Gross Regional Domestic Expenditure, 2009 to 2011

Release Date: 15 August 2012
1.  Overall Performance
1.1 Total Gross Regional Domestic Expenditure (GRDE) 
The gross regional domestic expenditure or GRDE in 2011 was valued at Php 5,924.4 billion at constant 2000 prices, 3.9 percent higher than its 2010 level of Php 5,701.5 billion. GRDE is the sum of all final uses of goods and services in the regional economies during 
All the island groups exhibited decelerated growths in 2011 with Luzon, Visayas and Mindanao posting growths of 3.7 percent, 5.9 percent and 3.2 percent from 8.3 percent, 7.3 percent and 4.7 percent, respectively in 2010 (Table 3B and Figure 1)
Luzon continues to get the lion’s share of the country’s expenditures accounting with almost three fourths or 73.2 percent of the total expenditures. On the other hand, the contributions of the Mindanao and Visayas groups did not vary much from their 2010 shares, with 14.1 percent and 12.8 percent of the total GRDE for 2011, respectively (Figure 2). 

The biggest contributors to the growth of the 2011 GRDE was the Luzon group, with Other Luzon and NCR contributing 3.3 percentage points and 2.7 percentage points, respectively. The Visayas and Mindanao island groups likewise contributed 0.9 percentage points and 0.7 percentage points, respectively to the total domestic expenditures (Figure 3).

Caraga posted the highest growth in 2011 at 9.6 percent, followed by Central Visayas and Central Luzon with 7.9 percent and 7.5 percent, respectively.
Despite the reversal in growth suffered by Autonomous Region in Muslim Mindanao (ARMM) from 2.3 percent to negative 1.0 percent, this was ably compensated by the turnaround exhibited by Cagayan Valley which posted 5.4 percent growth from  negative 1.1 percent in 2010. The growth was further cushioned by the increases displayed by MIMAROPA, from 1.1 percent to 2.5 percent; Western Visayas, 3.7 percent to 5.5 percent; SOCCSKSARGEN, 2.0 percent to 4.0 percent; and Caraga, 7.4 percent to 9.6 percent in 2011. The rest of the regions experienced decelerated growths in the same year (Figure 4).
NCR topped all other regions in domestic spending with Php 2,114.8 billion accounting for 35.7 percent of the total expenditures of the country. At far second and third places are CALABARZON and Central Luzon with 17.4 percent and 9.3 percent of the total GRDE of the country for 2011, 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.   
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 70.8 percent of total expenditures, amounted to Php 4,194.5 billion in 2011, 6.3 percent higher than the previous year’s level of Php 3,945.8 billion (Tables 18.1B, 18.2B and 18.3B). 
In terms of the country’s island groupings, Luzon recorded the highest HFCE growth at 6.5 percent while Visayas and Mindanao posted 6.2 percent and 5.2 percent, respectively  (Table A).

Central Luzon posted the highest growth of 7.0 percent, an acceleration from its 2010 growth of 4.7 percent.  Closely following behind are NCR, CALABARZON and Zamboanga Peninsula posting growths of 6.8 percent each contributing 23.8 percent, 16.2 percent percent and 2.4 percent, respectively of the national HFCE. On the other hand, the region with the least HFCE growth was Caraga with 4.1 percent (Figure 6).

NCR remained as the highest spending region on consumer goods and services at Php 997.5 billion or 23.8 percent of the national HFCE. Trailing behind are CALABARZON and Central Luzon at Php 679.5 billion and Php 501.2 billion, accounting for 16.2 percent and 11.9 percent, respectively of the total HFCE (Figure 7).
Meanwhile, ARMM continued to be the least spending region with an HFCE level valued at Php 65.7 billion, representing 1.6 percent of the national HFCE.  Cordillera Administrative Region (CAR) and Caraga likewise remained to be low spending regions at Php 69.7 billion and Php 70.0 billion contributing 1.7 percent each of the total HFCE.
2.1.2 Per Capita HFCE 
Western Visayas’ per capita posted the highest expansion in real terms at 5.3 percent valued at Php 37,094 with NCR closely following at 5.1 percent with Php 82,572. On the other hand, Davao Region registered the lowest per capita HFCE in real terms at 2.6 percent valued at Php 34,908 (Figure 8).
2.2 Government Final Consumption Expenditure (GFCE)
Government final consumption expenditures in 2011 reached Php 575.8 billion, posting a minimal growth of 1.0 percent from last year’s growth of 4.0 percent. The growth of all regions decelerated as the regions were heavily affected by the government’s underspending (Figure 9). 

