Bicol registers ‘fastest’ growth among 17 regions

The once-impoverished sectors of the economy are fast catching up, with the economy of the Bicol provinces, which used to be among the poorest in the country, recording the fastest growth among the regions last year, according to the Philippine Statistics Authority. 

Out of the country’s 17 regions, six recorded accelerated growths from 2014 to 2015, nine posted decelerated growths, while one suffered a contraction, according to the PSA data.

The PSA figures showed that the Bicol region grew by 8.4 percent, much higher than the 5.8-percent gross domestic product (GDP) increase for the entire country last year.

Bicol’s spurt surpassed its growth of 4.3 percent in 2014. It was followed by Western Visayas and the Davao region, which grew by 8.3 percent and 7.9 percent, respectively, from 2014 to 2015.

On the other hand, the PSA figures showed that the economy of the Autonomous Region in Muslim Mindanao (ARMM) declined from a growth of 3.0 percent in 2014 to a contraction of 0.8 in 2015.

Aside from having the highest growth rate, Bicol also exhibited the biggest acceleration in its GDP of a 4.1-point increase over a year, PSA said.

Other regions that recorded faster growths in 2015 included Western Visayas, from 5.2 to 8.3 percent; Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon), 5.1 to 5.9 percent; NCR (National Capital Region), 5.9 to 6.6 percent; Zamboanga Peninsula, 6.6 to 7.2 percent; and CAR (Cordillera Administrative Region), 3.3 to 3.7 percent.

The economy of Eastern Visayas also rebounded from a contraction of 2.4 percent in 2014 to a growth of 3.9 percent in 2015.

But the Mindoros (Occidental and Oriental), Marinduque, Romblon, and Palawan — collectively known as Mimaropa — posted the biggest deceleration at 6.6 percentage points, from 8.3 percent in 2014 to 1.7 percent in 2015.

Other regions that slowed down in 2015 were Caraga (made up of Agusan del Norte, Agusan del Sur, Surigao del Norte, Surigao del Sur and Dinagat Island), from 9.4 to 4.2 percent; Central Luzon, 9.3 to 5.3 percent; Cagayan Valley, 7.2 to 3.7 percent; Central Visayas, 7.8 to 4.8 percent; Soccsksargen (South Cotabato, Cotabato, Sultan Kudarat, Saranggani and General Santos), 6.2 to 3.3 percent; Northern Mindanao, 7.1 to 5.5 percent; Davao, 9.3 to 7.9 percent; and Ilocos, 6.4 to 5.0 percent.

NCR continued to have the largest share of the country’s GDP at 36.5 percent. It was followed by Calabarzon, with a 17.2-percent share; and Central Luzon, with a 9.3-percent share; ARMM accounted for the smallest share of the national economy at 0.7 percent.

In terms of contribution to the national GDP growth rate of 5.9 percent in 2015, NCR contributed the highest at 2.4 percentage points, followed by Calabarzon, with 1.0 percentage point and Central Luzon, with 0.5 percentage point; ARMM, on the other hand, pulled down the national growth rate by 0.01 percentage point.

The real per-capita GDP of NCR was nearly three times the national per-capita GDP.

The average real per-capita GDP of the Philippines increased from P71,790 in 2014 to P74,770 in 2015 or by 4.2 percent.

NCR posted the highest per-capita GDP at P219,114 in 2015, nearly three times the national average, and 7.8 percent higher than in 2014.

Aside from NCR, two other regions, Calabarzon and CAR also posted real per-capita GDP higher than the national average at P92,285 and P74,845, respectively. Meanwhile, ARMM had the lowest real per-capita GDP among the regions at P13,695 in 2015.

PSA Regional Director Wilma Perante said Bicol’s economy accelerated by 6.3 percent between 2014 and 2015, gaining P152.21 billion.

The region’s services sector, with a share of 41.9 percent to the GDP, posted a 6.8-percent growth, a significant rebound from the 4-percent decline the year before. This was due to the strong performance in the transport, storage and communication subsector.

“Other major contributors to the sector’s growth were financial intermediation and trade of vehicles and personal and household goods,” Perante said.

The National Economic and Development Authority (Neda) tagged the sector as the strongest driver of the regional economy. The sector has generated thousands of jobs, absorbing 45 percent of the region’s working population first semester of 2015.

“We also observed gradual growth in the value-added share of most components of the services sector, primarily accounted for by the resurgence of businesses. For instance, in Tacloban City, the region’s capital, we see newly established hotels and food establishments, which is evident of a vibrant service-oriented economy,” said Neda Regional Director Bonifacio Uy.

The industry sector, which accounts for 41.4 percent of the regional economy, recovered from the 3.3 percent decrease in 2014 to 4.4-percent growth last year.

Subsectors such as mining and quarrying, construction, electricity, gas and water supply showed double-digit growth last year.

“While the manufacturing subsector contributed the largest share to the region’s industry, it contracted by 3 percent, although better than the 16-percent slump in 2014,” Uy said.

The Neda regional chief reported that weak global demand for copper must have affected the supply of metallic inputs in the production of cathodes at the Philippine Associated Smelting and Refinery Corp., one of the heavy industries in Isabel, Leyte.

Agriculture, hunting, forestry and fishing (AHFF) continued to decline, but at a slower rate from 12.7 percent in 2014 to 3.5 percent in 2015. Farming and forestry recovered from a negative 3.6 percent. Fishing also managed to improve from a negative 18.2 percent to a negative 3.2 percent, according to the PSA.

Although most of the region’s families are dependent on AHFF, the sector’s share to the local economy plunged to 16.7 percent from 18 percent in 2014 and 20.1 percent in 2013.

“Broad-based growth was not realized, given the setback in the agriculture and fisheries sector – a challenge that consistently hounds the region. Natural threats such as the effects of El Niño and the impact of Typhoon Nona have aggravated the already fragile agricultural production of the region after Supertyphoon Yolanda,” Uy said.