BAGUIO CITY – The Cordillera office of the Philippine Statistics Authority (PSA-CAR) disclosed that the economy of the region had a drastic decrease from the 4.4 percent growth in 2019 to negative 9.9 percent growth in 2020 where all three major industries contributed to the significant reduction in the economy.
The PSA-CAR stated that agriculture, forestry and fishing declined by negative 2.2 percent, industry posted a negative 12.3 percent decrease and services sector plunged negative 10.1 percent.
The gross regional domestic product (GRDP) is a unit to measure the economic performance of a region which covers the value of goods and services produced in the region. The GRDP includes the regional estimates on the 3 major industries of the economy including their sub-industries. The 3 major industries are agriculture, forestry and fishing, industry and services.
The PSA-CAR noted that industry showed further decrease in growth of negative 1.8 in 2019 to a stunning negative 12.3 percent in 2020 where the said major downfall is a result of all sub-industries yielding a decreased growth rate with the largest negative growth rate being manufacturing with a negative 16.3 percent growth and mining and quarryi8ng with a negative 14.2 percent growth from their previous growth rate of negative 4.1 and 2.7 percent, respectively.
On the other hand, the PSA-CAR stipulated that the Cordillera shifted from being industry-driven to being service-driven back in 2018 and that the said 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.
According to the PSA-CAR, the industry sector only managed to contribute less than half of the same with only 23.6 percent which was a decrease in contribution to 2019’s industry share of 24.3 percent.
Meanwhile, the agriculture, forestry and fishing sector contributed 10.1 percent compared to the negative growth rates of the other sectors.
Manufacturing was still the highest contributor at 12.3 percent which is lower than the previous years 13.2 percent and 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.
Of the region’s negative 9.9 percent growth in 2020, the industry sector has contributed negative 3.0 percentage points to the same which is lower than the sector’s contribution in 2019 with the already negative 0.5 percentage points.
The Cordillera ranked 13th among the 17 regions tied with Cagayan Valley and Central Visayas in terms of economic growth. In 2019, the Cordillera ranked 15th with a GRDP growth rate of 4.4 percent.
GRDP 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. By HENT