The Philippine economy posted a 6.1 percent growth in 2014, a slowdown from its 7.1 percent growth in 2013. The deceleration was due to the slower growths of Industry and Services.
The decelerated growth of Industry from 9.2 percent in 2013 to 7.9 percent in 2014 and Services from 7.0 percent to 5.9 percent contributed to the overall slowdown of the nation’s economy. Meanwhile, Agriculture, Hunting, Forestry and Fishing (AHFF) accelerated from 1.1 percent to 1.6 percent .
The major subsectors which accelerated were the following: Agriculture and Forestry from 1.2 percent in 2013 to 2.0 percent in 2014; Mining and Quarrying (MAQ) from 1.2 percent to 4.9 percent ; Transportation, Storage and Communication (TCS) from 6.0 percent to 6.2 percent ; and Public Administration and Defense, Compulsory Social Security (PAD) from 2.7 percent to 3.6 percent . On the other hand, Manufacturing decelerated from 10.3 percent to 8.3 percent ; Construction from 10.3 percent to 9.9 percent ; Electricity, Gas and Water Supply (EGWS) from 3.6 percent to 2.8 percent ; Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods from 6.2 to 5.7 percent ; Financial Intermediation from 12.6 percent to 7.2 percent ; Real Estate, Renting and Business Activities (RERBA) from 8.8 percent to 8.7 percent ; and Other Services (OS) from 5.2 percent to 3.3 percent . Meanwhile, Fishing posted a contraction from 0.7 percent in 2013 to 0.4 percent in 2014.
Services accounted for more than half or 56.6 percent of the country’s total domestic economic output. Industry, on the other hand, recorded a share of about one-third or 33.4 percent . Agriculture, Hunting, Forestry and Fishing (AHFF) comprised only 10.0 percent of the national economy.
The Philippine economy posted a 6.1 percent growth in 2014, a slowdown from its 7.1 percent growth in 2013. The deceleration was due to the slower growths of Industry and Services.
The decelerated growth of Industry from 9.2 percent in 2013 to 7.9 percent in 2014 and Services from 7.0 percent to 5.9 percent contributed to the overall slowdown of the nation’s economy. Meanwhile, Agriculture, Hunting, Forestry and Fishing (AHFF) accelerated from 1.1 percent to 1.6 percent .
The major subsectors which accelerated were the following: Agriculture and Forestry from 1.2 percent in 2013 to 2.0 percent in 2014; Mining and Quarrying (MAQ) from 1.2 percent to 4.9 percent ; Transportation, Storage and Communication (TCS) from 6.0 percent to 6.2 percent ; and Public Administration and Defense, Compulsory Social Security (PAD) from 2.7 percent to 3.6 percent . On the other hand, Manufacturing decelerated from 10.3 percent to 8.3 percent ; Construction from 10.3 percent to 9.9 percent ; Electricity, Gas and Water Supply (EGWS) from 3.6 percent to 2.8 percent ; Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods from 6.2 to 5.7 percent ; Financial Intermediation from 12.6 percent to 7.2 percent ; Real Estate, Renting and Business Activities (RERBA) from 8.8 percent to 8.7 percent ; and Other Services (OS) from 5.2 percent to 3.3 percent . Meanwhile, Fishing posted a contraction from 0.7 percent in 2013 to 0.4 percent in 2014.
Services accounted for more than half or 56.6 percent of the country’s total domestic economic output. Industry, on the other hand, recorded a share of about one-third or 33.4 percent . Agriculture, Hunting, Forestry and Fishing (AHFF) comprised only 10.0 percent of the national economy.
Eight regions record accelerated growths
Out of the country’s 17 regions, eight regional economies recorded accelerated growths from 2013 to 2014.
MIMAROPA exhibited the biggest acceleration across regions at 5.2 percentage points, from 1.3 percent in 2013 to 6.5 percent in 2014. Other regions which recorded faster growths in 2014 include: Central Luzon, 4.4 to 9.0 percent ; Davao Region, 6.7 to 9.4 percent ; Zamboanga Peninsula, 4.1 to 6.5 percent ; Northern Mindanao, 5.3 to 7.2 percent ; Western Visayas, 3.4 to 4.9 percent ; Central Visayas, 7.4 to 8.8 percent ; and Cagayan Valley, 6.2 to 6.4 percent .
On the other hand, Bicol Region posted the biggest deceleration at 3.9 percentage points, from 8.1 percent in 2013 to 4.2 percent in 2014. Other regions which slowed down in 2014 were: National Capital Region (NCR), 9.2 to 5.9 percent ; CAR, 5.4 to 3.2 percent ; SOCCSKSARGEN, 8.4 to 6.4 percent ; CALABARZON, 6.7 to 5.1 percent ; Ilocos Region, 6.8 to 5.7 percent ; ARMM, 3.8 to 3.0 percent ; and Caraga, 8.1 to 7.8 percent .
Out of the country’s 17 regions, eight regional economies recorded accelerated growths from 2013 to 2014.
MIMAROPA exhibited the biggest acceleration across regions at 5.2 percentage points, from 1.3 percent in 2013 to 6.5 percent in 2014. Other regions which recorded faster growths in 2014 include: Central Luzon, 4.4 to 9.0 percent ; Davao Region, 6.7 to 9.4 percent ; Zamboanga Peninsula, 4.1 to 6.5 percent ; Northern Mindanao, 5.3 to 7.2 percent ; Western Visayas, 3.4 to 4.9 percent ; Central Visayas, 7.4 to 8.8 percent ; and Cagayan Valley, 6.2 to 6.4 percent .
