Cordillera economy grows by 7.5 percent in 2021

•  The total economic output of Cordillera increased from the PhP 288,876,582 GDP in 2020 to PhP 310,587,54 in 2021. This indicated an increase of the gross value added of the production of good and services amounting to PhP21,710,959. From a -10.2 decline rate in 2020, the economy of Cordillera bounced back from the COVID-19 pandemic and recorded a growth of 7.5 percent.
•  Two out of the three major industries contributed to this growth in Cordillera’s economy. Industry expanded by 16.3 percent, and Services posted an incline of 5.9 percent. On the contrary, AFF pulled down the economy with a decline of -1.7 percent.
•  It can be observed that the GRDP of Cordillera recuperated in 2021 but did not yet exceed the 2019 level.

Cordillera services industry recovers with 5.9% growth rate

•  The Services industry of Cordillera inclined from a decline of -10.1 percent in 2020 to a growth of 5.9 percent in 2021.
•  All of the Services sub-industries expanded in 2021. The highest growth rate was recorded by the sub-industries of accommodation and food service activities (AFSA) and human health and social work activities (HHSW), both with 16.2 percent increase. This was followed by education (EDUC) with 8.7 percent and Information and communication (IAC) with 8.6 percent.
•  Among the sub-industries under Services, real estate and ownership of dwellings (REOD) posted the lowest growth rate at 2.0 percent.
•  Although all sub-industries of Services showcased growth in 2021, financial and insurance activities (FIA) was the only sub-industry that recorded a lower growth rate relative to the previous year.

Services industry comprises 65.5 percent of Cordillera economy

•  Cordillera shifted from being industry-driven to services-driven back in 2018. This shift in economic distribution was evident still in 2021 as the region’s total output was mainly from the Services with 65.5 percent share. Industry sector contributed less than half of that with 25.2 percent which was an increase in contribution to 2020’s Industry share of 23.6 percent. Meanwhile, AFF contributed 9.2 percent.
•  Among the sub-industries under Services, only wholesale and retail trade; repair of motor vehicles and motorcycles (TRD) and FIA posted a double-digit share with 17.5 percent and 11.9 percent, respectively.
•  The distribution of sub-industries in the Services sector showed that REOD had the third largest contribution with 7.3 percent share. On the other hand, the industry with the least proportion to Services was posted from other services (OS) with only 1.0 percent share.

Of the 17 regions in the country, Cordillera ranks 15th in overall GRDP

•  Cordillera remained 15th among the regions, with a GRDP of PhP 310,587,541.00 in 2021. This was slightly higher than the 2020 levels of PhP 288,876,582.00 indicating a growth rate of 7.52 percent.
•  As to GVA in services, Cordillera’s services sector ranked 13th among the 17 regions with levels of PhP 203,437,940.00 in 2021 and a growth rate of 5.85 percent.

VILLAFE P. ALIBUYOG
Regional Director

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Technical Notes

Gross Regional Domestic Product (GRDP)

• The aggregate of gross value added (GVA) of all resident producer units in the region.
• Measures the economic performance of a region from the perspective of the producers of goods and services. It covers the value of goods and services produced in the region during the reference period.
• GRDP measures the relative contribution of the 12 industries under Services sector, namely:

- Wholesale and retail trade; repair of motor vehicles and motorcycles
- Transportation and storage
- Accommodation and food service activities
- Information and communication
- Financial and insurance activities
- Real estate and ownership dwellings
- Professional, and business services
- Public administration and defense; compulsory social activities
- Education
- Human health and social work activities
- Other services

Percent Share

•  means the percentage obtained by dividing the aggregate value of the Share Consideration (determined by reference to the Closing Share Price) by the Aggregate Consideration Value.

Constant prices

•  way of measuring the real change in output. A year is chosen as the base year. For any subsequent year, the output is measured using the price level of the base year. This excludes any nominal change in production and enables a comparison of the actual goods and services produced.

Growth Rate

•  refers to the percentage change of a specific variable within a particular time.