NCR’s economy slows down in 2017
The economy of the National Capital Region (NCR) slowed down from 7.4 percent in 2016 to 6.1 percent in 2017. The main drivers for growth in 2017 were Trade, Real Estate, Renting and Business Activities, Financial Intermediation and Manufacturing.
Services account the largest share of the region’s economy
The Services continued to account for the largest share of the region’s economy, with a share of 82.1 percent of the total domestic production. Industry and AHFF accounted for 17.7 percent and 0.2 percent of the region’s total output, respectively.
Services decelerate to 7.0 percent in 2017
Services decelerated from 8.0 percent in 2016 to 7.0 percent in 2017. Public Administration and Defense (PAD) grew faster from 7.9 percent in 2016 to 8.6 percent in 2017. Trade grew at 8.2 percent in both 2016 and 2017. On the other hand, Real Estate, Renting and Business Activities (RERBA), Financial Intermediation, Other Services and Transportation, Storage & Communication slowed down from 11.3 percent, 8.1 percent, 5.3 percent and 3.3 percent in 2016 to 8.0 percent, 7.4 percent, 4.4 percent and 2.2 percent in 2017, respectively.
Industry decelerates to 2.0 percent in 2017
Industry decelerated from 5.1 percent in 2016 to 2.0 percent in 2017. This was attributed to the decline in Construction, Manufacturing and Electricity, Gas and Water Supply (EGWS). Construction further declined from negative 3.5 percent in 2016 to negative 16.1 percent in 2017. Manufacturing slowed down from 6.6 percent to 6.3 percent while EGWS decelerated from 8.7 percent in 2016 to 2.3 percent in 2017.
Agriculture registers at 0.7 percent growth in 2017
AHFF also slowed down from 2.5 percent growth in 2016 to 0.7 percent growth in 2017. Agriculture and Forestry grew at slower pace from 2.6 percent in 2016 to 0.7 percent in 2017. Fishing continued to decline posting negative 3.2 percent in 2016 and negative 0.3 percent in 2017.
Real per capita Gross Regional Domestic Product (GRDP) of NCR grows in 2017
With the region’s projected population of 12.9 million in 2017, real per capita gross regional domestic product grew by 5.2 percent.
Gross Regional Domestic Product (GRDP) is the aggregate of gross value added (GVA) of all resident producer units in the region.
The GRDP includes regional estimates on the three major sectors including their sub-sectors namely:
Agriculture, Hunting, Forestry and Fishing (AHFF)
Mining and Quarrying
Electricity, Gas and Water Supply (EGWS)
Transport, Storage and Communication (TSC)
Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods
Financial Intermediation (FI)
Real Estate, Renting and Business Activity (RERBA)
Public Administration and Defense; Compulsory Social Security (PAD)
Other Services (OS)
In using the GRDP, the following points should be considered:
The following sectors (Manufacturing, TSC, RERBA, Trade and OS) are based on the Census of Philippine Business and Industry (CPBI) and Annual Survey of Philippine Business and Industry (ASPBI) results from PSA, which becomes available every two (2) years after the reference year. During the years when the CPBI or ASPBI results are not yet available, other indicators and the Quarterly Survey of Philippine Business and Industry (QSPBI) trend are used to produce regional GVA estimates. In the case of the TSC, subsequent adjustments are made based on the additional indicators from administrative data of LTO, PPA, PAL, ATO, and PPC.
The regional GVAs for each of the sub-sectors of agriculture, fishery and forestry are estimated indirectly using the gross value added ratio (GVAR) approach.
For private construction, regional distribution is based on the structure of the Building Permits data. For public construction disaggregation by region is based on the regional breakdown of the infrastructure program of NEDA and validated by the individual agencies' infrastructure programs.
For the sub-sector of electricity and water where available financial statements from NPC, MERALCO, REG, MWSS and LWUA can provide the required data inputs, the production approach is employed to estimate the regional GVAs.
The regional distribution of resources from the BSP factbook and Insurance Commission are used to estimate the regional GVAs of the Financial Intermediation sub-sectors.
For RERBA, regional benchmark estimates are obtained using the results of the latest Census of Population and Housing (CPH) and Family Income and Expenditure Survey (FIES). Regional data on the total floor area of residential construction available from Building Permits data of PSA serve as indicator for estimating the regional distribution of the number of occupied dwelling units.
The regional GVAs for the PAD are estimated based on the data from the Commission on Audit (COA).
Source: Philippine Statistics Authority