Taking out NCR, Luzon posted 1.4 percent growth followed by the Mindanao and Visayas groups with 1.3 percent and 0.8 percent growths, respectively (Table B).

Among the regions in Luzon and excluding NCR, Central Luzon and CALABARZON   registered the highest growths in government expenditures at 5.5 percent and 5.4 percent, respectively. In the Visayas group, Western Visayas ranked top with 4.3 percent growth. Meanwhile, Northern Mindanao registered the highest growth at 2.7 percent in government expenditures in the Mindanao group (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, 5.4 percent and 4.3 percent share, respectively to total (Figure 10).
2.3 Gross Domestic Capital Formation
The total gross domestic capital formation amounted to Php 1,279.7 billion, 8.1 percent higher than the Php 1,183.6 billion recorded in 2010 (Tables 18.1B and 18.3 B).
2.3.1   Construction
Investments in total construction amounted to Php 460.4 billion in 2011, 6.2 percent lower than the year-ago level of Php 490.7 billion. Among the major island groups, Other Luzon cornered most of the investments in construction garnering 39.7 percent of the total investments for construction, followed by NCR with 24.7 percent share. Meanwhile, the Visayas and Mindanao groups contributed 20.0 and 15.5 percent to total construction, respectively. Visayas showed the highest improvement in terms of growth in construction investments in 2011, posting 8.4 percent from 12.5 percent last year (Table C).
Total Construction declined as most of the regions posted negative growths in 2011. Northern Mindanao registered the highest decline of 25.7 percent from a double-digit growth of 13.9 percent in 2010. On the other hand, the regions which recorded positive growths were Central Visayas, posting the highest growth of 22.4 percent from 13.4 percent in 2010; Central Luzon, 9.0 percent from 7.3 percent; CALABARZON, 5.8 percent from 16.4 percent; and ARMM, 2.9 percent from 26.9 percent, respectively (Figure 11).
NCR continued to lead total construction investments with a 24.7 percent share in 2011, followed by CALABARZON with 14.9 percent and Central Visayas with 12.3 percent. On the other hand, ARMM had the least contribution to total investment with 0.1 percent (Figure 12).
Public Construction slumped to 31.8 percent from the previous year's growth of 4.1 percent with the decline posted in all regions. NCR and Northern Mindanao had the highest decline recorded at 41.2 percent and 41.1 percent, respectively (Figure 13).

Meanwhile, Private construction, which accounted for 77.1 percent of total investments in construction, slowed down by 4.5 percent from a double digit growth of 24.1 percent.  Central Visayas posted the highest growth at 32.9 percent from 17.3 percent in the previous year. All other regions posted positive growths except for NCR, Northern Mindanao, Cagayan Valley, MIMAROPA and SOCCSKSARGEN (Figure 14).

