Northern Mindanao economy grows by 5.3% in 2023 – PSA

CAGAYAN DE ORO CITY (PIA) — The economy of Northern Mindanao expanded by 5.3 percent in 2023, according to the Philippine Statistics Authority (PSA).

This growth is translated to an increase of P49.5 billion in the region’s gross domestic product (GDP).

PSA regional director Janeth Aves noted that the 5.3 percent growth rate represented a slowdown from the 7.2 percent  expansion recorded in the previous year, primarily due to sluggish growth across all major industries.

“Industry grew by 3.8 percent in 2023 from the 6.6 percent growth in the previous year. In addition, services recorded a growth of 7.8 percent in 2023 from 10.1 percent in the previous year. Agriculture, forestry, and fishing grew by 0.3 percent in 2023 from a 0.5 percent growth in 2022,” stated Aves in a news conference called by the PSA on April 25.

Despite the moderation in growth, Northern Mindanao maintained its standing as one of the fastest-growing regional economies, ranking ninth  nationwide and second among the regions in Mindanao, following Davao.

Aves also emphasized in her report the region’s predominant reliance on services, constituting 55.8 percent of the total economy, equivalent to P549.62 billion in gross value added (GVA). Industry followed with a GVA of P247.94 billion, representing 25.2 percent, while agriculture, forestry, and fishing (AFF) accounted for 19 percent of the region’s GDP with a GVA of P187.20 billion.

She pointed out that Northern Mindanao’s GVA in industry shared four percent of the total industry of the country, ranking as the sixth largest share among the 17 regions. Additionally, the region’s AFF also ranked as the second largest share among the regions in terms of the country’s AFF, accounting for 10.4 percent.

National Economic and Development Authority (NEDA) regional director Mylah Faye Aurora Cariño noted specific trends within sub-sectors under services, indicating modest growth in select areas. However, she underscored that these growths were insufficient to drive overall sectoral expansion, as these sub-sectors only accounted for a combined share of less than 10 percent.

On the expenditure side, she said household spending decreased from 8.4 percent in 2022 to 5.7 percent in 2023, a manifestation that spending in households was stabilized.

“We noted that there was a decline in food and non-alcoholic beverages, which accounted for most of household spending. This reflected the effects of increased food prices in the region or changes in preferences or spending patterns. In 2023, Northern Mindanao recorded an inflation rate of 6 percent, which is marginally higher by 0.2 percentage points than in 2022 and notably the highest since 2010,” she said.

Mylah Faye Aurora B. Cariño, regional director of the National Economic and Development Authority (NEDA)-10, emphasized during the news conference on the 2023 regional economic performance held on April 25, 2024, that the economy of northern Mindanao still expanded in 2023, but at a much slower rate. (Photo by: DCC/PIA-10)

Despite the slower growth pace in 2023, Cariño maintains an optimistic outlook and expresses enthusiasm about prospects. “We’re happy that we grew but, we have to face the reality that there’s still so much that needs to be done. We’ve come a long way, but there’s still so much that needs to be done,” she stressed.

The PSA released the 2023 regional accounts through simultaneous news conferences on the GRDP and the Gross Regional Domestic Expenditure (GRDE) of the 17 regions in the country. The release aims to provide policymakers and stakeholders with a comprehensive picture of the regional economies, which will serve as an important tool for planning and policy formulation at the regional level.

The GRDP measures the economic performance of the region from the perspective of the producers of goods and services, covering the value of goods and services produced in the region during the reference year. On the other hand, the GRDE measures the economic performance of the region from the perspective of the expenditures of the residents of the region. (APB/PIA-10)

In other News
Skip to content