On the other hand, Bicol Region posted the biggest deceleration at 3.9 percentage points, from 8.1 percent in 2013 to 4.2 percent in 2014. Other regions which slowed down in 2014 were: National Capital Region (NCR), 9.2 to 5.9 percent ; CAR, 5.4 to 3.2 percent ; SOCCSKSARGEN, 8.4 to 6.4 percent ; CALABARZON, 6.7 to 5.1 percent ; Ilocos Region, 6.8 to 5.7 percent ; ARMM, 3.8 to 3.0 percent ; and Caraga, 8.1 to 7.8 percent .
Figure 1. Growth Rates of Regional Economies:2012-2013 and 2013-2014
(at Constant 2000 Prices, in Percent)
Meanwhile, Eastern Visayas suffered a reversal as it recorded a 2.3 percent contraction in 2014 from a 4.5 percent growth in 2013. This was mainly due to the lingering effects of Super Typhoon Yolanda which hit the region in November 2013 and was heavily felt in 2014.
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 36.3 percent . It was followed by CALABARZON at 17.2 percent and Central Luzon at
In terms of contribution to the national GDP growth rate of 6.1 percent in 2014, NCR contributed the highest at 2.1 percentage points, followed by CALABARZON with 0.9 percentage point, Central Luzon with 0.8 percentage point and Central Visayas with 0.6 percentage point. On the other hand, Eastern Visayas pulled down the growth by 0.1 percentage point.
Economic Performance of the Regions
Services boosts NCR economy
NCR’s economy grew at a slower pace from 9.2 percent in 2013 to 5.9 percent . This was due to the slower growth of Industry.
Services continued to account for the largest share of the region’s economy, contributing 81.0 percent in 2014 from 80.5 percent in 2013. Industry and AHFF accounted for 18.8 percent and 0.2 percent of the region’s total output, respectively.
Services slightly decelerated from 7.0 percent in 2013 to 6.5 percent in 2014. RERBA and TSC grew faster from 9.4 percent to 11.9 percent and from 5.1 percent to 5.6 percent , respectively. PAD also accelerated from 1.0 percent to 1.6 percent . Financial Intermediation however,decelerated from 11.7 percent to 6.4 percent . Trade and Repair also decelerated from 6.5 percent to 6.0 percent . Other Services alsoslowed down from 5.1 percent to 3.9 percent .
Industry slowed down from 19.6 percent in 2013 to 3.2 percent in 2014. The slowdown was attributed to the deceleration in Manufacturing and the decline in Construction. Manufacturing decelerated from 27.2 percent in 2013 to 5.2 percent in 2014. Construction suffered a reversal from 10.5 percent to negative 3.8 percent . EGWS eased off from 4.2 percent to 3.5 percent .
AHFF rebounded from negative 5.4 percent in 2013 to 4.1 percent in 2014. This was brought about by the turnaround in Agriculture and Forestry from negative 5.6 percent to 4.2 percent . Fishing however, suffered a reversal from 4.8 percent to negative 2.2 percent .
Services were the top contributor to the region’s economic growth, contributing 5.2 percentage points. Industry contributed 0.6 percentage point. AHFF’s contribution to the region’s economic growth was almost nil (0.008 percentage point).
CAR’s growth decelerates
CAR’s economic growth decelerated to 3.2 percent in 2014 from 5.4 percent in 2013. The deceleration was due to the slowdown in Industry and Servicesand the decline in AHFF.
Industry accounted for half of the region’s total output at 50.9 percent , followed by Services at 38.9 percent and AHFF at 10.3 percent . The percent share of Services to the total output of the region increased while the shares of Industry and AHFF decreased.
Industry slowed down from 4.1 percent in 2013 to 2.7 percent in 2014. The slowdown was due to decelerations in the following subsectors: Manufacturing, still the sector’s biggest contributor, decelerated from 1.4 percent to 0.9 percent ; Construction, from 18.4 percent to 11.2 percent ; and EGWS, from 15.4 percent to 3.7 percent . MAQ sped up from 9.3 percent to 12.4 percent .
Services grew at a slower pace from 8.4 percent in 2013 to 4.8 percent in 2014. All subsectors except Trade and PAD slowed down. Trade accelerated to 8.1 percent from 5.5 percent . PAD accelerated from 2.2 percent to 2.5 percent . Both Finance and RERBA decelerated from 16.3 percent to 7.1 percent and from 19.7 percent to 6.8 percent , respectively.
AHFF contracted from 1.3 percent in 2013 to 0.4 percent in 2014. The decline was due to the slower growths of Agriculture and Forestry, which contracted by 0.5 percent in 2014, and of Fishing, which slowed down from 2.6 percent to 2.2 percent .
Services and Industry contributed 1.8 percentage points and 1.4 percentage points, respectively. AHFF pulled down the region’s economic growth by 0.05 percentage point.
Region I’s Economy Posts 5.7 Percent Growth in 2014
The economy of Region I posted a decelerated growth of 5.7 percent in 2014 due to the slower growth of the Industry and Service sectors.
The Service sector accounted for the biggest share of the region’s output at 50.2 percent . The Industry sector followed with a share of 26.0 percent and AHFF with a share of 23.8 percent .
The Service sector slowed down from 7.5 percent in 2013 to 5.7 percent in 2014 with all its subsectors, except PAD, posting decelerated growths. The biggest deceleration was recorded by Financial Intermediation from 13.1 percent to 5.6 percent . Trade also posted a slower growth, from 8.0 percent a year ago to 7.3 percent in 2014. Similarly, RERBA, OS and TSC posted lower growths at 7.0 percent , 5.1 percent and 4.7 percent , respectively. On the other hand, PAD experienced a faster growth, from 2.0 percent in 2013 to 2.6 percent in 2014.
The Industry sector posted a decelerated growth - from 10.2 percent a year ago to 6.9 percent in 2014 as all its subsectors, except MAQ, experienced lower growths. Construction recorded the biggest deceleration of 4.4 percentage points - from 17.6 percent to 13.2 percent . Both Manufacturing and EGW also decelerated from 11.2 to 8.9 percent and 5.9 to 2.0 percent , respectively. Meanwhile, MAQ recorded an accelerated growth, from 7.7 percent in 2013 to 7.9 percent in 2014.
