Metro Manila economy expands 6.6% in 2015

Metro Manila’s economy valued at P2.77 trillion in 2015 grew at a faster pace of 6.6. percent, still driven by the services sector, the NCR division of the Philippine Statistics Authority (PSA) reported yesterday.

In a briefing, PSA NCR director Rosalinda Bautista said even if the capital is no longer the fastestgrowing region in the country, it accounted for the largest contribution (36.5 percent) to the country’s gross domestic product (GDP) in 2015 valued at P7.59 trillion at constant 2000 prices.

The services sector in Metro Manila accounted for 81.1 percent of NCR’s economy in 2015, growing 6.6 percent. Output was driven by trade and repair; real estate renting and business activities; and transportation, storage and communication subsectors.

Also registering strong growth was the industry sector which grew 6.5 percent, driven by manufacturing; construction; as well as energy, gas and water supply.

As is traditional, agriculture and fisheries grew 4.1 percent, being a non-major industry in Metro Manila.

NCR topped the 13 regions in the country whose economies were predominantly service-based. The others were regions I, II, IV-B, V, VI, VII, VIII, IX, X, XI, XII and XIII.

Regions that were predominantly industrial were CAR, Region III and Region IV-A.

The Autonomous Region in Muslim Mindanao (ARMM), which registered a decline of 0.8 percent in 2015, was a predominantly agricultural region.

Bautista noted the negative growth in ARMM pulled down the 2015 national GDP of 5.9 percent.

“If ARMM had positive growth, 5.9 percent would have been higher,” she said.

Compared to the national level, the per capita gross regional domestic product of NCR – the total output divided by its population – was significantly higher at P219, 114 in 2015, up from P203, 231 in 2014. The national per capital GDP was only placed at P74, 770 in 2015, up from P71, 790 in 2014.

NCR was the fourth fastestgrowing region in the country, the first being Bicol which registered a growth rate of 8.4 percent, followed by Western Visayas, 8.3 percent; and Davao Region, 7.9 percent.

Bautista said while Metro Manila’s economy is growing, the effects would only be felt if growth is sustained at a level of around seven percent level for a period of time combined with a decrease in population.

NCR’s economy showed a consistent, albeit fluctuating growth trend in the past four years. From a growth rate of seven percent in 2012, the capital’s economy grew faster by 9.2 percent. It slowed down to 5.9 percent in 2014 before rising again last year.

“Economic growth is a measure of the economy, not living standards. If there is consistent growth, this would translate to more jobs and more money in the pockets of Filipinos,” she said. “If the economy grows consistently and population goes down, that is when growth will be felt.”