Did you know that Northern Mindanao’s purchasing power helped the region’s economy last year (2009)? According to a fact sheet report by the National Statistical Coordination Board (NSCB), personal consumption expenditure contributed much of the region’s growth last year which was marked by a global economic crisis. Maybe, this fact answers why more retail shops and supermarkets are opening in the city — the people’s money is spent here.
Recently, NSCB released the Expenditure on Gross Regional Domestic Product, which estimates the regional economy through expenditure approach; such approach focuses on finding the total output of the region by finding the total amount of money spent.
The Expenditure on Gross Regional Domestic Product showed that Personal Consumption Expenditure (PCE) grew by 4.9 percent amidst the dubbed global financial crisis in 2009, albeit a slow down from its 6.0 percent growth in 2008. PCE provided 3.0 percentage points to the 2.9 percent total regional economic growth, buffering the economy from the declines of the Capital Formation (also known as Investment) and Net Exports, posting negative growths of 16.3 percent and 0.7 percent in 2009 from positive growths of 14.2 percent and 4.1 percent in 2008, respectively. The boost in government spending raised Government Consumption to 9.8 percent in 2009 from 1.0 percent the previous period.
In terms of expenditures in 2009, the regional economy is comprised of 62.0 percent Personal Consumption, 4.3 percent Government Consumption, 10.6 percent Capital Formation, and 23.1 percent Net Exports.