Davao Region’s economy posts 5.9 percent growth in 2021

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Release Date: 

Friday, April 29, 2022
Davao Region’s economy posts 5.9 percent growth in 2021
The economy of Davao Region grew by 5.9 percent in 2021, as measured by the Gross Regional Domestic Product (GRDP) and Gross Regional Domestic Expenditure (GRDE).    It    was    valued    at    882.0    billion    pesos    in    2021    from    about 833.2 billion pesos in 2020, an estimated increase of 48.8 billion pesos comparing the two periods. However, the level is still short of 18.5 billion pesos compared level recorded in 2019.
Performance of sub-industries
All the 16 major sub-industries of GRDP posted positive growths in 2021.
Agriculture, forestry, and fishing grew by 0.8 percent.
Industry recorded 9.9 percent growth in 2021. Among the subsectors under Industry, Mining and quarrying posted the fastest with 21.9 percent. It was followed by Construction, with 12.5 percent and Manufacturing, with 8.9 percent.
Meanwhile, Services posted 5.6 percent in 2021. Among the sectors in Services, Human health and social work activities topped the list with the highest growth at
14.6 percent. It was followed by Accommodation and food service activities, with
10.8 percent and Information and communication, with 8.6 percent.
Share of Major and sub-industries
Services accounted for 58.7 percent to the region’s economy in 2021. Industry shared 25.2 percent while Agriculture, forestry and fishing, contributed the least to the total economy of Region XI with 16.1 percent share.
Out of the region’s total Services, the Trade and repair of motor vehicles and motor cycles accounted the biggest with 40.8 percent share; followed by Financial and insurance activities with 12.0 percent share. Other services contributed the least with only 1.8 percent contribution to the total Services in the region.
Meanwhile, Manufacturing had the biggest share to the region’s Industry output, with 45.2 percent; followed by Construction which accounted for 40.0 percent share; Electricity, steam, water, and waste management shared 11.5 percent; and Mining and quarrying contributed the least with only 3.3 percent share.
Of the overall 5.9 percent economic performance of the region, 3.3 percentage points came from Services, 2.5 percentage points from Industry, and 0.1 percentage point contributed by Agriculture,    forestry and fishing.
Davao Region’s investment spending posts highest growth in 2021
Among the expenditure items, Gross capital formation or investment spending posted the highest growth in 2021, with 13.1 percent. It was followed by Imports of goods and services from the Rest of the World, with 8.2 percent; Government final consumption, with  5.9  percent;  and  Household  final  consumption  expenditure  (HFCE),  with
4.7 percent.
Share of expenditure items to the regional economy
In terms of expenditure shares, household spending had the biggest contribution with 65.0 percent followed by gross capital formation with 27.9 percent.
Contribution of expenditure items to the economic
As to the contribution to the overall economic growth of Davao Region, Gross Capital Formation shared the most with 3.4 percentage points, followed by Household Final Consumption,   with   3.1 percentage   points.   Government   spending   shared 0.7  percentage  point  while  Net  Exports  to  Rest  of  the  Philippines  contributed 0.4 percentage point. Net exports to rest of the World pulled down the growth by 1.7 percentage points.
Per Capita GRDP/GRDE
In 2021, the per capita GRDP/GRDE or the value of each Davaoeño contributes to the regional economy stood at 164,214 pesos, translating to an increase of 4.3 percent from the 157,484 pesos recorded per capita in 2020.
Per Capita HFCE
Meanwhile the per capita household final consumption, or the household spending for every person increased by 3.1 percent from 103,522 pesos in 2020 to 106,747 pesos in 2021.
Real per capita HFCE or the household spending of every person increased by 3.1 percent from 103,522 pesos in 2020 to 106,747 pesos in 2021. This was lower than the national level real per capita HFCE of Php 122,112.
Performance of Davao Region vis-à-vis other regions
The Philippine economy grew by 5.7 percent in 2021. Nine out of 17 regions in the country have posted higher rates compared to the rate recorded at the national level. Davao Region was one of these nine regions.
Examining the structure of the Regional Economies, Region IV-A (CALABARZON) was the only region that is predominantly industrial in 2021 while the rest of the regions, including Davao Region, were predominantly services-based economies.
Among  the  17  regions,  Davao  Region  ranked  5th  with  the  highest  per  capita GRDP/GRDE at 164,214 pesos.
Economic performance of Davao Region over the years
The economic performance of Davao region was the lowest in 2021 since 2001 at negative 7.5 percent while the highest was recorded in 2016 at 9.2 percent.
Approved for release:
Regional Director