In 2018, Davao Region’s economy posted an 8.6 percent growth — the second fastest growth among all 17 regions, along with MIMAROPA, in the country.
Davao City remains as the fifth biggest economy in the country despite a slower growth rate in 2018.
The ranking was based on the Percent Share of Regions to Total GDP 2018. Davao City recorded a 10.7 percent growth in 2017 which catapulted it to the no. 5 ranking.
“Best part of this economy growth, as record in the Davao region, is that it is broad based and inclusive”, Maria Lourdes D. Lim, Regional Director of the National Economic Development Authority (NEDA) XI said during the 2018 Economic Performance of Davao Region press conference on Wednesday, April 24, at the Pinnacle Hotel, Davao City.
According to the Growth Rates by Major Industry /Sub-Industry (Davao Region), in percent (2016-2017 and 2017-2018) data, as released by the Philippine Statistics Authority (PSA) XI, the region’s top industry contributors grew immensely as compared to the previous year.
Services grew by 8.1 percent in 2018, faster than the 6.9 percent growth in 2017, is considered the top economy contributor. Top contributors include Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods (recoded 7.4 percent increase). Also included are Public Administration and Defense, Compulsory Social Security, Financial Intermediation, Other Sentices, Real Estate, Renting and Business Activities and Transport, Storage and Communication.
On the other hand, Agriculture Hunting Forestry and Fishing (AHFF) recorded a 2.9 percent growth, faster than the 1.7 percent growth in 2017.
And while Industry posted a 10.9 percent growth, it is a decrease from 19.0 percent growth in 2017. Top contributors included Mining and Quarrying, Manufacturing, Construction and Electricity, Gas and Water Supply.
“Government will need to shift to a catch up mode, fast track implementation as well as the completion of projects in the Davao region to keep up with the growth”, Lim added.
In terms of economic contribution, PSA’s Gross Regional Domestic Product (GRDP) by Industrial origin data showed that Services continued to be the biggest contributor at 49.3 percent followed by Industry with a 40.1 percent share and Agriculture, Hunting, Forestry and Fishing with 10.6 percent share.
Accordingly, there is an immense expectation of growth in 2019. As such, an expected increase in consumption is also deemed inevitable.
Of the 86 percent economic growth posted by Davao region, Industry contributed the most with 4.3 percentage followed by Services with 4.0 percentage. On the other hand, AHFF contributed the least with 0.3 percentage point.
Gross Regional Domestic Product (GRDP) measures the goods and services produced in each of the geo-political regions of the country. It provides for an analysis of the regional distribution of the country’s GDP, the industries and factors that contribute to the regional economies, and the pace at which these economies are moving on an annual basis. The GRDP is compiled on an annual basis by the Philippine Statistics Authority (PSA).