Baguio City's Strong Economic Growth in 2022
In 2022, Baguio City's economy surged by 11.3 percent, marking the highest growth among Cordillera provinces. According to the Provincial Product Accounts (PPA) by the Philippine Statistics Authority-Cordillera, the city's economic performance leaped from 10 percent in 2020 to an impressive 11.3 percent in 2022.
But that's not all - the Cordillera region itself emerges as the 2nd Fastest Growing Economy in the country for the same period. Join us on this journey as we dissect the sectors driving Baguio's economic surge and explore the broader regional context that positions Cordillera among the nation's economic leaders.
Steady Growth
Chief Statistical Specialist Aldrin Bahit, Jr. underscored this growth, with the gross value added escalating from P139.28 billion in 2021 to a robust P155.03 billion in 2022 (constant 2018 prices).
Sectors at Play
Driving this growth were three key sectors: services (72.9 percent), industry (26.6 percent), and agriculture, forestry, and fishing (AFF) (0.6 percent). Notably, all three witnessed growth in 2022.
Leading Industries
Breaking it down, all 16 industries experienced growth in 2022, with the top three related to tourism. Transportation and storage surged by an impressive 63.6 percent, accommodation and food services by 50.6 percent, and other services by 47.1 percent.
Travel Influence
Bahit attributed this remarkable performance to eased travel restrictions and the "revenge travel" trend, significantly impacting the growth of these industries.
Economic Drivers
In Baguio's economic landscape, manufacturing (21.3 percent), wholesale and retail trade (16.3 percent), and financial and insurance activities (14.3 percent) emerged as key players, collectively making up over half of the economic activities.
Per Capita Success
Baguio's per capita GDP reached P420,020, reflecting a commendable 10.05 percent increase from 2021, surpassing not only regional but also Cordillera's per capita GDP.
Regional Standout
Baguio's growth outpaced other Cordillera provinces, with Kalinga, Abra, and Mountain Province following suit. The city contributed 45.9 percent to Cordillera's total GDP.
PPA Impact
The PPA, introduced in 2021, provides a comprehensive, inflation-adjusted assessment of provincial economic performance, offering valuable support for local decision-making.
Conclusion: A Resilient Economic Beacon
In conclusion, Baguio City's economic success in 2022 stands as a beacon of resilience and adaptability. With key sectors propelling growth and positive indicators, Baguio not only shines regionally but also on a national scale. The city's steady growth sets a noteworthy benchmark for regional economic development, showcasing the strength and dynamism of its economic landscape.
