4 regions contract in 2009 despite RP’s crisis-proof record

WHILE it is true that the Philippine economy did not contract amid the global economic crisis and the onslaught of Tyhoon Ondoy and Pepeng in 2009, four regions, including the National Capital Region (NCR), experienced a contraction in gross regional domestic product (GRDP) due to the crisis and the typhoons.

The National Statistical Coordination Board (NSCB) data showed that while the Philippines’ gross domestic product (GDP) grew by 1.1 percent in 2009, a positive growth rate was not true for all regions, including the NCR, which is the largest contributor to GDP.

“In 2009 out of the 17 regions in the country, 13 regions posted positive growths, while four regions recorded reversals,” the NSCB said.

“In terms of contribution to the national gross-domestic product growth rate in 2009, six regions posted positive contributions, eight regions had zero contributions, while three regions pulled down the GDP growth,” it added.

Data showed that the GRDP of the NCR posted a contraction of 0.4 percent in 2009 from a positive growth of 4.7 percent in 2008; while Region 1, or the Ilocos region, contracted by 1 percent in 2009 from a growth of 2 percent in 2008.

The NSCB also said Region 3, or Central Luzon, and Region 4-A ,or Calabarzon, posted contractions in GRDP of 1.4 percent and 1.6 percent in 2009, respectively. In 2008 Region 3 posted a GRDP growth of 3.7 percent and Region 4-A, 1.9 percent.

Data showed that contraction in Metro Manila’s GRDP was due to the slump in the industry sector and the deceleration of the services sector. The service sector accounted for the largest share (67.6 percent) of the NCR’s economy in 2009, higher than its share of 65.4 percent a year ago.

Industry, on the other hand, posted a lower percentage share of 32.4 percent from 34.6 percent, while the share of Agriculture, Fishery and Forestry (AFF) remained insignificant in 2009.

In the Ilocos region, the main reason for the reversal in growth was the contraction of AFF. Due to this, AFF recorded a share of 37.3 percent, which was lower than its previous year’s share of 41.6 percent.

The service sector posted the highest share of the region’s total domestic output, rising to 45.7 percent in 2009 from 43.6 percent in 2008. The industry sector, meanwhile, accounted for 17 percent, an increase from its share of 14.8 percent the previous year.

The NSCB said the contraction in the GRDP of Central Luzon’s economy was largely due to the slump in the industry sector. With this, industry’s share of 34.7 percent in 2009 was lower than its share of 35.6 percent the previous year.

Services, on the other hand, accounted for the bulk of the region’s economy as it increased its share to 40.9 percent in 2009 from 39.9 percent in 2008. Meanwhile, AFF accounted for 24.3 percent, also lower than its previous share of 24.5 percent.

NSCB data also showed that Calabarzon’s economy in 2009 contracted because the Industry and AFF sectors posted negative growth rates, while services decelerated.

In Calabarzon the largest share of the economy in 2009 was accounted for by the Service sector with 42.9 percent, higher than its share of 41.5 percent the previous year.

The share of the Industry sector, meanwhile, was 38.3 percent, lower than its previous share of 39.7 percent. AFF’s share of 18.8 percent, on the other hand, represented a slight increase from its 18.7-percentage share the previous year.

Meanwhile, the NSCB said the economy of Region 5, or the Bicol region, posted the highest growth rate at 8.2 percent, while Western Visayas was the biggest contributor to GDP with a 0.4-percentage-point share.

Calabarzon recorded the lowest growth among all 17 regions and was the biggest drag in economic growth in 2009 with a negative contribution of 0.2 percentage point to GDP.

Further, the NCR continued to account for the largest share of the country’s GDP with a 32.5-percent share in 2009, lower than its 33-percent share in 2008. The Autonomous Region in Muslim Mindanao (ARMM) continued to have the lowest percentage share of 0.9 percent.

The country’s real per capita GDP decreased by 0.9 percent to P15,528 in 2009 from P15,666 in 2008. The NCR continued to register the highest real per capita GRDP at P40,838. Its per capita GRDP is almost three times the national per capita GDP in 2009.

The NSCB said the Cordillera Autonomous Region, Northern Mindanao and Davao region also registered real per capita GRDP higher than the national average at P19,007, P17,183 and P15,696, respectively. On the other hand, ARMM posted the lowest real per capita GRDP at P3,573.

The national inflation rate, based on the GDP implicit price index, was recorded at 2.6 percent in 2009, a significant drop from 7.5 percent in 2008. Ilocos region recorded the highest increase in the average prices of goods and services at 4.8 percent.

This was followed by Northern Mindanao and Bicol, with inflation posting 4.6-percent and 4.1-percent growth, repectively. On the other hand, Region 4-B, or Mimaropa, recorded a negative 1-percent growth in inflation.

GRDP measures the goods and services produced in each geopolitical region. It provides an analysis of the regional distribution of the GDP and the industries and factors that contribute to regional economies.

The NSCB said the GRDP also measures the pace at which regional economies are moving. The NSCB compiles the GRDP annually. –Cai U. Ordinario / Reporter, Businessmirror