The economy of CALABARZON in 2018 recorded its fastest pace at 7.3 percent in the past six years. The acceleration was brought about by the faster growth of Industry and Services, as well as the turn-around performance of Agriculture, Hunting, Forestry and Fishing (AHFF).
Among the three major economic industries, Industry continued to account the largest share at 62.3 percent of the region’s economy; followed by the Services with 32.9 percent share. AHFF had the least share of 4.8 percent.
Industry grew at a faster pace with 7.9 percent in 2018, from 7.8 percent in 2017. It was mainly driven by an upswing of the Manufacturing sub-industry to 8.0 percent growth from the 7.4 percent growth in the previous year. Construction also contributed to the upward trend in Industry recording a growth of 9.5 percent, although slower than the 15.6 percent growth in 2017. Electricity, Gas and Water Supply posted a faster growth of 3.9 percent in 2018 from 3.4 percent in 2017. Moreover, Mining and Quarrying accelerated to 3.5 percent in 2018 from 1.0 percent in 2017.
Services expanded to 7.1 percent in 2018 from 6.0 percent in 2017 due to the faster growth recorded in most of its sub-industries. Public Administration and Defense, Compulsory Social Security was the fastest growing sub-industry at 15.5 percent from 8.9 percent in 2017. Other sub-industries which posted acceleration were Other Services which grew by 11.0 percent; Financial Intermediation by 8.8 percent; Trade by 5.8 percent; and Transportation, Storage and Communication by 4.5 percent. On the other hand, Real Estate, Renting and Business Activities grew but at a slower pace of 6.0 percent as compared with the 6.9 percent growth in the previous year.
AHFF rebounded to 0.7 percent in 2018, from a decline of 0.6 percent in 2017. This is attributed to the acceleration in Agriculture and Forestry at 2.7 percent from 0.8 percent growth recorded in 2017. On the other hand, Fishing further declined by negative 6.4 percent in 2018 from negative 5.4 percent in 2017.
Out of the 7.3 percent growth of the region in 2018, Industry remained the biggest contributor at 4.9 percentage points followed by Services with 2.4 percentage points. AHFF contributed the least with 0.03 percentage point.
CHARITO C. ARMONIA
PSA Region IV-A