MANILA, Philippines - The economy of the National Capital Region grew at a slower pace of 5.9 percent in 2014 compared to 9.2 percent recorded in 2013, the national data agency said.
“It mirrored the rate of economic growth in the entire country, or from 7.1 percent in 2013 to a lower 6.1 percent in 2014,” said Lourdes V. Homecillo, Philippine Statistics Authority (PSA) NCR interim regional director, in a presentation Thursday.
NCR’s gross regional domestic product (GRDP) accounts for a third of the country’s economy. It remains the largest among the 17 regional economies with 36.3 percent (approximately P2.38 trillion) of the country’s GDP valued at P7.13 trillion.
Region IV-A or Calabarzon (17.2 percent), Mindanao (14.4 percent), the rest of Luzon (10.3 percent), Region III or Central Luzon (9.3 percent), Region VII or Central Visayas (6.5 percent), and the rest of Visayas (5.9 percent) are the other top regional economies.
The services sector remains the primary economic driver in NCR while agriculture had the least contribution at a mere 0.2 percent. The region, the services sector accounted for 81 percent or approximately P2.1 trillion of total GRDP, while industry accounted for only 18.8 percent.
Under the services sector, the leading sub-sector is the trade and repair of motor vehicles, motorcycles, personal and household goods accounting for 28.5 percent followed by 16.8 percent share of real estate, renting and business activities, financial intermediation, public administration and defense; compulsory social security; and other services.
The performance of the trade and repair sub-sector clearly reflects the continued surge in private consumption, a major stimulant of the Philippine economy. Sales of automobile and motorcycles continue at record levels.
The real estate and renting sub-sector, which includes the tourism industry, likewise recorded an average annual market share of a little over 16 percent.
The same is true with the financial intermediation sub-sector, which likewise cemented its hold of third best performing service sub-sector in a three-year span.
However, the growth rate of the financial intermediation sub-sector experience a slowdown of 6.4 percent in 2014, compared to the faster pace 11.7 percent in 2013. This sub-sector includes banks, non-bank financial institutions, pawnshops, lending and leasing firms.
In contrast, the real estate sub-sector registered a faster growth rate. From the 9.4-percent growth rate in 2013, it accelerated to 11.9 percent last year.