The performance of AHFF improved from 2013 to 2014 due to the faster growth of the Agriculture and Forestry, and Fishing subsectors which accelerated from 0.9 to 2.2 percent and 7.3 to 14.4 percent , respectively.
The Service sector recorded the biggest contribution to the region’s economic growth in 2014 at 2.8 percentage points. The Industry sector and AHFF also contributed 1.8 and 1.1 percentage points, respectively.
AHFF spurs Cagayan Valley’s GDP
Cagayan Valley’s economy accelerated to 6.4 percent in 2014 from 6.2 percent in 2013. The growth was mainly brought about by expansion in AHFF.
Services contributed the largest share to the region’s economy in 2014. It maintained its 48.6 percent share. AHFF contributed 38.4 percent in 2014, which was slightly lower than 38.7 percent in the previous year. Industry accounted for 13.0 percent of the region’s total output, which was slightly larger than 2013’s 12.7 percent .
Services posted a slower growth from 7.7 percent in 2013 to 6.3 percent in 2014. Trade grew from 6.0 percent in 2013 to 11.9 percent in 2014. OS and PAD accelerated from 3.8 percent to 4.4 percent and from 1.6 percent to 3.0 percent , respectively. The deceleration was caused by the slowdown of RERBA, Financial Intermediation, and TSC. RERBA and Financial Intermediation decelerated from 14.1 percent to 9.6 percent and from 14.0 percent to 9.4 percent , respectively. TSC also decelerated from 9.5 percent in 2013 to 4.5 percent in 2014.
AHFF accelerated from 0.1 percent in 2013 to 5.7 percent in 2014. Agriculture and Forestry, which accounts for the bulk of the sector accelerated from 0.1 percent in 2013 to 6.1 percent in 2014. Fishing sustained its growth of 0.4 percent in 2014.
Industry decelerated to 8.9 percent in 2014 from 22.7 percent in 2013. All subsectors except Manufacturing posted decelerated growths. Mining and Quarrying slowed down from 54.5 percent to 22.8 percent . Construction grew at a slower pace from 17.2 percent in 2013 to 10.1 percent in 2014. EGWS shrank by 11.5 percent in 2014 from 19.4 percent in 2013. Manufacturing, however, accelerated from 9.4 percent in 2013 to 13.8 percent in 2014.
Servicesstill contributed the largest at 3.1 percentage points to the region’s 6.4 percent growth rate in 2014. AHFF contributed 2.2 percentage points while Industry contributed 1.1 percentage points.
Industry speeds up Central Luzon’s economy
Central Luzon’s economy accelerated from 4.4 percent in 2013 to 9.0 percent in 2014. The faster growth was boosted by the accelerated growth of the Industry Sector.
Industry remained as the largest sector of the region’s economy accounting for 43.3 percent in 2014 and slightly higher than its share of 40.7 percent in 2013. The shares of Services and AHFF sectors dropped from 41.6 percent in 2013 to 39.5 percent in 2014 and 17.7 percent in 2013 to 17.2 percent in 2014, respectively.
Industry managed to grow faster from 0.9 percent in 2013 to 16.1 percent as Manufacturing rebounded from negative 1.3 percent in 2013 to 19.1 percent in 2014. Likewise,Construction accelerated from 3.9 percent to 8.4 percent . Meanwhile, EGWS slowed down from 20.6 percent to 6.3 percent . On the other hand, MAQ declined from 19.0 percent in 2013 to 17.8 percent in 2014.
Services decelerated from 7.7 percent in 2013 to 3.4 percent in 2014 due to the slower growth of all subsectors except PAD. TSC decelerated from 5.1 percent to 4.4 percent ; Trade, 6.8 percent to 1.3 percent ; Financial Intermediation, 13.1 percent to 6.9 percent ; RERBA, 10.2 percent to 3.8 percent ; and Other Services, 5.9 percent to 0.1 percent . Conversely, PAD accelerated from 4.3 percent to 5.8 percent .
AHFF accelerated from 5.4 percent in 2013 to 5.9 percent in 2014. Agriculture and Forestry grew faster from 6.1 percent to 6.8 percent while Fishing slowed down from 2.2 percent in 2013 to 1.9 percent in 2014.
Industry contributed the biggest to the region’s overall growth rate with 6.6 percentage points followed by Services with 1.4 percentage points and AHFF with 1.0 percentage point.
Industry boosts CALABARZON’s economy
CALABARZON’s economy grew at a slower pace in 2014, decelerating to 5.1 percent from 6.7 percent in 2013. Industry was the top contributor to the region’s economic growth. It contributed 62.1 percent in 2014, which was slightly higher than its 61.3 percent share in 2013. Services accounted for 32.2 percent and AHFF gave 5.7 percent .
Industry accelerated from 6.3 percent in 2013 to 6.5 percent in 2014. The growth was attributed to expansion in Manufacturing, which grew from 6.7 percent in 2013 to 7.1 percent in 2014. Construction slowed down from 8.6 percent to 2.9 percent and MAQ decelerated from 12.0 percent to 2.8 percent . EGWS rebounded from negative 2.4 percent in 2013 to 1.6 percent in 2014.
Services decelerated from 7.9 percent in 2013 to 3.8 percent in 2014. All subsectors except TSC had slower growths. Other Services dropped from 8.7 percent to 1.7 percent ; RERBA, 10.3 percent to 3.4 percent ; Financial Intermediation, 14.0 percent to 8.7 percent ; Trade, 3.7 percent to 0.9 percent ; and PAD, 6.0 percent to 5.6 percent . TSC grew by 6.3 percent in 2014.
