The Provincial Product Accounts (PPA) is a mechanism to compile the Gross Domestic Product (GDP) using the production approach and other economic accounts at the subregional level. Complementing the GDP at the national and regional level, PPA is viewed to measure the economic performance at the provincial level and to monitor economic development or progress. Further, the compilation of PPA will help strengthen the planning and decision-making of provincial policymakers and stakeholders in crafting more informed economic policies. Using the SNA framework, the PPA serves as an opportunity not only to provide macroeconomic statistics level but also to strengthen statistics to address data gaps at the subregional level.

Kalinga’s economy posts a 6.0 percent growth in 2023.

The economy of Kalinga grew by 6.0 percent from its level in 2022, making a slower pace than the previous year’s growth. This shows an increase in Gross Domestic Product (GDP) from  Php 27.14 billion in 2022 to Php 28.76 billion in 2023. (Figure 1)

Per capita GDP is the estimated average contribution of each individual to the total Gross Domestic Product. It is computed by dividing the GDP of the Province by the total population of the province. 

The Per Capita GDP of Kalinga was estimated at 128,394 pesos in 2023, 5.4 percent higher than the 121,780 pesos recorded in 2022. (Figure 2)

The economy was driven by three major industries, namely: Services, Industry, and Agriculture, Forestry, and Fishing (AFF). Among these, the Services sector contributed the biggest share accounting for 68.1 percent of the total economy of Kalinga. Followed by Industry, with a share of 18.7 percent. Meanwhile, Agriculture, forestry, and fishing had a share of 13.2 percent. (Figure 3)

Transportation and storage drives Kalinga’s economy in 2023.

Among the 16 industries, Transportation and storage boosted the economic performance of the province with 76.3 percent, followed by Other services with 22.2 percent, and Accommodation and food service activities, which recorded 20.4 percent.

On the other hand, Public administration and defense; compulsory social security, Mining and quarrying, and Agriculture, forestry, and fishing experienced negative growth rates, declining by 4.4, 2.5, and 0.2 percent, respectively. (Figure 4)

In terms of Contribution to growth, all contributed positively to the growth of the economy except for Mining and Quarrying, Agriculture, forestry and fishing, and Public administration and defense; compulsory social security. Major contributors to the 6.0 percent growth were Wholesale and retail trade: repair of motor vehicles and motorcycles, and Transportation and Storage, both with 1.8 percentage points. Accommodation and food service activities with 0.7 percentage points and Financial and insurance activities contributed 0.5 percentage points to the growth of the Province of Kalinga in 2023. (Figure 5.)

Technical Notes

The System of National Accounts (SNA) is an internationally agreed standard set of recommendations on how to compile measures of economic activity in accordance with strict accounting conventions based on economic principles.

Gross Domestic Product (GDP) is a comprehensive measure of economic activity. It measures the value of all final goods and services produced within the economy in a given period of time.

GDP at constant prices is also known as real GDP, is the inflation-adjusted measure of GDP that allows us to determine if the increase in output value is due to higher production rather than price increases. In the Philippines, GDP at constant prices is valued at 2018 prices.

The production Industries:

A. Agriculture, Forestry, and Fishing 

B. Industry 

1. Mining and quarrying 

2. Manufacturing 

3. Electricity, steam, water, and waste management 

4. Construction 

C. Services 

1. Wholesale and retail trade; repair of motor vehicles and motorcycles 

2. Transportation and storage 

3. Accommodation and food service activities

4. Information and communication 

5. Financial and insurance activities 

6. Real estate and ownership of dwellings 

7. Professional and business services 

8. Public administration and defense; compulsory social activities 

9. Education 

10. Human health and social work activities 

11. Other services

sgd.
BONIFACIO G. CALIZAR JR.

/ECC