The economy of the Bicol Region expanded to 5.7 percent in 2016, slower than the 8.9 percent growth recorded in 2015. Industry and Services spurs the region’s economy albeit recording decelerated growths.
Services remained the largest contributor to the region’s economy at 56.7 percent followed by Industry at 23.2 percent and Agriculture, Hunting, Forestry and Fishing (AHFF) at 20.0 percent. The shares of Industry and Services to the total economy improved in 2016. Industry increased by 0.5 percentage point and Services up by 0.6 percentage point while AHFF share to the total economy decreased by 1.2 percentage points.
Industry grew by 8.4 percent in 2016 from a 25.0 percent expansion in 2015. Manufacturing boosted the Industry’s growth surging by 12.0 percent from the 3.7 percent in 2015. Mining and Quarrying improved to 9.0 percent in 2016. Electricity, Gas and Water Supply (EGWS) slowed down to 9.0 percent from 14.1 percent the previous year. Similarly, Construction plunged to 7.1 percent from 42.5 percent expansion in 2015.
Services posted a slower 6.9 percent growth in 2016 from 7.9 percent performance in 2015. Except for Financial Intermediation, and Public Administration and Defense; Compulsory Social Security (PAD), all sub-industries recorded slowdowns. Growth of Financial Intermediation improved to 11.0 percent from 7.1 percent in 2015 while PAD expanded to 6.1 percent, more than double its pace in 2015. On the other hand, Transportation, Storage and Communication decelerated to 6.3 percent from 10.1 percent growth in 2015. Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods dropped to 6.4 percent, slower than the 7.7 percent a year ago. Growth of Real Estate, Renting and Business Activities declined to 1.9 percent from 3.2 percent in 2015. Other Services down to 9.7 percent from 14.2 percent expansion in 2015.
AHFF improved but still at negative 0.2 percent growth in 2016. The 4.8 percent contraction in the Fishing sub-industry pulled down the performance of the AHFF sector. Agriculture, Hunting and Forestry sub-industry increased to 1.4 percent from 0.4 percent growth in 2015.
The Service sector was the biggest contributor to the Bicol Region’s economic performance in 2016 accounting for 3.9 percentage points of the 5.7 percent growth. Industry contributed 1.9 percentage points, while AHFF’s share was negative 0.1 percentage point.