2.3.2 Durable Equipment
Real investments in durable equipment slowed down by 5.2 percent from the previous year’s double digit growth of 25.5 percent as cutbacks in investments were recorded in seven (7) out of the seventeen (17) regions.
Among the major island groups, Mindanao pulled down the growth in investments with a decline of 1.3 percent from a growth of 42.6 percent while NCR, Other Luzon and the Visayas slowed down its growth with 8.3 percent, 2.9 percent and 11.4 percent from 17.5 percent and 32.0 percent, and 12.6 percent, respectively.  Of the total investments, NCR contributed 2.9 percentage points, Other Luzon, 1.5 percentage points while Visayas, 0.8 percentage points (Table D). 
Among the regions, NCR, which accounted for 36.1 percent real investments in durable equipment, contributed the most to the slowed down growth with 8.3 percent from 17.5 percent recorded in 2010. This was followed by CALABARZON with 3.7 percent from 30.4 percent, Central Visayas, 15.4 percent from 2.7 percent and CAR, 6.8 percent from 17.7 percent. Other regions which posted growth in investment were: Cagayan Valley, Zamboanga Peninsula, SOCCSKSARGEN, Eastern Visayas, and Western Visayas (Figure 15 and 16).
On the other hand, the following regions posted declines in investments: Central Luzon which declined by 4.7 percent from a growth of 57.9 percent; Davao Region, 6.0 percent from 59.9 percent; Northern Mindanao, 4.0 percent from 51.5 percent, MIMAROPA, 31.2 percent from 40.3 percent; Caraga, 13.0 percent from 92.3 percent; Ilocos Region, 3.8 percent from 23.8 percent; and, Bicol, 2.9 percent from 100.4 percent (Figure 16).
2.3.3 Breeding Stocks and Orchard Development (BSOD)
The combined investments on Breeding Stocks and Orchard Development reached Php 98.7 billion in 2011, 0.3 percent lower than the Php 98.9 billion in 2010 (Table 13.1B). Other Luzon continued to lead in BSOD investments with 61.5 percent, followed by Mindanao group with 21.4 percent and the Visayas group with 17.0 percent.  Investments in the Visayas contracted by 7.5 percent from 3.5 percent in 2010, while the Mindanao group further declined from 1.8 percent to 3.3 percent.  Meanwhile, Other Luzon grew by 3.1 percent from 0.2 percent  a year ago. NCR dropped by 2.5 percent, a slight improvement from a contraction of 4.3 percent (Table E).
Among the regions, Central Luzon posted the highest growth with 11.6 percent followed by CALABARZON which grew by 5.0 percent in 2011.  Meanwhile, SOCCKSSARGEN and Davao Region exhibited turnaround growths of 1.5 percent and 0.3 percent from contractions of 1.7 percent and 1.9 percent, respectively. On the other hand, ARMM and Caraga reported the biggest drop at 12.5 percent and 12.3 percent, respectively (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.
Highest growth in IPP was posted by NCR, with 13.6 percent in 2011 from 3.3 percent in 2010. This was closely followed by ARMM, which rebounded to 12.1 percent from a decline of 15.8 percent in 2010. On the other hand, Bicol, Davao and Eastern Visayas regions declined by 7.7 percent, 6.1 percent and 2.3 percent, from negative 0.8 percent, 3.2 percent, and 6.4 percent, respectively (Figure 18).
With a measly share of 0.3 percent to GDP, IPP accelerated by 11.8 percent from the previous year's growth of 2.9 percent. Among the regions, NCR has the biggest share, accounting for 81.4 percent of the total IPP (Figure 19). 
2.3.5 Changes in Inventories (CIN)
Additions in inventories in 2011 amounted to Php 95.7 billion compared to 2010’s  additions worth Php 1.4 billion (Table 4.1.1B)
All major island groups recorded additions in 2011 with Luzon posting additions worth Php 53.2 billion, from additions of Php 40.1 billion in 2010. Meanwhile, the Visayas group recorded Php 27.5 billion additions to stocks, from the previous year’s withdrawals of Php 27.1 billion. Relatedly, the Mindanao group exhibited a turnaround, from withdrawals of Php 11.6 billion to additions amounting to Php 15.0 billion (Table F).
All regions in 2011 posted additions in their inventories. The highest additions were posted by CALABARZON at Php 14.8 billion followed by NCR at Php 12.0 billion, Central Luzon at Php 11.8 billion and Central Visayas at Php 11.1 billion (Table 4.1.1B).

Gross Regional Domestic Expenditure by Year Published

Highlights by Year Published


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