THE NATIONAL Capital Region’s (NCR) economic output expanded by 5.6% in 2024, the fastest pace in two years, the Philippine Statistics Authority (PSA) said on Tuesday.
Preliminary PSA data from the latest regional accounts showed Metro Manila’s economic expansion in 2024 was faster than 4.9% in 2023, and the fastest since the 7.6% print in 2022.
However, NCR’s economic output was a tad slower than the revised 5.7% national gross domestic product (GDP) in 2024.
“[The NCR’s] economy’s growth rate is not remarkable, but it is enough to see that we are not in a downward trend,” PSA-NCR Regional Director Paciano B. Dizon said during the briefing.
The size of NCR’s economy at constant 2018 prices reached P6.94 trillion last year, higher than P6.57 trillion in 2023.
Metro Manila was still the largest contributor to the overall Philippine economy with a 31.2% share, followed by Calabarzon (14.7%) and Central Luzon (11.1%).
Central Visayas grew by 7.3% in 2024, the fastest among 18 regions. This was followed by Caraga (6.9% from 4.8% in 2023), and Central Luzon (6.5% from 6.1%).
On the other hand, the Bangsamoro Autonomous Region in Muslim Mindanao posted the slowest growth among the 18 regions with 2.7% in 2024 from 4% in 2023. It was followed by Zamboanga Peninsula (4.2% from 4.5%) and Western Visayas (4.3% from 6.8%).
In 2024, nearly 83% of NCR’s output was driven by the services sector. The sector grew by 5.9%, slightly faster than 5.7% in 2023.
The growth of the wholesale and retail trade sector, which accounted for 22.5% of the services sector, eased to 4.1% last year from 4.4% in 2023.
Financial and insurance activities expanded by 8.4%, slightly faster than 8% in 2023, followed by professional and business services which rose by 7% from 5.9% in 2023.
Nicholas Antonio T. Mapa, a senior economist at the Metropolitan Bank & Trust Co., said that slower inflation contributed to the faster growth in NCR last year.
“Sustainability in the region’s services sector also helped boost the regional economy. However, it was slightly offset by the slowdown in the agricultural sector brought by extreme weather conditions,” he said in an e-mail.
In 2024, headline inflation averaged 3.2%, lower than the 6% average in 2023. In NCR, inflation also eased to 2.6% last year from 6.2% in 2023.
The total value of Metro Manila’s service industry reached P5.76 trillion in 2024, higher than P5.44 trillion in 2023.
Meanwhile, the industry sector, which accounted for 17.1% of the NCR economy, rose by 4% last year, faster than 1.3% in 2023.
The growth of agriculture, which accounted for 0.01% of Metro Manila’s economy, eased to 0.8% in 2024 from 5.4% in 2023.
By sectoral output, the Negros Island Region had the fastest growth in services with 8.5% in 2024 (from 7.9% in 2023), followed by Caraga (8% from 7.5%) and Central Visayas (7.6% from 8.6%).
At the same time, the Negros Island Region’s industry sector posted the quickest growth at 9.8% expansion in 2024 from 8% in 2023.
Meanwhile, Central Visayas’ agricultural output grew by 5.4% last year (from 4.5% in 2023), the fastest among the regions.
On the expenditure side, Central Visayas logged the highest growth in household spending with 7.7% in 2024 from 6.2% in 2023.
Meanwhile, government spending growth was the fastest in NCR at 9.9% last year, a turnaround from the 2.1% contraction in 2023.
Davao Region had the quickest expansion in gross capital formation at 17% last year, slower than 6.3% in 2023.
On a per-capita basis, Metro Manila still had the largest gross regional domestic product at P503,483 last year, up 5% from P479,415 in 2023.
“Economic growth in NCR and the rest of the Philippines will remain robust as long as domestic demand is sustained — lower interest rates and easing inflation will definitely help boost domestic demand,” Mr. Mapa said. — Matthew Miguel L. Castillo