AHFF declined by 1.3 percent in 2014 from 3.7 percent in the previous year. Agriculture and Forestry shrank from 1.8 percent in 2013 to negative 1.2 percent in 2014. Fishing also suffered a reversal from 9.5 percent in 2013 to negative 1.7 percent .
The regional growth in 2014 was due to faster growths in Industry and Services,which contributed 4.0 and 1.2 percentage points, respectively. AHFF in contrast pulled down the CALABARZON’s economy by 0.1 percentage point.
Industry, AHFF set MIMAROPA’s economic surge
MIMAROPA’s economy accelerated to 6.5 percent in 2014 from 1.3 percent in 2013 due to recoveries in Industry and AHFF.
Services still has the biggest share to region’s economic growth despite the decreaseto 42.0 percent from 42.8 percent in 2013. Industry and AHFF contributed 35.0 percent and 22.9 percent , respectively.
Service decelerated to 4.6 percent in 2014 from 7.2 percent in the previous year. The deceleration was caused by slowdown in the following subsectors: RERBA, from 9.6 percent to 1.1 percent ; Other Services, from 8.5 percent to 2.9 percent ; Financial Intermediation, from 11.4 percent to 10.0 percent ; and Trade, from 3.7 percent in 2013 to 2.8 percent in 2014. TSC and PAD however increased from 5.1 percent to 7.0 percent and from 5.1 percent to 6.0 percent , respectively.
Industry rebounded from negative 2.6 percent in 2013 to 12.2 percent in 2014 due to positive growths in three subsectors. Construction and Manufacturing accelerated from 15.6 percent to 40.0 percent and from 5.6 percent to 14.0 percent , respectively. MAQ rebounded from negative 8.7 percent in 2013 to 3.6 percent in 2014. EGWS however decelerated to 12.1 percent in 2014 from 14.6 percent in 2013.
Meanwhile, AHFF recovered from negative 3.0 percent in 2013 to 2.1 percent in 2014. Agriculture and Forestry accelerated to 3.9 percent from 0.7 percent . Fishing improved from negative 11.9 percent to negative 2.8 percent .
Industry was the top contributor to the region’s economic growth, contributing 4.1 percentage points. Services and AHFF contributed 2.0 percentage points and 0.5 percentage point, respectively.
Bicol’s growth slower in 2014
Bicol’s economic growth was slower in 2014, registering only 4.2 percent compared to 8.1 percent in 2013. Performance of major economic sectors eased out.
Services accounted for the biggest share to the region’s economy at 56.6 percent . AHFF’s share was at 23.7 percent and Industry, 19.8 percent . AHFF’s share decreased by 0.7 percentage point in 2014.
Servicesdecelerated to 5.2 percent in 2014 from 9.0 percent in the previous year. The deceleration was caused by slowdown in the following subsectors: RERBA, from 17.2 percent to 2.5 percent ; Financial Intermediation,from 14.7 percent to 10.2 percent ; Other Services, from 4.1 percent to 1.1 percent ; TSC, from 5.2 percent to 3.7 percent ; and Trade, from 11.5 percent to 10.0 percent . PAD however accelerated to 6.3 percent from 4.4 percent during the previous year.
AHFF decelerated to 0.9 percent in 2014 from 4.4 percent in 2013. Agriculture and Forestry posted slower growth of 1.8 percent compared to 5.4 percent in 2013. AHFF’s slowdown was due to Fishing, which plunged to negative 1.3 from 2.0 percent in 2013.
Industry decelerated to 5.6 percent in 2014 from 10.8 percent in the previous year. Manufacturing swelled from 9.6 percent in 2013 to 19.0 percent in 2014. EGWS accelerated to 13.7 percent from 12.1 percent . Construction however slackened from 15.1 percent to 4.5 percent while MAQ declined further from 5.1 percent to 25.0 percent .
Services was the top contributor to the region’s economic growth, contributing 2.9 percentage points. Industry and AHFF contributed 1.1 percentage points and 0.2 percentage point, respectively.
Western Visayas’ economy accelerates
Western Visayas’ economic growth accelerated to 4.9 percent in 2014 from 3.4 percent in 2013. The growth was attributed to the improved performances of AHFF, Industry and Services.
Services sustained its largest share to the region’s economy with 57.6 percent share in 2014. AHFF and Industry contributed 21.9 percent and 20.5 percent shares, respectively. Share of Industry increased while AHFF’s share decreased.
Services accelerated by 0.3 percentage point from 4.5 percent a year ago to 4.8 percent in 2014. Among its subsectors, only TSC and PAD recorded faster growth in 2014 compared to 2013. TSC posted a faster growth from 5.0 percent in 2013 to 8.7 percent in 2014 while PAD posted an accelerated growth from 4.1 percent to 5.8 percent . Moreover, RERBA rebounded from negative 3.6 percent to 2.1 percent On the other hand, Financial Intermediation slowed down from 15.2 percent in 2013 to 8.4 percent in 2014; Trade and Repair decelerated from 6.1 to 4.0 ; and Other Services decelerated from 2.5 to 1.7.
AHFF improved from negative 3.5 percent in 2013 to negative 2.4 percent in 2014. Agriculture and Forestry improved from negative 3.4 percent to negative 1.5 percent . Fishing however dropped further from negative 4.0 percent in 2013 to negative 5.2 percent in 2014.
Industry accelerated to 14.0 percent in 2014 from 9.6 percent in 2013. The expansion was sustained by increases in the following subsectors: Construction, from 13.3 to 17.3 percent ; EGWS,from 3.6 to 13.9 percent ; and MAQ, from negative 5.1 percent to 15.2 percent . Reversal in MAQ was due to increased coal production. Manufacturing however slowed down from 10.8 percent to 10.3 percent .
