Issue No. 10, Series of 2017
Thursday, June 1, 2017
The economy of Region 1 grew by 8.4 percent in 2016 based on the Gross Regional Domestic Product (GRDP) estimates released by the Philippine Statistics Authority. The accelerated growth in the region’s economy was brought about by the faster growth in the Industry and Services.
In 2016, the GRDP of Region 1 reached 257.2 billion pesos which was 20.0 billion pesos higher than the recorded GRDP in 2015.
The next figure shows the economic performance of the region from 2012 to 2016. From a 7.0 percent growth rate in 2013, the economy of the region grew slower from 2014 to 2015. However, in 2016, the economic performance of the region accelerated to 8.4 percent, higher than the recorded country’s Gross Domestic Product (GDP) growth rate of 6.9 percent during the same year.
Growth Rates by Industry
The Agriculture, Hunting, Forestry and Fishing (AHFF) further declined from negative 1.3 percent in 2015 to negative 1.8 percent in 2016. The decline in AHFF was attributed to the decline of its sub-industries. Agriculture and Forestry suffered reversal from a growth of 0.4 percent in 2015 to negative 1.6 percent in 2016. Meanwhile, Fishing improved, but still negative, from 7.6 percent in 2015 to 2.6 percent in 2016.
Meanwhile, Industry grew faster from 8.3 percent in 2015 to 17.9 percent in 2016. The acceleration was due to the faster growth in Construction by 43.4 percent. In 2016, Mining and Quarrying and Electricity, Gas and Water Supply also grew at a faster rate compared to previous year by 12.0 and 5.5 percent, respectively. Manufacturing on the other hand grew by 2.6 percent, slower than the 3.2 percent increase in 2015.
Services accelerated from 7.1 percent in 2015 to 8.0 percent in 2016 with the faster growths of all its sub-industries except Transportation, Storage and Communication. The biggest acceleration was recorded by Publication Administration and Compulsory Defense with a growth from 1.3 percent in 2015 to 6.3 percent in 2016. Financial Intermediation also grew at a faster rate from 5.8 percent in the previous year to 8.0 percent this year. Likewise, Other Services, Trade and Real Estate, Renting, and Business Activities posted higher growths at 11.2, 8.0, and 7.3 percent, respectively. Other services includes: Education, Health and Social Welfare, Hotel and Restaurants and Recreation Activities. On the other hand, Transportation, Storage and Communication grew on a slower rate from 6.9 percent in 2015 to 5.3 percent in 2016.
Percent Distribution by Industry
Services contributed the largest share in the region’s output in 2016 at 51.2 percent. The Industry, on the other hand contributed 28.8 percent. Meanwhile Agriculture, Hunting, Forestry and Fishing (AHFF) accounted 20.1 percent in the region’s economic performance in 2016.
Contribution to Growth
Of the 8.4 percent growth in the region’s economy in 2016, Industry contributed the largest with 4.7 percentage points, while Services contributed 4.1 percentage points. On the other hand, AHFF pulled down the region’s economy by 0.4 percentage point.
Per Capita GRDP
In terms of per capita GRDP, the share of each population to the GRDP of Ilocos Region was 49,461 pesos which was 7.1 percent higher than in 2015. Meanwhile, the per capita GDP in 2016 at the national level was 78,712 pesos. This was 5.2 percent higher than in 2015.
GRDP of Region 1 vis a vis other Regions
In 2016, Region1 ranked fifth among the 17 regions in the country in terms of growth rate. The 8.4 GRDP growth rate of Ilocos Region in 2016 was above the national GDP growth rate of 6.9 percent.
In terms of the regional share to total GDP, Ilocos Region ranked 8th with 3.2 percent share in 2016. Meanwhile, NCR still contributed the largest with 36.6 percent followed by regions IVA, III and VII.
Gross Domestic Product – the value of all goods and services produced domestically; the sum of gross value added of all resident institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the values of their outputs).
Gross Regional Domestic Product - aggregate of the gross value added or income from each industry or economic activity of the regional economy.
Gross Value Added – the difference between gross output and intermediate inputs. Gross outputs of a production unit during a given period is equal to the gross value of the goods and services produced during the period and recorded at the moment they are produced, regardless of whether or not there is a change of ownership. Intermediate inputs refer to the value of goods and services used in the production process during the accounting period.
Constant Prices (at constant prices) – valuation of transactions, wherein the influence of price changes from the base year to the current year has been removed.