The economy of the Bicol Region accelerated to 8.4 percent in 2015, almost double its pace in 2014. Consequently, the region topped in terms of growth among other regions nationwide. Industry accelerated faster than Services, but both boosted the region’s economy.
Services remained the largest contributor to the region’s economy at 56.1 percent followed by Industry at 22.5 percent and Agriculture, Hunting, Forestry and Fishery (AHFF) at 21.3 percent. The share of Industry to the total economy improved by 2.8 percentage points in 2015 from 19.7 percent in 2014 while shares of AHFF and Services decreased in 2015.
Industry expanded at a faster rate of 23.7 percent in 2015 from its 5.3 percent growth in 2014. Construction spurred Industry’s growth surging by 39.7 percent, way above the 1.9 percent growth in 2014. Mining and Quarrying rebounded to 8.5 percent from a 19.1 percent slump in 2014. Electricity, Gas and Water Supply (EGWS) slowed down to 13.9 percent from 14.7 percent the previous year. Similarly, Manufacturing declined to 3.7 percent from 19.0 percent in 2014.
Services sustained its momentum growing by 7.5 percent in 2015 from 5.4 percent performance the previous year. Except for Transportation, Storage and Communication (TSC) and Other Services, all sub-industries recorded decelerated growths. TSC grew by 10.1 percent from 3.9 percent in 2014 while Other Services increased to 12.1 percent from 3.7 percent a year ago. On the other hand, Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods declined to 7.7 percent from 10.1 percent in 2014. Financial Intermediation grew by 7.1 percent, slower than the 7.5 percent in 2014. Growth of Real Estate, Renting and Business Activities dropped to 3.2 percent in 2015. Public Administration and Defense; Compulsory Social Security (PAD) slipped to 2.7 percent from 5.6 percent in 2014.
The growth of the AHFF declined to a negative 2.3 percent in 2015 due to the 9.4 percent contraction in the Fishing sub-industry. Agriculture and Forestry grew by 0.4 percent, a slowdown from its 1.9 percent expansion in 2014.
Industry was the largest contributor to the Bicol Region’s economic performance in 2015 accounting for 4.7 percentage points of the 8.4 percent growth. Services contributed 4.2 percentage points, while AHFF’s share was negative 0.5 percentage point.