Services was the top contributor to the region’s economic growth, contributing 2.8 percentage points. Industry contributed 2.6 percentage points. AHFF however pulled down the region’s GDP by 0.6 percentage point.
Central Visayas posts 8.8 percent growth
Central Visayas’ economic growth accelerated to 8.8 percent from 7.4 percent in the previous year. The expansion was due to sustained growthsin Services and Industry.
Services posted the largest share to the region’s economy with a 54.6 percent share. Industry and AHFF contributed 39.4 percent and 6.0 percent , respectively. Industry’s share has increased while Services and AHFF decreased from 2013 to 2014.
Services slowed down from 6.9 percent in 2013 to 6.6 percent in 2014. PAD grew by 6.9 percent in 2014 from 5.3 percent in the previous year. Trade and Other Services increased by 7.2 percent and 4.1 percent from 5.7 percent and 3.5 percent , respectively. The other subsectors however slowed down in 2014: Financial Intermediation, from 13.5 percent to 9.8 percent ; TSC, from 9.2 percent to 7.4 percent ; and RERBA, from 7.1 percent to 5.8 percent .
Industry accelerated to 13.9 percent from 9.5 percent in the previous year. Construction swelled up to 24.7 percent from 2.2 percent . Manufacturing and EGWS grew albeit at a slower pace from 14.0 percent to 10.0 percent and from 3.8 percent to 1.4 percent , respectively. MAQ reversed from negative 1.7 percent to 20.2 percent due to increased production of nonmetallic minerals.
AHFF dropped to negative 2.6 percent from 0.3 percent in the previous year. Agriculture and Forestry contracted from 0.9 percent in 2013 to 0.2 percent in 2014 due to the decline in production of palay, corn, coconut, and chicken eggs. Fishing also declined from 2.9 percent to 14.8 percent .
Industry was the biggest contributor to Central Visayas’ economic growth at 5.2 percentage points. Services contributed 3.7 percentage points. AHFF meanwhile pulled down the region’s growth by 0.2 percentage point.
Eastern Visayas’ economy contracts
Eastern Visayas’ economy contracted from 4.5 percent in 2013 to 2.3 percent in 2014. Industry and Services accounted for 41.4 percent and 40.7 percent , respectively, of the region’s GDP. AHFF posted only 18.0 percent share. Only Services’ share to the region’s GDP increased in 2014.
Industry plummeted to 2.8 percent in 2014 from 13.9 percent in the previous year. Its growth was pulled down by Manufacturing, the largest Industry subsector, which shrank by 16.0 percent in 2014 from 33.5 percent in 2013. EGWS improved from negative 7.5 percent to negative 0.2 percent . Construction accelerated to 30.8 percent from 9.8 percent due to intensified reconstruction activities. MAQ rebounded from negative 24.3 percent to 18.2 percent .
AHFF further declined by 12.8 percent in 2014 from negative 6.6 percent in 2013. Agriculture and Forestry sank to negative 11.2 percent from 4.5 percent . Fishing fell further to negative 18.4 percent from negative 13.3 percent . The sector’s contraction was attributed to damages to major crops, especially coconut, brought about by Super Typhoon Yolanda and the ongoing rehabilitation in aquaculture.
Services however accelerated to 3.6 percent in 2014 from 1.7 percent in 2013. All subsectors except Trade posted positive growths. RERBA rebounded from negative 18.3 percent to 4.4 percent . PAD accelerated to 5.3 percent from 3.8 percent . Financial Intermediation and TSC slowed down from 14.1 percent to 10.6 percent and from 8.0 percent to 6.0 percent , respectively. Other Services grew by 0.3 percent from 0.6 percent . Trade however contracted by 2.9 percent in 2014 from 6.8 percent in 2013.
Declines in AHFF and Industry pulled down the region’s GDP by 2.6 percentage points and 1.2 percentage points, respectively. Services however contributed 1.4 percentage points.
Zamboanga Peninsula’s economy accelerates as Industry and Agriculture sectors expand
Zamboanga Peninsula’s economy accelerated from 4.1 percent in 2013 to 6.5 percent in 2014. This was brought about by the expanded growths of the Industry and Service sectors.
The Service sector remained the largest contributor to the region’s economy although its share slightly decreased from 43.5 percent in 2013 to 42.9 percent in 2014. Meanwhile, the contributions of Industry and AHFF to the total domestic output were 36.3 percent and 20.8 percent , respectively.
The growth of the Service sector decelerated from 5.3 percent in 2013 to 5.0 percent in 2014. This was largely due to the slowdown in Financial Intermediation and Other Services. Financial Intermediation dropped from 16.9 percent in 2013 to 4.4 percent in 2014. Other Services declined from 5.8 percent in 2013 to 1.0 percent in 2014. On the other hand, TSC recorded higher growth in 2014 as compared to 2013, from 2.6 percent to 7.8 percent . Trade and Repair accelerated from 2.6 percent in 2013 to 6.7 percent in 2014. RERBA also outpaced its previous performance as it grew from 4.0 percent the previous year to 5.2 percent in 2014. PAD likewise recorded expansion in 2014, from 5.4 percent to 6.3 percent .
The Industry sector brightened the region’s performance as it increased from 4.8 percent in 2013 to 10.7 percent in 2014. Manufacturing, which accounted for 27.1 percent of the region’s total economy, rebounded from negative 0.1 percent in 2013 to 9.8 percent in 2014. Likewise, EGWS accelerated from 1.9 percent in 2013 to 2.9 percent in 2014. Meanwhile, Mining and Quarrying further declined from negative 4.9 percent in 2013 to negative 43.4 percent in 2014. Construction also registered a decelerated growth from 32.9 percent in 2013 to 23.0 percent in 2014.
Growth in the AHFF sector accelerated from 0.8 percent in 2013 to 2.8 percent in 2014. Agriculture and Forestry, which accounted for 14.0 percent of the region’s domestic output, accelerated from 2.4 percent in 2013 to 3.0 percent in 2014. Fishing rebounded from negative 2.4 percent in 2013 to 2.4 percent in 2014.
