Gross Regional Domestic Expenditure, 2014 to 2016

Regional Accounts ID: 

GRDE

Release Date: 

Thursday, July 27, 2017

Edition: 

2017

The Gross Regional Domestic Expenditure (GRDE) accelerated by 6.9 percent in 2016. This was higher than its 2015 growth of 6.1 percent. GRDE is the sum of all final uses of goods and services in the regional economies during the year.

Visayas posted the highest growth with 8.5 percent compared with the previous year’s 6.1 percent. Luzon and Mindanao posted growths of 6.8 percent and 6.4 percent, respectively, in the same period (Figure 1).

 

 

Luzon continued to get the highest share of the country’s expenditures, accounting for 73.1 percent of the total expenditures. On the other hand, Mindanao and Visayas contributed 14.4 percent and 12.6 percent to the total GRDE, respectively.

The biggest contributor to the 2016 GRDE growth was the Luzon group, with NCR and Other Luzon contributing 2.7 and 2.2 percentage points, respectively to the national growth of 6.9 percent during the year. Meanwhile Visayas and Mindanao island groups contributed 1.0 and 0.9 percentage points, respectively, to the total domestic expenditures.

All seventeen regions posted positive economic growth from 2015 to 2016 with Eastern Visayas’ economy growing the fastest. Ten regions recorded accelerated economies during the year: Eastern Visayas (12.4 percent); Central Luzon (9.5 percent); Central Visayas (8.8 percent); Ilocos Region (8.4 percent); Northern Mindanao (7.6 percent); SOCCSKSARGEN (5.0 percent); Davao Region (9.4 percent); National Capital Region (NCR) (7.5 percent); MIMAROPA (2.7 percent); and ARMM (0.3 percent).  

The following regions’ economies also grew, but at a slower pace: Bicol Region (5.7 percent); Zamboanga Peninsula (4.7 percent); Western Visayas (6.1 percent); Caraga (2.5 percent); Cordillera Administrative Region (CAR) (2.1 percent); CALABARZON (4.8 percent); and Cagayan Valley (3.3 percent) (Figure 2).

 

 

NCR remained to have the largest domestic spending with 36.6 percent of the total GRDE. This was followed by CALABARZON with 16.8 and Central Luzon with 9.5 percent share.

On the other hand, ARMM and Caraga had the least share of total expenditures with 0.6 percent and 1.2 percent, respectively.

 

Sectoral highlights

1. Household Final Consumption Expenditures (HFCE)

     1.1       Total HFCE

The country’s household final consumption expenditures (HFCE), which comprised   69.3 percent of total expenditures, grew by 7.0 percent in 2016.

In terms of the country’s island groupings, Visayas recorded the highest HFCE growth at 7.6 percent with Luzon and Mindanao groups closely following with 7.0 percent and 6.1 percent, respectively.

Eastern Visayas Region posted the highest growth of 10.1 percent, an acceleration from its 2015 growth of 7.0 percent. Davao Region and Central Luzon both posted 9.0 percent growth.  On the other hand, the region with the least HFCE growth was ARMM with 1.1 percent (Figure 3).

 

 

NCR remained the highest spending region on consumer goods and services at 23.3 percent of the national HFCE. Trailing behind were CALABARZON and Central Luzon at 16.2 percent and 12.5 percent, respectively, of the total HFCE.

ARMM and Caraga likewise continued to be the low spending regions contributing 1.4 percent and 1.6 percent, respectively.

     1.2       Per Capita HFCE

Eastern Visayas per capita HFCE posted the highest expansion in real terms at 8.1 percent valued in 2016. Central Luzon followed at 7.4 percent. On the other hand, ARMM declined in per capita HFCE at 1.4 percent (Figure 4).

 

 

2. Government Final Consumption Expenditures (GFCE)

Government final consumption expenditures accelerated to 8.4 percent in 2016, higher than previous year’s 7.6 percent growth due to the increase in government’s maintenance and other operating expenses (MOOE). Likewise, the implementation of the first tranche of the salary adjustment of the government contributed to the increase of GFCE.

Among the three major island groups, for three consecutive years, the Visayas group posted the highest growth in 2016 at 9.7 percent. Meanwhile, the Mindanao and Luzon groups recorded 9.1 percent and 8.1 percent, respectively. 

All regions posted positive growths, with Ilocos Region having the highest growth in 2016 at 12.4 percent. This was followed by: Cagayan Valley, 10.7 percent; and Zamboanga Peninsula, 10.4 percent. Meanwhile, the three lowest regions were: MIMAROPA Region, 6.7 percent; NCR, 7.1 percent; and Caraga, 7.6 percent (Figure 5).

 

 

Among all regions, the share of NCR was the highest which accounted for 47.2 percent or almost half of the total government expenditures. The next top three regions were: Central Luzon, CALABARZON, and Western Visayas which accounted for 6.0 percent, 5.9 percent and 4.6 percent share, respectively of the total GFCE. On the other hand, CAR, Caraga and MIMAROPA Region were the regions with the lowest registered shares of 1.8 percent, 1.9 percent and 2.0 percent, respectively.

3. Gross Domestic Capital Formation (GDCF)

Total gross domestic capital formation in 2016 accelerated to 23.7 percent. This was higher than the 18.4 percent in 2015. Meanwhile, fixed capital formation grew faster by 25.2 percent in 2016 from 16.9 percent during the previous year.

