PSA: CAR ECONOMY IN 2023 GREW BY 6.9 %, 4TH FASTEST AMONG REGIONS

April 26, 2024 Headlines

Cordillera’s economy remains service-based

BAGUIO CITY

The Cordillera’s economy grew by 6.9 percent in 2022- 2023, the fourth highest in growth among the 17 regions in the country – behind Central Visayas (7.3 percent) which ranked first, Western Visayas second at 7.2 percent while
Ilocos third with 7.1 percent. The region’s economy last year, expanded from P337.8- billion economic output in 2022 to P361.1-billion in 2023, and surpassed the pre-pandemic level at P321.7B in 2019.

However, Cordillera remains one of the region that has the least share to national gross domestic expenditure at 1.7 percent. Phillippine Statistics Authority-Cordillera Director Villafe Alibuyog said the region’s Per Capita Gross
Regional Domestic Product (GRDP) at P195,162 posting a 6.1 percent points , the second highest nationwide behind
National Capital Region P460,969.

Cordillera surpassed the national per capita GDP average of P186,476. In the three major industries of economy, Services accounted to be the main driver of CAR’s economy with 68.1 percentage points followed by Industry with 24.2 percentage points. Agriculture, Forestry, and Fishing (AFF) records the lowest contribution with 7.7 percentage
points. “However, agriculture, forestry and fishing (AFF) experienced continuous contraction from 28.7B in 2021
to 23.1B in 2022 and 27.8B in 2023.

The AFF has not surpassed the pre-pandemic level yet and continued to contract since then”, RD Alibuyog emphasized in her report. The region’s Per Capita Household Final Consumption Expenditure (HFCE) at P139,681, the 4th highest nationwide, surpassed the national average of P136,247. Alibuyog pointed that tourism related activities posted the fastest growth with 31 percent marked by accommodation and food service activities followed by Other services at 30.6 percent to include but not limited to -live performances, sports, recreation, museum activities, and gambling, among others.

The other faster growths recorded in –transportation and storage at 27.7 percent; electricity, steam ,water and waste
management (8.1 percent) ; and wholesale and retail trade (8 percent). The main drivers of the region’s economy in terms of Gross Regional Domestic Product (GRDP) include accommodation and food service activities with 1.5 percentage points; wholesale and retail trade 1.4 percentage points.

The Gross Regional Domestic Product (GRDP) is the aggregate of Gross Value Added (GVA) of all resident producer units in the region Sectors that declined and hampered the region’s economic growth are – public administration/defense (-0.8 percent); mining and quarrying (-1.7 percent) ; and agriculture/ forestry/fishing ( -1.3 percent). Top contributors to the region’s growth by expenditure in percentage points are – household final consumption expenditure at 3.7; net exports to the rest of the world 1.9; and net exports to the rest of the country 1.6.

On the share by industry, wholesale and retail trade, repair of motor vehicles/motorcycles had the highest percentage at 18 percent; Manufacturing 12 percent;Financial ; and insurance 11.7 percent.

Shine Grace Estigoy /UB-Intern/ ABN