Industry contributed the largest to Zamboanga Peninsula’s economic performance in 2014 with a contribution of 3.8 percentage points to the 6.5 percent growth. Services contributed 2.2 percentage points, while AHFF contributed 0.6 percentage point to the region’s total economic growth.
Industry, Services thrust NorMin growth
Northern Mindanao’s economy grew by 7.2 percent in 2014 from 5.3 percent in 2013. The growth was attributed to increases in Industry and Service.
Services remains to have the biggest share to the region’s GDP at 42.0 percent . Industry and AHFF contributed 34.6 percent and 23.4 percent , respectively.
Services sped up from 5.5 percent in 2013 to 8.0 percent in 2014. Trade expanded from 3.9 percent to 10.2 percent . RERBA swelled to 12.0 percent from 7.7 percent . Other Services and PAD increased by 6.0 percent and 6.2 percent from 4.4 percent and 5.3 percent , respectively. Finance and TSC however decelerated to 7.3 percent and 4.4 percent from 9.7 percent and 6.6 percent , respectively.
Industry accelerated to 9.0 percent in 2014 from 6.8 percent in the previous year. The increase was attributed to growth in Construction, which soared to 29.3 percent from 5.8 percent . MAQ also accelerated to 10.1 percent from 3.2 percent . Manufacturing however experienced a slowdown from 9.3 percent to 5.8 percent . EGWS shrank by 0.3 percent from negative 0.2 percent .
AHFF’s growth was still at 3.2 percent in 2014. Agriculture and Forestry accelerated to 3.7 percent from 1.9 percent due to increased crop production. Fishing however shrank by 0.9 percent from 13.0 percent due to decrease in tiger prawn production.
Services was the top contributor to the region’s GDP, contributing 3.4 percentage points. Industry and AHFF contributed 3.1 percentage points and 0.8 percentage point, respectively.
Davao Region posts fastest growth
Davao Region’s econony recorded the fastest growth in the country in 2014. The region’s GDP accelerated to 9.4 percent from 6.7 percent in the previous year.
Services’ share to the region’s total output remained the highest at 52.2 percent despite the slight decrease from 52.8 percent in 2013. Industry contributed 33.3 percent , which was higher than last year’s 31.8 percent . AHFF contributed 14.4 percent , which was 15.4 percent in the previous year.
Services accelerated to 8.3 percent in 2014 from 6.6 percent in the previous year. The acceleration was caused by increases in the following subsectors: TSC, from 3.9 percent to 8.5 percent ; Trade, from 5.6 to 8.6 percent ; Other Services, from 4.7 to 5.8 percent ; and PAD, from 4.3 to 5.2 percent . RERBA’s growth remained at 10.4 percent . Finance however slowed down from 14.3 percent to 9.8 percent .
Industry decelerated to 14.7 percent in 2014 from 16.0 percent in 2013 due to slower growths in Construction and EGWS. Construction dropped from 18.9 percent to 6.4 percent . EGWS decelerated to 11.8 percent from 14.8 percent . Manufacturing and MAQ however increased by 18.8 percent 12.8 percent from 14.8 percent and 12.2 percent , respectively.
AHFF rebounded from negative 8.1 percent in 2013 to 2.4 percent in the previous year. The rebound was attributed to the recovery of Agriculture and Forestry from negative 8.8 percent to 4.7 percent . Fishing however suffered a reversal from 2.7 percent to negative 27.9 percent .
Industry was the top contributor to the region’s GDP with 4.7 percentage points. Services and AHFF contributed 4.4 percentage points and 0.4 percentage point, respectively.
SOCCSKSARGEN’s economy continues to expand albeit at a slower pace
The economy of SOCCSKSARGEN Region continued to expand though at a slower pace from 8.4 percent in 2013 to 6.4 percent in 2014. The deceleration was attributed to the slower growths posted by the Industry and Service sectors.
The Service sector accounted for the largest share of the regional economy at 37.7 percent in 2014, slightly higher than its 37.5 percent share in 2013. The share of the Industry sector also expanded from 34.0 percent in 2013 to 34.3 percent in 2014. AHFF comprised 27.9 percent of the region’s total economic output in 2014, lower than its 28.4 percent share in 2013.
The Service sector’s overall performance decelerated from 9.5 percent in 2013 to 7.1 percent in 2014 as four of its six subsectors registered slowdowns. Financial Intermediation slid from 14.7 percent in 2013 to 8.8 percent in 2014; Trade and Repair slowed down from 12.8 to 8.3 percent ; TCS posted slower growth from 6.0 to 5.7 percent ; and Other Services also decelerated from 8.5 to 2.9 percent . On the other hand, RERBA accelerated from 7.5 percent to 11.5 percent while PAD grew faster from 6.9 percent in 2013 to 7.5 percent in 2014.
The Industry sector posted a decelerated growth, from 11.6 percent in 2013 to 7.4 percent in 2014, as three of its four subsectors experienced slower growths in 2013. Construction decelerated from 17.9 percent in 2013 to 5.4 percent in 2014; EGWS slowed down from 11.2 to 5.4 percent ; and Manufacturing, which accounted for the bulk of the Industry sector, from 10.1 to 8.3 percent . Mining and Quarrying managed to accelerate from 4.4 percent in 2013 to 4.5 percent in 2014.
AHFF accelerated from 3.5 percent in 2013 to 4.4 percent in 2014 brought by the expansion of Agriculture and Forestry and improved performance of Fishing. Fishing accelerated from 0.1 percent in 2013 to 15.4 percent in 2014 while Agriculture and Forestry further expanded from 4.3 percent in 2013 to 2.2 percent in 2014.
