The economy of Davao Region as measured by the Gross Regional Domestic Product (GRDP), posted an accelerated growth of 9.4 percent in 2016 due to the faster growth of industry sector.
The Service sector continued to account for the biggest share to the region’s economic output at 51.1 percent. The Industry sector followed with a 36.7 percent share, and Agriculture, Hunting, Forestry and Fishing (AHFF) with 12.2 percent share. The percentage share of the Industry to the total output of the region increased, while Services and AHFF shares declined.
The Service sector managed to sustain its 7.5 percent growth, with three of its six subsectors posted accelerated growths. The biggest acceleration was observed in Financial Intermediation which grew by 10.2 percent, from 5.5 percent in 2015. Trade accelerated to 7.5 percent from 7.4 percent, while Public Administration & Defense (PAD) grew by 5.1 percent from 2.6 percent. Meanwhile, Transportation, Storage and Communication (TSC) decelerated to 6.4 percent from 9.4 percent growth in the previous year. Real Estate, Renting and Business Activities (RERBA) recorded deceleration with 6.9 percent growth from 8.2 percent in 2015, and Other Services decelerated to 7.9 percent from 8.2 percent.
The Industry sector posted the highest growth of 16.5 percent among the major industries in Davao region due to the improved performance of Electricity, Gas and Water Supply (EGWS) and as well as Construction. In the previous year, Industry grew by 12.2 percent. EGWS accelerated by 44.5 percent from 16.1 percent while Construction recorded higher growth rates at 25.8 percent from 10.2 percent. On the other hand, Mining and Quarrying decelerated to 15.7 percent from 25.6 percent while Manufacturing also recorded decelerated growth at 11.2 percent from 12.4 percent in the previous year.
AHFF contracted by 1.3 percent in 2016 from the 1.4 percent growth in 2015. The sector’s contraction was observed in its 2 subsectors. The Agriculture and Forestry declined by 1.3 percent, and Fishing contracted by 0.9 percent. The Industry sector contributed the biggest share to the region’s economic growth in 2016 at 5.7 percentage points. The Service sector shared 3.9 percentage points, while AHFF pulled out the total output by 0.2 percentage points. The GRDP measures the goods and services produced in each of the geo-political regions of the country. It provides for an analysis of the regional distribution of the country’s GDP, the industries and factors that contribute to the regional economies, and the pace at which these economies are moving on an annual basis. The GRDP is compiled on an annual basis by the Philippine Statistics Authority (PSA).