Metro Manila (CNN Philippines, April 29) — The National Capital Region’s economy nosedived to a record low in 2020 as it took a beating amid the COVID-19 pandemic and natural disasters throughout the year.
The Philippine Statistics Authority reported on Thursday a 10.1% contraction for the region last year, the worst ever recorded since the agency began its regional series in 2000. This is a sharper decline than the 9.6% full-year shrinkage the overall national economy logged for that year.
The capital region’s anemic economic performance in 2020 was caused by the prolonged quarantine restrictions — which dampened business and consumer confidence — along with the eruption of Taal Volcano early into the year and typhoons during the latter part of the year, PSA-NCR regional director Paciano Dizon pointed out during a media briefing.
The poor record was also the third worst among regions, next to nearby Calabarzon which posted a10.5% retreat and Central Luzon with a 13.9% slump. These three regions accounted for 57.9% of the country’s 2020 economic output, according to the PSA data.
“It is the interdependence of the three major regions, and also restrictions on physical movement of people that created job losses and income losses,” noted National Economic and Development Authority Assistant Secretary Greg Pineda.
Negative economic performance was observed across all regions in 2020, with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) posting the mildest decline at -1.9%. SOCCSKSARGEN followed with -4.3%, while Northern Mindanao and Zamboanga Peninsula both trailed behind at -5.2%.
All regions are predominantly services-led, the PSA noted, a reflection of the sector’s overall -7.2% plunge in 2020. Calabarzon is the sole region that is industry-based, with the sector logging a -13.9% drop overall last year.
Household spending likewise contracted for all regions, with NCR recording the worst drop at 8.5% along with Bicol Region and Western Visayas. Cagayan Valley came next at -8.4% and llocos Region at -8.1%.
However, all regions saw government spending grow in 2020, the PSA reported. Northern Mindanao posted the highest growth in state expenditure of 13%, followed by Zamboanga Peninsula 12.5% and Davao Region with 11.9%.