The Service sector was the top contributor to the region’s economic growth in 2014 with a contribution of 2.7 percentage points followed by the Industry sector which chipped in 2.5 percentage points. AHFF contributed 1.3 percentage points to the total GRDP growth of the region in 2014.
AHFF, Services strain Caraga’s growth
Caraga’seconomic growth slowed down from 8.1 percent in 2013 to 7.8 percent in 2014. The slowdown was attributed to downturns in AHFF and Services.
Servicesaccounted for the biggest share to the region’s GDP at 45.7 percent . Industry and AHFF’s shares were at 34.7 percent and 19.6 percent , respectively.
Services decelerated to 8.7 percent in 2014 from 9.1 percent in 2013. The deceleration was due to slowdown in the following subsectors: Finance, from 11.5 percent to 6.0 percent ; Other Services, from 6.5 percent to 1.9 percent ; and RERBA, from 6.5 percent to 5.4 percent . TSC however grew by 16.6 percent from 14.0 percent . Trade and PAD posted faster growths from 6.4 percent to 7.9 percent and from 4.1 percent to 5.0 percent , respectively.
Industry accelerated to 11.1 percent in 2014 from 7.3 percent in the previous year. Construction and MAQ expanded from 8.7 percent to 23.5 percent and from 7.1 percent to 7.9 percent , respectively. Manufacturing rebounded from negative 2.2 percent to 12.7 percent . EGWS however plummeted to 6.6 percent from 24.7 percent in the previous year.
AHFF decelerated to 0.6 percent in 2014 from 7.2 percent in 2013. Agriculture and Forestry eased off from 10.0 percent to 0.6 percent . Fishing however recovered from negative 6.1 percent in 2013 to 0.5 percent in 2014.
Servicesand Industry contributed 4.0 percentage points and 3.7 percentage points to the region’s GDP, respectively. AHFF added 0.1 percentage point.
ARMM’s economy loses pace
ARMM’s economy slowed down from 3.8 percent in 2013 to 3.0 percent in 2014. The slowdown was due to the contraction of AHFF and the deceleration of Services.
AHFF continued to account for the largest share to the region’s total output at 58.8 percent . Servicesand Industry’s shares were at 34.6 percent and 6.6 percent , respectively.
AHFF suffered a reversal from 2.5 percent in 2013 to negative 0.9 percent in 2014. This was due to the decline in Agriculture and Forestry from 2.5 percent to negative 2.2 percent . Fishing however accelerated to 3.0 percent from 2.4 percent .
Services decelerated to 5.6 percent in 2014 from 7.3 percent in the previous year. The deceleration was caused by the following subsectors: Finance, from 18.7 percent to 11.7 percent ; TSC, from 8.0 percent to 4.0 percent ; and Other Services, from 7.3 percent to negative 3.7 percent . Trade accelerated to 8.6 percent from 6.3 percent in the previous year. RERBA and PAD grew faster from 3.7 percent to 7.8 percent and from 7.1 percent to 7.7 percent , respectively.
Industry rebounded from negative 2.7 percent in 2013 to 32.9 percent in 2014. Construction and MAQ skyrocketed from 1.3 percent to 144.6 percent and from 2.6 percent to 51.3 percent . Manufacturing however decelerated to 3.0 percent from 3.9 percent . EGWS improved from negative 7.4 percent to negative 3.2 percent in 2014.
Services and Industry contributed 1.9 percentage points and 1.7 percentage points to the region’s GDP. AHFF however pulled down the growth by 0.6 percentage point.
Economic Performance by Industry
AHFF posts faster growth
AHFF accelerated to 1.6 percent in 2014 from 1.1 percent in the previous year. The sector’s share to total GDP remained the smallest at 10.0 percent , lower than its 10.5 percent share in 2013.
In 2014, nine regions exhibited improved performance, two regions posted deceleration, four suffered contraction, one further declined and one maintained growth in the AHFF sector. Ilocos Region, Cagayan Valley, Central Luzon, Zamboanga Peninsula, and SOCCSKSARGEN posted accelerated growth while Bicol and Caraga posted decelerations. NCR, MIMAROPA, and Davao Region recovered from their decline in 2013 while Western Visayas improved despite the contraction. CAR, CALABARZON, Central Visayas, and ARMM however suffered contraction. Eastern Visayas further declined. Meanwhile, Northern Mindanao maintained the same growth in 2014.
Central Luzon posted the fastest growth among the 17 regions in 2014 at 5.9 percent . It was followed by Cagayan Valley at 5.7 percent and Ilocos Region at 4.6 percent .On the other hand, Eastern Visayas posted the biggest contraction at 12.8 percent .
Figure 2.Growth Rates of Regional Economies in the AHFF Sector:
2012-2013 and 2013-2014 (at Constant 2000 Prices, in Percent)
Central Luzon continued to account for the largest share of the country’s AHFF output with a 16.0 percent share in 2014. It was followed by CALABARZON with 9.8 percent and Northern Mindanao with 8.7 percent . NCR continued to account for the smallest share to AHFF at 0.7 percent .
The top contributors to AHFF’s growth in 2014 were Central Luzon and Cagayan Valley, contributing 0.9 percentage point and 0.4 percentage point, respectively
AHFF contributed 0.2 percentage point to GDP growth of 6.1 percent in 2014, slightly higher than its contribution of 0.1 percentage point in 2013.
Industry decelerates
Industry slowed down from 9.2 percent in 2013 to 7.9 percent in 2014. The sector accounted for 33.4 percent of the country’s total GDP.
Among the 17 regions in the country in 2014, seven regions recorded accelerated growths, two regions rebounded, seven posted decelerations and one region suffered a contraction. Central Luzon, CALABARZON, Western Visayas, Central Visayas, Zamboanga Peninsula, Northern Mindanao and Caraga posted accelerated growths while NCR, CAR, Ilocos Region, Cagayan Valley, Bicol, Davao Region, and SOCCSKSARGEN exhibited decelerated growths. While the AHFF growth rates of MIMAROPA and ARMM rebounded, that of Eastern Visayas contracted.