     3.1       Construction

Investments in total construction in 2016, went up by 15.1 percent compared with 11.0 percent in 2015. Among the major island groups, Luzon (excluding NCR) cornered most of the investments in construction with 36.9 percent share of the total investments in construction. Visayas, meanwhile received 24.3 percent of the total construction investments while Mindanao garnered 21.6 percent. Of the three island groups, Gross Value (GV) of construction grew the fastest in the Visayas, growing by 32.0 percent in 2016, compared with 6.8 percent in 2015. Likewise, Construction GV in Mindanao also grew faster, accelerating to 25.9 percent in 2016 from 15.8 percent in 2015. On the other hand, total Construction Investments in Luzon (excluding NCR) grew slower to 8.5 percent compared with 13.0 percent in the previous year.

Construction investments in Eastern Visayas grew the fastest in 2016 with a growth of 48.6 percent, compared with 13.0 percent growth in 2015. This was followed by Ilocos Region with 46.2 percent and Central Visayas with 43.0 percent (Figure 6).

 

 

NCR continued to lead total construction investments with 17.2 percent share, followed by CALABARZON with 12.8 percent and Central Visayas with 12.2 percent. On the other hand, ARMM had the least contribution to the total investment at 0.2 percent.

Growth in Public Construction rebounded to 28.0 percent in 2016, compared with 25.5 percent in 2015. Public Construction in Northern Mindanao posted the highest growth in 2016 with 59.4 percent, compared with 12.3 percent in the previous year. Zamboanga Peninsula registered the second highest growth in Public Construction at 47.0 percent, while at third was Eastern Visayas with 43.0 percent.

Private construction, which accounted for 76.0 percent of total investments in construction, grew by 11.5 percent, compared with 7.6 percent in the previous year. Eastern Visayas posted the highest growth with 51.3 percent, compared with 16.2 percent in the previous year. This was followed by Ilocos Region and Central Visayas with 51.1 percent and 47.0 percent, respectively.

     3.2      Durable Equipment (DE)

Real investments in durable equipment accelerated to 34.5 percent in 2016 from 23.0 percent as most regions exhibited growth in their investments.

The Visayas group posted the highest growth rate of 48.1 percent in 2016 while Luzon and Mindanao gained double digit growth of 35.1 percent and 20.2 percent respectively. Other Luzon group posted 22.5 percent, while NCR accelerated by 46.3 percent. Meanwhile, Investments in Mindanao slowed down to 20.2 percent in 2016. 

Regions with notable expansion in real investments in DE were: CALABARZON, posting 25.4 percent; Central Luzon, 13.6 percent; Central Visayas, accelerating by 63.9 percent; and, SOCCSKSARGEN, recording 20.8 percent (Figure 7).

 

 

     3.3       Breeding Stocks and Orchard Development

The combined investments in breeding stocks and orchard development accelerated to 3.6 percent, higher than the previous year’s 2.0 percent growth. 

Luzon continued to lead in investments share in breeding stocks and orchard development with 63.3 percent, followed by the Mindanao group with 20.9 percent share and the Visayas group with 15.8 percent share. Continuous growth in investments was posted in 2016 for Luzon at 3.8 percent, Visayas at 4.5 percent and Mindanao at 2.2 percent.

Among the regions, CALABARZON registered the highest growth at 11.4 percent. This was followed by Eastern Visayas and Central Visayas which increased by 8.0 percent and 7.2 percent, respectively. Meanwhile, Bicol, MIMAROPA and Central Luzon regions posted the biggest decline with 4.9 percent, 2.3 percent and 2.1 percent, respectively (Figure 8).

 

 

     3.4       Intellectual Property Products

Intellectual Property Products (IPP) includes expenditures on research and development, mineral exploration, computer software and databases, and entertainment, literary or artistic originals.

Expenditures on IPP accelerated to 34.2 percent in 2016, higher than 27.6 percent in 2015.  Both Luzon and Mindanao have accelerated growths of 34.6 percent and 33.7 percent, respectively. Meanwhile, Visayas slowed down with 25.8 percent. NCR accelerated to 33.2 percent in 2016.

Region-wise, Ilocos is the region with the highest recorded growth in 2016 at 71.4 percent. It was followed by Bicol and Eastern Visayas with accelerated growths of 63.1 percent and 59.8 percent, respectively (Figure 9).

 

 

Among the regions, NCR has the biggest share with 85.1 percent in 2016 while ARMM has the least contribution to the total IPP.

     3.5       Changes in Inventories (CIN)

Changes in Inventories posted additions in 2016 which amounted to Php 20.4 billion, lower than the Php 37.9 billion in 2015.  

By major island groups, Luzon recorded withdrawals of Php 2 billion in 2016, while Visayas and Mindanao registered additions of Php 7.2 billion and Php 15.2 billion, respectively.

Among the regions, 10 regions posted additions in their inventories in 2016. The top three among those were: Central Luzon, Php 15 billion; Northern Mindanao, Php 9 billion; and Bicol Region, Php 8.6 billion. The three regions that recorded the largest withdrawals were: CALABARZON with Php 21.9 billion; NCR with Php 2.6 billion; and CAR with Php 2.5 billion.   

 

4. Net Exports

The Philippines recorded deficit net exports in 2016 which amounted to Php 631.3 billion, a lower deficit of Php 288.8 billion in 2015. All regions posted deficits except for two regions: NCR, Php 462.2 billion; and CAR, Php 11.2 billion

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