Normin Economy Grows at a Faster Pace in 2016

Reference Number: 

PSAX-SR-2017-01

Release Date: 

Thursday, May 4, 2017

Normin Economy Grows at a Faster Pace in 2016

 

Northern Mindanao’s economy grew at a faster pace in 2016 by 7.6 percent, improving its rate of expansion by 1.9 percentage points from its recorded growth of 5.7 percent in 2015. The acceleration was due to the improved performance in Industry and Services.

 

 

Industry posted the biggest acceleration by 5.5 percentage points from its recorded growth in 2015 at 10.3 percent. Services, likewise, accelerated by 0.8 percentage point from its recorded growth of 7.5 percent in the previous year. Meanwhile, AHFF grew at a slower rate, that is, from 3.9 percent in 2015 to 2.4 percent. (Table 1)

Services grew by 8.3 percent in 2016, higher than the 7.5 percent growth in the previous year. Trade, which accounted for the biggest share in the total output of Services, expanded at a faster rate of 10.0 percent compared with the growth of 6.6 percent in the previous year. Such faster expansion was due to boost in retail trade. Moreover, Financial Intermediation also accelerated by 10.7 percent and PAD by 4.8 percent. These growths are higher than the previous year’s growths of 6.9 percent and 2.7 percent, respectively. TSC grew at a slower pace at 6.8 percent compared with the 8.7 percent recorded growth in the previous year. Slowdown in the transportation services contributed to the slower growth in the TSC. RERBA also increased by 5.0 percent although lower than the 5.5 percent increase in the previous year. Other Services expanded by 8.9 percent, slower than the recorded growth of 11.7 percent in the previous year. This was attributed to the slower pace of growth in the health services. (Table 1)

 

Industry also expanded at a faster rate of 10.3 percent compared with the 4.8 percent growth in the previous year. All of its subsectors except EGWS contributed to the faster expansion in the Industry. Manufacturing, which accounted the biggest chunk of the total output in the Industry sector, grew faster by 5.8 percent compared with the 3.2 percent growth in the previous year. This improvement was attributed to the increase in food and beverage industries. Construction showed an upsurge of 29.6 percent compared with the recorded growth of 13.1 percent in the previous year. This was fueled by both the public and private construction. Likewise, Mining & Quarrying further expanded to 16.0 percent, higher than the 15.2 percent growth in the previous year. EGWS, on the other hand, contracted by 0.5 percent due to the decline in electricity generation.

 

Meanwhile, AHFF increased at a slower rate of 2.4 percent compared with the 3.9 percent growth in the previous year. Agriculture and forestry slowed down recording a growth of 2.2 percent compared with the 2.8 percent growth in the previous year. Fishing also decelerated to 3.6 percent compared with the recorded growth of 11.7 percent in the previous year. This was driven by the lower increase in tiger prawn production in 2016.

 

Structure of the Regional Economy

 

The economy of Region 10 is predominantly services-based. Services accounted for 43.1 percent of the region’s total output, followed by Industry at 35.1 percent and AHFF at 21.9 percent. The percent shares of Services and Industry to the total economy of the region increased while AHFF decreased. (Table 2)

 

Among the sub-industries, the three biggest sub-industries in 2016 were the following: Manufacturing which accounted for 20.2 percent, followed by Agriculture and Forestry accounting 19.0 percent and Trade which accounted for 15.7 percent.

 

Contribution to GRDP Growth

Services was the largest contributor to the economic growth of Northern Mindanao in 2016 contributing 3.55 percentage points to the total 7.6 percent economic growth. Industry and AHFF contributed 3.54 and 0.55 percentage points, respectively.

Among the sub-industries, the top three contributors to the region’s economic growth were: Construction with 2.30 percentage points; Manufacturing with 1.19 percentage points and Trade with 1.54 percentage points. (Table 3)

 

 

Region 10 vis-à-vis Other Regions

Region 10 was the sixth fastest growing regional economy in the Philippines in 2016. It improved its ranking in terms of fast growing regional economy from rank 7 in 2015 to rank 6 in 2016. It was one of the ten regional economies which posted faster growth rates in 2016. It was also one of the six regions which posted a growth rate higher than the national growth rate at 6.9 percent. (Table 4)

 

 

In terms of percentage share in the Philippine economy, Northern Mindanao had the seventh biggest share of 3.8 percent. In other words, Region 10 was the seventh biggest regional economy in 2016. (Figure 2)

 

 

Northern Mindanao was in the seventh spot among all regions and second among the Mindanao regions in terms of highest per capita Gross Regional Domestic Product (GRDP) in 2016. Northern Mindanao’s per capita GRDP recorded an accelerated growth of 5.9 percent in 2016 from 4.9 percent in 2015. Region 10’s per capita index with reference to the national average was registered at 81.1 percent indicating that the region’s per capita GRDP is 19.9% lower than the PhP 78,712 national per capita GDP. (Table 5)

 

Northern Mindanao as part of the Mindanao Island Group

 

The economic growth of Mindanao accelerated from 5.8 percent to 6.4 percent in 2016. Four regions in Mindanao, including Region 10, posted accelerated economic growths in 2016. (Table 6)

Among the six regions comprising the Mindanao Island group, Northern Mindanao contributed 1.98 percentage points to Mindanao’s economic growth, making it the 2nd biggest contributor to the island’s economic growth following Davao Region with a contribution of 2.61 percentage points. (Table 6)

Northern Mindanao was the second largest economy in Mindanao in 2016 having a share of 26.2 percent, following Davao Region with share of 28.5 percent. (Table 7)

Looking at the major industries of the Mindanao economy, Region X remained to have the biggest chunk of the total AHFF of Mindanao in 2016 with an increased share of 28.9 percent of the total AHFF of Mindanao. In Mindanao’s Industry sector, Region X shared 26.1 percent in 2016 in total output of Mindanao’s Industry sector. Its share decreased in 2016 from the 26.3 percent share in 2015. For the Services, Northern Mindanao increased its share from 24.8 percent in 2015 to 25.0 percent in 2016. It has the second biggest share to the total services of Mindanao. It was second to Davao Region whose share in the total Services of Mindanao was 32.4 percent. (Figure 3)

 

For more inquiries, you may contact:

 

Statistical Operations & Coordination Division
Philippine Statistics Authority
Regional Statistical Service Office 10
2nd Floor, Bldg 4, Pride Rock Business Park,
Gusa Highway, Cagayan de Oro City
E-mail: psaregion10@gmail.com
Telefax: (088) 856-4778

 

 

 

 

 

 

 

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