Davao Region’s economy grew by 5.1% in 2025, and remained as one of the Philippines’ top-performing regional economies, despite facing natural disasters and governance-related challenges. The report was presented by the Philippine Statistics Authority XI during the release of the 2025 Regional Accounts in Davao Region on April 23, 2026.
The region’s gross regional domestic product (GRDP) reached ₱1.137 trillion, maintaining its status as the largest economy in Mindanao and the fifth largest nationwide. The growth rate, while slightly lower than the 6.3 percent recorded in 2024, still exceeded the national average of 4.4 percent and placed Davao Region among the fastest-growing regions in the country.
The services sector remained the primary driver of growth, expanding by 6.9 percent, supported by strong performance in wholesale and retail trade and public administration. Agriculture also posted a modest recovery, growing by 1.9 percent after a contraction in the previous year. However, the industry sector significantly slowed to 2.7 percent, weighed down by weak construction activity, limited utilities expansion, and stalled mining operations.
On the demand side, household consumption continued to anchor the regional economy, accounting for 63.4 percent of total output and contributing the largest share to overall growth. Public spending also accelerated, reflecting increased government expenditures, while investments showed mixed performance due to a sharp slowdown in infrastructure-related capital formation.
Despite these challenges, the region maintained strong macroeconomic fundamentals, with low inflation averaging 0.7 percent and high employment levels at 96.7 percent.
Looking ahead, DEPDev XI cautions that economic risks may persist in 2026, particularly from global oil price volatility linked to ongoing geopolitical tensions, as well as domestic governance concerns that could affect public spending and investor confidence.
To sustain growth and enhance resilience, the regional government is prioritizing the resumption of infrastructure projects, modernization of agriculture, and expansion of the services sector. Targeted interventions are also being implemented to mitigate inflationary pressures and support vulnerable sectors, including transport workers and farmers.
Officials emphasized the need for stronger collaboration among government agencies, local government units, and the private sector to ensure that economic gains in Davao Region remain inclusive and resilient amid evolving challenges.
