The latest report on the performance of the different regions of the country shows that the Central Visayas Region grew by 7.6 percent in 2018 in real terms at constant 2000 prices, up from 5.2 percent in 2017.
The use of constant prices is to remove the effect of inflation. With inflation, the region grew by 11.9 percent in 2018 in nominal terms at current prices. The difference between the real and nominal growth rates is the implicit inflation rate of the region.
The implicit inflation rate refers to the overall increase in prices of all the goods and services produced by the region.
The implicit inflation rate is different from the headline inflation rate reported by the government every month. The headline inflation rate measures only the overall increase in prices of all consumer goods and services normally consumed by households.
As of 2018, the Central Visayas Gross Regional Domestic Product (GRDP) was measured at 1.157 trillion pesos at current price (593.9 billion pesos at constant 2000 prices). This was equivalent to 6.6 percent of the Philippine GDP, which amounted to 17.426 trillion pesos at current prices in the same year.
The region’s GRDP was the fourth largest among the 17 regions in the country. The National Capital Region (NCR) or Metro Manila with 6.535 trillion pesos or 37.5 percent of the Philippine GDP was the largest. In second place was Calabarzon with 2.571 trillion pesos or 14.8 percent, followed by Central Luzon in third place with 1.620 trillion pesos or 9.3 percent.
In fifth place after Central Visayas was Davao Region with 816.9 billion pesos or 4.7 percent of the Philippine GDP.
While Central Visayas grew by 7.6 percent in 2018 in real terms, the NCR grew only by 4.8 percent, Calabarzon by 7.3 percent, and Central Luzon by 7.1 percent.
The 7.6 percent economic growth rate of the Central Visayas was the fourth highest among the regions in 2018. First was Bicol Region with 8.9 percent, followed by MIMAROPA and Davao with 8.6 percent each.
The 2018 growth of Central Visayas was due mainly to the 9.5 percent growth in the industry sector and 7.0 percent growth in the services sector. Agriculture grew only by 1.4 percent.
The region’s 9.5 percent growth in the industry sector was led by construction with 14.2 percent, and manufacturing with 8.3 percent. The utilities subsector consisting of electricity, gas, and water grew only by 2.8 percent while mining and quarrying declined by 7.3 percent.
Overall, in nine years from 2009 to 2018, the Central Visayas economy grew in average at 7.8 percent annually. This is the fastest among the 17 regions in the country. Next fastest were Central Luzon and Davao which grew by 7.7 percent each.
The Philippine GDP grew in average by 6.3 percent in the last nine years. With Central Visayas growing at 7.8 percent in the same period, this implies a growth elasticity of 1.23 percent of the region with respect to the whole country. This means that for every one percent growth of national economy, the region will grow by 1.24 percent.
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