While Philippine economy posted 7.2% in 2013, MIMAROPA economy decelerated to 1.7%

Philippine economy posts 7.2 percent growth

The Philippine economy posted a 7.2 percent growth in 2013, outpacing its 6.8 percent growth in 2012, as favorable business environment paved the way for the production of more goods and services cushioning the negative effects of the natural disasters that hit the country during the year.

The accelerated growth of Industry from 7.3 percent in 2012 to 9.3 percent in 2013 and the sustained growth of Services from 7.4 percent to 7.2 percent fueled the faster growth of the economy. Agriculture, Hunting, Forestry and Fishing (AHFF) was not able to surpass its minimal 2.8 percent growth in 2012, posting a measly 1.1 percent growth in 2013, making its contribution to the economy’s growth almost insignificant.

The major subsectors that contributed to the growth were the following: Manufacturing which grew by 10.3 percent; Financial Intermediation, 12.6 percent; Real Estate, Renting and Business Activities (RERBA), 8.7 percent; Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods, 5.7 percent; and, Public Administration and Defense; Compulsory Social Security (PAD), 3.8 percent.

Bicol Region’s economy posts fastest growth in 2013

Bicol Region’s economy recorded the fastest growth among the country’s 17 regions in 2013. It grew by 9.4 percent in 2013, surpassing its growth of 6.9 percent in 2012. It was followed by: National Capital Region (NCR) with 9.1 percent; SOCCSKSARGEN, 8.4 percent; Caraga, 7.8 percent; and Ilocos Region, 7.7 percent.

MIMAROPA Region IVB

MIMAROPA posted lowest growth rate

On the other hand, the economy of MIMAROPA posted the lowest growth rate at 1.7 percent in 2013, slower than its 4.8 percent in 2012.  The Autonomous Region in Muslim Mindanao (ARMM) was second lowest with 3.6 percent in 2013 – an improvement from its 1.1 percent growth in 2012. Western Visayas closely followed with 4.1 percent growth in 2013 which is relatively lower as compared to its 7.7 percent growth in 2012.

Growth Rates of Regional Economies:
2011-12 and 2012-13, at Constant 2000 Prices

NCR continues to account for the largest share of the national economy

NCR continued to have the largest share of the country’s total economic output with a 36.3 percent share in 2013, slightly higher than its 35.7 percent share in 2012. It was followed by CALABARZON with a share of 17.4 percent and Central Luzon with 9.0 percent. On the other hand, ARMM accounted for the lowest share to the country’s Gross Domestic Product (GDP) at 0.7 percent.

In terms of contribution to the national GDP growth rate of 7.2 percent in 2013, NCR contributed the highest, at 3.2 percentage points; followed by CALABARZON with 1.2 percentage points; and Central Visayas with 0.5 percentage point. On the other hand, ARMM and MIMAROPA had less than 0.1 percentage point contribution.

Economic Performance

CALABARZON’s  economy decelerated as its Industry sector slowed down

The economy of CALABARZON registered a decelerated growth of 6.7 percent in 2013, slightly lower than its 7.3 percent growth in 2012. The steady performance of Services and improved growth of AHFF cushioned the effect of the slower growth of Industry sector to the region’s performance.

Industry accounted for the largest share of the region’s total output at 61.1 percent, followed by the Service sector at 32.7 percent and AHFF at 6.1 percent.

Industry slowed down from a 7.3 percent growth in 2012 to a 6.3 percent growth in 2013 due to the slower growth of Construction and the contraction of EGWS. From a double digit growth in 2012, Construction decelerated to 8.1 percent in 2013.  EGWS suffered a reversal - from a 3.9 percent growth in 2012 to a 1.8 percent contraction in 2013. On the other hand, Mining and Quarrying soared from 2.0 percent in 2012 to 12.0 percent in 2013. Manufacturing also posted a faster growth - from 5.9 percent in 2012  to 6.7 percent in 2013.

The Service sector maintained its 8.1 percent growth in 2013. Financial Intermediation, RERBA and Other Services registered double digit expansions from 2012 to 2013: Financial Intermediation from 11.1 percent to 14.0 percent; RERBA, from 9.5 percent to 10.3 percent; and Other Services, from 6.1 percent to 11.8 percent. Other subsectors posted decelerated growths: TSC, from 7.8 percent to 6.1 percent; Trade and Repair, from 7.3 percent to 3.1 percent; and PAD, from 6.6 percent to 4.0 percent.

The AHFF sector accelerated from 2.5 percent to 3.8 percent in 2013 due to the increase in fish production. Fishing posted an accelerated growth from 3.9 percent in 2012 to 9.5 percent in 2013. However, Agriculture and Forestry slowed down slightly from 2.0 percent to 1.9 percent.

Industry was the biggest contributor to the growth of CALABARZON’s economy in 2013 with a 3.9 percentage point contribution to the 6.7 percent growth of the region. Services accounted for 2.6 percentage points of the growth in 2013 while AHFF contributed the least at 0.2 percentage point.

MIMAROPA’s economy slowed down to 1.7 percent in 2013

The growth of MIMAROPA’s economy slowed down from 4.8 percent in 2012 to 1.7 percent in 2013. Contractions in AHFF and Industry sector weighed heavily on the region’s economy.

Services remained the biggest contributor to MIMAROPA’s economy with a 43.2 percent share in 2013, slightly higher than its 40.5 percent share a year ago. Industry followed, accounting for 32.8 percent and the AHFF contributed the least at 24.0 percent.

Services grew by 8.4 percent in 2013, slightly slower than the 8.9 percent growth registered in 2012. Financial Intermediation maintained its fast pace posting a 12.8 percent growth, still a tad higher than the 12.3 percent performance in 2012. Other Services grew by 12.9 percent in 2013 from a 4.9 expansion the previous year. Meanwhile, the remaining four subsectors recorded slowdowns with RERBA posting the biggest deceleration shaving off 6.0 percentage points from its 15.6 percent growth in 2012.

Industry contracted by 2.8 percent in 2013, a reversal from its 4.1 percent growth in 2012. The 8.6 percent slump in Mining and Quarrying, which accounted for 65.3 percent of the sector’s output, pulled down Industry’s overall growth.  Growth in Manufacturing decelerated to 5.6 percent in 2013, less than half of the 14.6 percent expansion posted in 2012. Construction, on the other hand, continued to accelerate with a 13.8 percent growth, way faster than the 3.2 percent acceleration in the previous year. In the same manner, EGWS surged by 15.5 percent, more than twice its pace in 2012.

AHFF continued its decline by contracting further by 3.0 percent in 2013, from its 0.3 percent decline recorded a year ago. The 0.7 percent growth in Agriculture and Forestry was not enough to compensate for the 11.9 percent slump in Fishery to keep AHFF afloat.

Services contributed 3.4 percentage points to the growth of the regional economy but this was chipped off by the negative 1.0 percentage point and negative 0.7 percentage point contributions of Industry and AHFF, respectively.

Read more at Philippine Statistics Authority