Metro Manila economic growth quickens to 7.5% in 2016

By Czeriza Valencia (The Philippine Star), May 5, 2017

MANILA, Philippines – Metro Manila’s economic growth quickened to 7.5 percent in 2016 from 6.7 percent the previous year, powered by the strong performance of the services sector, the Philippine Statistics Authority (PSA) reported yesterday.

In a briefing, PSA National Capital Region director Rosalinda Bautista said even if the capital is no longer the fastest-growing region in the country, it still accounted for the largest contribution – 36.6 percent – to the country’s gross domestic product (GDP) in 2016.

Metro Manila contributed 2.7 percentage points to the 6.9 percent GDP growth in 2016.

The services sector in the metro comprised 81.4 percent of the region’s economy, growing eight percent faster in 2016 from 6.6 percent in the previous year. Output was driven by gains in real estate renting and business activities, trade and repair of motor vehicles, as well as trade of personal and household goods, and financial intermediation.

The industry sector, which accounted for 18.5 percent of the region’s output, also sustained growth but at a slower 5.5 percent pace compared to 6.5 percent in 2015. The slowdown in growth was attributed to slower construction and manufacturing activities in the region.

Bautista noted more manufacturers in Metro Manila have been relocating outside the capital, some to special economic zones.

“But some manufacturers such as those making chemicals for industrial use are still in NCR,” she said. “Most of those that relocated were pharmaceutical companies.”

Meanwhile, agriculture, hunting, forestry and fishing, a minor economic activity in the metro, suffered a negative 1.4 percent growth in 2016, a reversal of the 4.1 percent growth registered in 2015. Bautista attributed this to the decline in fishing activities, specifically pertaining to catch brought to various fish landings in NCR.

Breaking down each sector’s contribution to the economic growth in Metro Manila in 2016, the services sector contributed 6.4 percentage points, industry contributed one percentage point while agriculture and fisheries contributed 0.05 percentage point.

Metro Manila continues to enjoy a per capita gross regional domestic product (GRDP)—the total regional economic output divided by its population—that is significantly higher than the national average. In 2016, NCR saw its per capita GRDP rise to P232, 837 from P219, 114 in 2015 and P203, 231 in 2014. This is way above the national average of P78, 712 in 2016, P74, 770 in 2015 and P71, 790 in 2014.

“If every region is growing as much as Metro Manila. We will be well-off,” said Bautista.

Aside from NCR, only CALABARZON posted per capita GRDP higher than the national average at P94,826 in 2016.

Increased activities in services and construction raised the employment rate in Metro Manila to 92.7 percent in 2016, up two percent from the previous year. This translates to 5.2 million persons employed.

The services sector employed 80 percent of the workers in Metro Manila while the industry sector employed 19.5 percent. The remainder were employed by the agriculture and fisheries sector.

NCR also registered an underemployment rate way below the national average in 2016. Only 8.7 percent of workers in the metro were looking for additional work hours to supplement their income compared to the national average of 18.3 percent.

PSA data showed NCR’s economy having a consistent but fluctuating growth in the past five years. From a growth rate of seven percent in 2012, it quickened to 9.2 percent in 2013 and slowed down to 5.9 percent in 2014 before rising again to 6.7 in 2015 and last year.

In 2016, Metro Manila is the eight fastest growing region in the country next to 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) and Davao Region (9.4 percent). NCR is followed by MIMAROPA which grew 2.7 percent and ARMM which registered growth of 0.3 percent.

All 17 regions posted positive economic growth last year, PSA said.