Gross Regional Domestic Product (GRDP) is a unit to measure the economic performance of a region. It covers the value of goods and services produced in a region.
The GRDP includes the regional estimates on the three major industries of the economy including their sub-industries. The three major industries are Agriculture, Forestry and Fishing (AFF), Industry, and Services.
The GRDP is presented in nominal and real terms. Nominal GRDP measures the value of the outputs of the economy at current prices while real GRDP or at constant prices measure the value of economic outputs using the prices of a fixed base year. The GRDP is usually reported in real terms or constant prices since the effects of inflation are removed.
CAR’s economy declines by -9.9% in 2020
- The economy of the Cordillera Administrative Region (CAR) had a drastic decrease from the 4.4 percent growth in 2019 to -9.9 percent growth in 2020. All three major industries contributed to this decrease in CAR’s economy. Agriculture, Forestry and Fishing (AFF) declined by -2.2 percent, Industry posted a -12.3 percent decrease, and Services sector plunged -10.1 percent.
Growth rate of industry sector
- Industry shown further decrease in growth of -1.8 in 2019 to a stunning -12.3 percent in 2020. This major downfall is a result of all sub-industries yielding a decreased growth rate with the largest negative growth rate being Manufacturing with a -16.3 percent growth and Mining and Quarrying with a -14.2 percent growth from their previous growth rates of -4.1 and 2.7 percent respectively.
Shares of Industries
- CAR shifted from being industry-driven to being service driven back in 2018. This shift in economic distribution was evident still in 2020 as the region’s total output was mainly from the service sector with 66.3 percent share. The industry sector only managed to contribute less than half of that with 23.6 percent. This was a decrease in contribution to 2019’s industry share of 24.3 percent. Meanwhile, the AFF sector contributed 10.1 percent.
- The distribution of sub-industries in the industry sector shows that manufacturing was still the highest contributor at 12.3 percent which is lower than the previous year’s 13.2 percent. Construction followed with more than half of manufacturing’s contribution with 6.8 percent which is a slight increase from 2019’s 6.5 percent.
Contribution to Growth
- The region’s GRDP growth rate was at -9.9 percent in 2020. The industry sector has contributed to -3.0 percentage points to the region’s growth. This was lower than the sector’s contribution in 2019 with the already -0.5 percentage point.
CAR Performance Versus Other Regions
- CAR ranked 13th among the 17 regions, tied with Cagayan Valley and Central Visayas. CAR ranked 15th in 2019 with a GRDP growth rate of 4.4 percent.
- CAR’s Industry sector ranked 9th out of the 17 regional economies with a growth rate of - 12.3 percent in 2019-2020. This is significantly higher than 2018-2019 rank of 17th out of 17 regions with a growth rate of -1.8 percent.
