The Gross Regional Domestic Product (GRDP) of the Cordillera Administrative Region (CAR) grew by 3.5 percent in 2006 from 0.7 percent in 2005. The rebound of the agriculture, fisheries and forestry ( AFF) and the industry sectors cushioned the deceleration of the services sector.

The AFF sector, which comprised 12.7 percent of the regional economy, expanded by 5.2 percent in 2006, up from a decline of 0.9 percent the previous year. This growth was due to the sizeable improvement in both palay and corn output and the positive growth of other major crops. Improvement in yield was attributed to the use of hybrid seeds for palay, the increase in area harvested for corn, and farm inputs support.

The services sector, which accounted for 24.4 percent of the GRDP of CAR, decelerated from 5.7 percent in 2005 to 5.4 percent in 2006. Private services remained the fastest growing subsector at 7.0 percent due to the continued expansion of business process outsourcing (BPO) firms such as call centers and the substantial increase in visitor arrivals. Finance and government services accelerated to 4.9 percent and 5.2 percent, respectively in 2006. Transport, communication and storage (TCS) and trade continued to grow but at the slower pace of 4.1 percent and 4.5 percent, respectively.

The industry sector, which contributed 62.8 percent to the domestic product of CAR, recovered from a negative 0.7 percent growth in 2005 to post a 2.4 percent growth in 2006. Construction posted a dramatic 8.3 percent growth in 2006 due to the increase in public infrastructure, a turnaround from its negative 10.8 percent growth in the previous year. Manufacturing accelerated by 5.2 percent due to the increase in exports from the region's industrial zone. The sector's growth was offset by mining and quarrying which contracted to negative 9.1 percent in 2006 and electricity and water which declined to negative 1.9 percent.

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 Gross Domestic Product (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 yearly by the National Statistical Coordination Board (NSCB).

BENJAMIN Y. NAVARRO
Head, NSCB-CAR