The Davao Region remained one of the country’s strongest-performing regional economies in 2025, posting a 5.1-percent growth rate driven largely by the services sector, while maintaining its position as the fourth fastest-growing and fifth-largest regional economy in the Philippines, according to an official.
Art M. Milan, co-chair of the Regional Development Council 11 (RDC 11), said the region’s gross regional domestic product (GRDP) continued to outperform both the Mindanao and national averages despite slowing from the 6.3-percent growth recorded in 2024.
He said the services sector accounted for 62.1 percent of the region’s GRDP, followed by industry at 24.7 percent and agriculture at 13.2 percent.
“That’s why the promotion of coconut is very vital in trying to improve the performance of the agriculture sector. We need greater contributions from agriculture, forestry, and fisheries to create more balanced and equitable growth in the Davao Region,” Milan said.
He noted that while growth moderated compared to the previous year, the Davao Region still exceeded the overall performance of both Mindanao and the country.
“The 5.1-percent growth is lower than last year’s 6.3 percent. However, our 5.1 percent is higher than Mindanao’s average growth of 4.6 percent and the national average of 4.4 percent. The Davao Region is the fourth fastest-growing regional economy. It is also the fifth-largest regional economy, with an economy valued at P1.14 trillion. This is closely followed by Northern Mindanao (Region 10), with an economy worth P1.09 trillion. We are already a trillion-peso economy,” he said.
Milan identified wholesale and retail trade, together with the construction sector, as the biggest contributors to the region’s services-led expansion.
“What contributed to the services sector is really wholesale and retail trade, as well as construction. If you look around, construction remains robust in the Davao Region. It is also strong across Mindanao. Major cities experiencing robust construction activities include General Santos, Davao, Cagayan de Oro, and Zamboanga,” he said.
He added that manufacturing, particularly electricity, water and waste management, as well as logistics, has also become a major engine of economic growth.
“Another driver of growth is manufacturing, especially electricity, water and waste management, and logistics. Mindanao, particularly Davao, is emerging as the logistics hub of Mindanao,” Milan said.
Despite the strong economic performance, Milan stressed the need to strengthen agriculture to achieve more balanced and inclusive growth, emphasizing that increased investments in coconut production, agriculture, forestry, and fisheries will be essential to sustaining the region’s long-term development.
