1 percent higher than its 2011 level of Php 449.4 billion. Among the major island groups, other Luzon cornered most of the investments in construction with 38.5 percent contribution, followed by the Visayas with 21.0 percent. All island groups showed improvement in terms of growth in construction investments in 2012 with Visayas having the highest growth at 24.6 percent. (Table D).


Total Construction grew by 15.1 percent as all of the regions rebounded in 2012 except ARMM. The regions which recorded the fastest growths in 2012 are: Eastern Visayas with 30.6 percent from a decline of 15.2 percent in 2011, followed by Zamboanga Peninsula and Western Visayas with 28.0 percent and 24.7 percent from  a decline of 10.0 percent and 11.0 percent, respectively. On the other hand, ARMM declined by 10.2 percent from 73.9 percent in the previous year. (Figure 11).




NCR continued to lead total construction investments with 23.3 percent share, followed by CALABARZON with 15.1 percent and Central Visayas with 12.7 percent. On the other hand, ARMM had the least contribution to total investment with 0.2 percent (Table 9.2B and Figure 12).



Public Construction turned around from the previous year's decline of 39.5 percent to 29.8 percent growth in 2012. All the regions rebounded in 2012 with Eastern Visayas having the highest recorded growth at 43.5 percent from negative 41.9 percent in 2011 followed by Davao Region and Bicol Region with 43.0 percent and 41.9 percent, respectively.  All the other regions likewise posted  double-digit growths in 2012. (Figure 13).




Private construction, which accounted for 78.1 percent of total investments in construction, accelerated to 11.5 percent growth from 4.5 percent in 2011. Zamboanga Peninsula posted the highest growth with 33.8 percent from 33.5 percent in the previous year followed by Central Visayas and CALABARZON with 21.8 percent each. The rest of the regions posted positive growths except ARMM, MIMAROPA and Ilocos region. (Figure 14).



2.3.2 Durable Equipment (DE)
Real investments in durable equipment accelerated to 8.0 percent growth from 2.7 percent as almost all regions, except for the decline posted by three regions, exhibited growth in their investments. 
Both Luzon and Mindanao posted accelerated growths of 8.6 percent and 9.5 percent from 1.9 percent and 4.4 percent, respectively.  Investments in the Visayas, however, decelerated to 0.8 percent from 11.5 percent.  Other Luzon rebounded to 7.2 percent from a contraction of 2.0 percent (Table D).
Among the regions, CALABARZON which accounted for 40.6 percent real investments in DE contributed the most to its accelerated growth with 9.3 percent from a decline of 2.7 percent in 2011. The expansion was further cushioned by the increases exhibited by the following regions: ARMM, 21.8 percent from 4.7 percent; Northern Mindanao, 16.4 percent from 6.0 percent; SOCCSKSARGEN, 13.3 percent from 5.6 percent; MIMAROPA, 13.3 percent from 0.8 percent; NCR, 10.5 percent from 7.6 percent; Ilocos region, 9.7 percent from a decline of 4.3 percent; Caraga, 2.8 percent from negative 0.7 percent; and Davao region, 2.3 percent from 1.0 percent (Tables 12.2B and 12.3B).
On the other hand, Central Luzon declined further from 4.3 percent to 6.5 percent while Bicol region and Central Visayas both suffered reversal at 6.5 percent and 0.3 percent  from  growths of 6.8 percent and 10.4 percent, respectively (Figure 16).


2.3.3 Breeding Stocks and Orchard Development (BSOD)
The combined investments in breeding stocks and orchard development grew by 1.4 percent in 2012, from a decline of 0.3 percent in 2011. The total value of investments for the sector reached Php 100.1 billion compared to Php 98.7 billion recorded in 2011 (Tables 13.1B and 13.2B).
Luzon continued to lead in investments in breeding stocks and orchard development with 62.6 percent, followed by Mindanao with 20.7 percent and the Visayas group with 16.7 percent. BSOD investments in the Visayas and Mindanao posted lower negative growths in 2012 compared to previous year. Luzon retained its growth of 3.1 percent while NCR grew by 3.4 percent from a year ago contraction of 2.5 percent (Table E).
Among the regions, CALABARZON posted the highest growth of BSOD investments at 7.2 percent followed by Northern Mindanao which grew by 4.6 percent from negative 2.8 percent and Western Visayas which turned around from a contraction of 7.2 percent to a growth of 3.3 percent. CAR likewise posted 3.2 percent increase from a decline of 4.0 percent in 2011 (Table 23.3 B and Figure 17).

Meanwhile, other regions suffered declines in 2012, i.e., Ilocos region, Cagayan Valley, Bicol region, Central Visayas, Eastern Visayas, Zamboanga Peninsula, Davao region, SOCCSKSARGEN, Caraga and ARMM.




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 32.7 billion in 2012, 18.0 percent higher than the Php 27.7 billion posted in 2011.  All major island groups registered double digit growths with Other Luzon leading the group at 52.4 percent, followed closely by Mindanao at 51.6 percent and Visayas at 46.6 percent. Meanwhile, NCR  trailed far behind at fourth place with 10.4 percent growth (Table G).
Region-wise, highest growth in IPP was recorded by Caraga at 61.4 percent in 2012 from 12.2 percent in 2011. CALABARZON and Northern Mindanao trailed closely behind at second and third places at 54.7 percent and 54.3 percent from 5.9 percent and 6.8 percent, respectively. The rest of the regions posted double-digit growths in 2012 (Tables 14.2B and 14.3B).
Among the regions, NCR had the biggest share at 76.1 percent, accounting for more than three-fourths of the total IPP expenditures in 2012. 



2.3.5    Changes in Inventories (CIN)
Changes in inventories in 2012 resulted to withdrawals which amounted to  Php 111.7 billion compared to additions of Php 47.8 billion in 2011.   (Table 15.1B).
By major island group, Visayas posted additions in 2012, amounting to Php 42.8 billion from additions of Php 20.2 billion in the previous year.  On the other hand, both Luzon and Mindanao recorded withdrawals  of Php 106.5 billion and Php 47.9 billion, respectively, in 2012.  Compared to the previous year, Luzon had additions of Php 46.8 billion  while  Mindanao posted withdrawals amounting to Php 19.2 billion. (Table H).

Among the regions, nine regions registered additions in their inventories, with the Central Visayas posting the highest amount at Php 42.4 billion, followed by CALABARZON at Php 28.3 billion and National Capital Region at Php 20.9 billion. Meanwhile, Central Luzon recorded the highest withdrawals at Php 141.9 billion, followed by Northern Mindanao at Php 64.4 billion and Western Visayas at Php 16.9 billion. 





Gross Regional Domestic Expenditure by Year Published

Highlights by Year Published


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