SERVICES SECTOR CONTINUES TO BOOST CAR’S ECONOMY

April 26, 2025 Provincial

BAGUIO CITY

The Cordillera Region economy is mainly driven by services. In 2024, services sector logged a 6.8 percent growth valued at P262.49 billion, but slower compared to 8.8 percent growth in 2023. The (services sector ) contributed two-thirds of the P 378.26 billion of the region Gross Domestic Product (GRDP) followed by Industry with 23.5 percent share ( P87.68- B) , and Agriculture, Forestry, and Fishing with 7.4 percent share (P28.09 billion). The economy of the Cordillera Administrative Region (CAR) further expanded by 4.8 percent from the 360.90- billion-peso economic output in 2023 to 378.26 billion pesos in 2024, according to Philippine Statistics Authority-Cordillera
on its report on the 2024 Economic Performance of the region.

The Gross Value Added on Services showed that Wholesale and retail trade, including the repair of motor vehicles and motorcycles, held
the largest share at 26.0 percent, amounting to 262.48 billion pesos. Followed by Financial and insurance activities with a 17.7 percent, Real estate and ownership of dwellings with a 9.7 percent share, Accommodation and food service activities with a 9.1 percent share, and Professional and business services with an 8.9 percent share. Additionally, education represented 7.9 percent, followed by information and communication at 5.9 percent, while public administration and government services, including required social support, made up 4.9 percent.

Transportation and storage contributed 4.0 percent. Human health and social work activities accounted for 3.5 percent, and other services
comprised 2.3 percent. “Financial and insurance activities led growth in the Services sector, contributing 1.1 percentage points to the region’s economic expansion,” stated Dennis D. Gundran, Senior Research Specialist of Bangko Sentral ng Pilipinas (BSP) North Luzon Regional Office. The Wholesale and Retail Trade sector, which constitutes 26 percent of Services, helped drive growth with a significant
0.9 percentage point contribution, closely followed by Accommodation and Food Service Activities.

Professional and Business Services emerged as the fastest-growing industry in 2024, expanding by 12.1 percent. This contributed 0.7
percentage points to the region’s economic performance. Other Services, fueled by Arts, Entertainment, and Recreation, saw a notable 10.0 percent growth, making it the second fastest-growing industry. This was trailed by Human Health and Social Work Activities at 9.9 percent. The economic contributions of sectors within Services remain diverse, led by Wholesale and Retail Trade; repair of motor vehicles and motorcycles with an 18 percent share, followed by Manufacturing with 12.27 percent share and Financial and Insurance Activities at 12.26 percent. The Services sector has been CAR’s economic backbone since 2008, consistently driving growth amid challenges.

Christopher G. Monzon/UB-Intern