CALABARZON accounted for the bulk of the country’s total Industry output at 31.9 percent in 2014. It was followed by NCR with 20.4 percent and Central Luzon with 12.1 percent . ARMM continued to have the smallest share to Industry at 0.1 percent .
CALABARZON and Central Luzon were top contributors to the growth of Industry in 2014 at 2.1 percentage points and 1.8 percentage points, respectively. Eastern Visayas however pulled down Industry’s growth by 0.1 percentage point.
Industry contributed 2.6 percentage points to the GDP growth of 6.1 percent in 2014, lower than its contribution of 3.0 percentage points in 2013.
Figure 3.Growth Rates of Regional Economies in the Industry Sector:
2012-13 and 2013-14 (at Constant 2000 Prices, in Percent)
Services slows down
Services posted a decelerated growth of 5.9 percent in 2014, lower than its 7.0 percent growth in 2013. The sector accounted for more than half or 56.6 percent of the country’s GDP in 2014.
Of the 17 regions in the country, four recorded accelerated growths while the rest posted decelerations. Western Visayas, Eastern Visayas, Northern Mindanao and Davao Region posted accelerated growths. NCR, CAR, Ilocos Region, Cagayan Valley, Central Luzon, CALABARZON, MIMAROPA, Bicol, Central Visayas, Zamboanga Peninsula, SOCCSKSARGEN, Caraga and ARMM however experienced decelerated growths in Services in 2014.
NCR remained to account for the biggest share to the total output of Services at 52.0 percent . CALABARZON ranked far second with a 9.8 percent share followed by Central Luzon at 6.5 percent . ARMM however had the smallest share at 0.4 percent in 2013.
Figure 4.Growth Rates of Regional Economies in the Service Sector:
2012-2013 and 2013-2014 (at Constant 2000 Prices, in Percent)
NCR remained the top contributor to the 5.9 percent growth of Services in 2014, contributing 3.4 percentage points. The remaining 16 regions posted less than 1.0 percentage point to the overall growth with ARMM contributing the least at 0.02 percentage point.
Among the three major industries, Services contributed the biggest share to the overall GDP growth at 3.4 percentage points in 2014, lower than its 4.0 percentage point contribution in 2013.
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 by 4.3 percent , from PhP68,741.00 in 2013 to PhP 71,726.00 in 2014.
NCR posted the highest per capita GRDP at PhP203,132.00,which was nearly three times the national average and 4.1 percent higher than 2013’s. Aside from NCR, CALABARZON and CAR posted per capita GRDP of PhP86,683.00 and PhP73,908.00, respectively, which were also higher than the national average. ARMM however had the lowest per capita GRDP at PhP14,607.00.
Among the island groups, Luzon (excluding NCR) recorded the highest per capita GDP. Its average per capita GDP was PhP59,784.00 in 2014, which is 3.9 percent higher than its 2013 per capita of PhP57,406.00. Meanwhile, Mindanao posted the biggest increase in per capita GDP.Its average per capita GDP increased by 5.6 percent from PhP 41,273.00 in 2013 to PhP43,579.00 in 2014.
Figure 4.GRDP Per Capita Index with Reference to the National Average
2013 and 2014 (at Constant 2000 Prices)
Davao Region posted the highest increase at 7.6 percent from PhP 54,188 in 2013 to PhP 58,291 in 2014. Central Luzon, Central Visayas, and Caraga also posted high increases at 7.1 percent , 7.0 percent , and 6.4 percent , respectively. Eastern Visayashowever declined by 3.5 percent .
NCR posted the highest per capita index relative to the national average at 283.2 with CALABARZON a distant second at 120.9 and CAR, third at 103.0. The rest had indices lower than the national average. ARMM was lowest with an index of 20.4.
Economic Performance by Island Group
The economies of Luzon and Mindanao island groups accelerated while that of Visayas remained the same in 2014.
Luzon’s economic performance slows down
Luzon’s economy (excluding NCR) accelerated from 5.9 percent in 2013 to 6.1 percent in 2014.
The Luzon island group continued to have the largest share to the Philippine economy at 36.8 percent in 2014.
Luzon contributed 2.3 percentage points to the country’s GDP growth of 6.1 percent in 2014, slightly higher than its contribution of 2.2 percentage points in 2013.
Visayas’ economy sustains growth
The economy of the Visayas island group maintained its growth of 5.6 percent in 2014.
The share of the Visayas island group to the country’s economy decreased from 12.5 percent in 2013 to 12.4 percent in 2014.
The Visayas island group again contributed 0.7 percentage point to the country’s GDP growth in 2014.
Mindanao’s economy accelerates
The economy of Mindanao accelerated from 6.3 percent in 2013 to 7.4 percent in 2014.
The Mindanao island group’s share to the national output increased from 14.3 percent in 2013 to 14.4 percent in 2014.
Mindanao contributed 1.1 percentage points to the country’s GDP growth in 2014, higher than its 0.9 percentage point contribution in 2013.
Figure 6.Contribution to GDP Growth by Major Island Group:
2012-13 and 2013-14 (at Constant 2000 Prices, in Percent)
Inflation
Caraga posts highest inflation
Caraga posted the highest inflation rate year-on-year among regions of the country at 7.8 percent in 2014. It was followed by Cagayan Valley with 6.1 percent inflation rate and Eastern Visayas with 5.9 percent .
Among the 17 regions, ARMM continued to register the highest Implicit Price Index (IPIN) for the last three years reaching 209.5 index points in 2014. On the other hand, CALABARZON posted the lowest IPIN at 163.7 index points in 2014.
