The economy of the region declined by 5.2 percent in 2020 which translated to an economic loss of PhP 44.9 billion. The Gross Regional Domestic Product (GRDP) of the region was reduced to PhP 822.6 billion in 2020 from its recorded GRDP of PhP 867.4 billion in the previous year. The main drivers of the economic contraction were: Construction recording a decline of 21.7 percent; Wholesale and retail trade, repair of motor vehicles and motorcycles with 5.7 percent decline; and Transportation and storage which reduced by 39.5 percent. On the other hand, the top industries that posted expansion were Manufacturing, Financial and insurance activities, and Information and communication, at 11.0 percent, 8.0 percent and 4.7 percent, respectively (Table 1). Region X was third among the 17 regions in terms of the slowest contraction of the regional economy.
Services recorded the fastest decline of -9.0 percent among the major industries. Among the industries under Services, Accommodation and food service activities had the fastest decline of 49.6 percent, followed by Transportation and storage with a recorded decrease of 39.5 percent, and Real estate and ownership of dwelling by -14.4 percent (Table 1).
Industry also declined by 1.9 percent with Construction recording the fastest decline of 21.7 percent. On the other hand, Manufacturing and Electricity, steam, water and waste management expanded with growth rates of 11.0 percent and 4.4 percent, respectively. (Table 1)
Agriculture, forestry, and fishing is the only major industry which grew by 1.5 percent (Table 1).
Structure of the Regional Economy
The economy of the region is predominantly Services-based. Services accounted for 53.1 percent of the total regional economy, followed by Industry accounting for 25.2 percent, and Agriculture, forestry, and fishing (AFF) with 21.7 percent share (Table 2). AFF and Industry increased their shares to the regional economy in 2020 while Services had a decreased share.
Among the industries, the three biggest industries in 2020 were the following: Wholesale and retail trade; repair of motor vehicles and motorcycles with a decreased share of 26.8 percent, followed by Agriculture, forestry, and fishing accounting for an increased share of 21.7 percent, and Manufacturing also with an increased share of 13.0 percent. (Table 2)
Per Capita GRDP
The GRDP value accounted for each person in the region is described by per capita GRDP. Per capita GRDP in Region X decreased by 6.3 percent recording a value of PhP 163,952 in 2020.
Region 10 vis-à-vis Other Regions
Region X was third in terms of the slowest contraction in the regional economy, following SOCCKSKARGEN which contracted by 4.3 percent and BARMM by 1.9 percent. The region was also one of the ten regional economies which posted a decline slower than the national contraction rate of -9.6 percent (Figure 1).
By industry, the region recorded the slowest decrease in Education and Other Services. Moreover, the region registered the third fastest decrease in Transportation and storage and fifth fastest decrease in Wholesale and retail trade; repair of motor vehicles and motorcycles and Accommodation and food services. (Table 3)
On the other hand, the region registered the second fastest growth in Manufacturing among the 17 regions, third fastest growth in Electricity, steam, water and waste management among the 17 regions and fourth fastest growth in Financial and insurance activities.
In terms of the percentage share to the Philippine economy, Northern Mindanao had the seventh biggest share to the Philippine economy at 4.7 percent (Figure 2). Moreover, Region X contributed -0.2 percentage point to the Philippine economic decline of 9.6 percent in 2020, making it the ninth biggest contributor to the GDP decline.
Moreover, the region had the second highest real per capita GRDP among the 17 regions. (Table 4)
The Gross Regional Domestic Product (GRDP) is one of the measures being released by the Philippine Statistics Authority every year. The GRDP measures economic performance from the perspective of the producers of goods and services. It covers the value of goods and services produced in the region during the reference period.
JANITH C. AVES, CE, DM
(Chief Statistical Specialist)