Construction investments rise to P517.2 B in 2012

MANILA, Philippines - Investments in construction across the country reached P517.2 billion in 2012, 15.1 percent higher than the 2011 level of P449.4 billion, according to the National Statistical Coordination Board (NSCB).

Among the regions, Eastern Visayas posted the fastest growth in construction investments as it turned around from a decline of 15.2 percent in 2011 to a growth of 30.6 percent in 2012.

Trailing behind were Zamboanga Peninsula, Western Visayas and Bicol Region, which likewise rebounded from declines to record 28 percent, 24.7 percent and 24.5 percent growth, respectively.

Meanwhile, Central Luzon and Northern Mindanao exhibited accelerated growths of 14.9 percent and 10.1 percent from 4.3 percent and 8.7 percent, respectively.

The rest of the regions recorded growth in 2012 except ARMM, which declined 10.2 percent.

NSCB secretary general Jose Ramon G. Albert said investments in construction are one of the components of gross fixed capital formation (GFCF) along with durable equipment (DE), breeding stocks, orchard development (BSOD) and intellectual property products (IPP).

Relatedly, GDCF, composed of GFCF and changes in inventories, together with household final consumption expenditure (HFCE), government final consumption expenditure (GFCE) and net exports are expenditure items under the country’s gross regional domestic expenditure (GRDE).

GRDE in 2012 was valued at P6.3 trillion at constant 2000 prices, 6.8 percent higher than its 2011 level of P5.9 trillion.

GRDE is the sum of all final uses of goods and services in the regional economies during the year.

The economy zoomed 7.8 percent in the first three months of 2013, the highest since 7.3 percent in the third quarter of 2012.

In the first quarter of 2012, gross domestic product (GDP) expanded 6.4 percent. For the whole of 2012, GDP marched to a strong 6.8 percent growth from 3.9 percent in 2011.

Socioeconomic Planning Secretary Arsenio M. Balisacan said strong infrastructure spending played a major role in the outstanding first quarter performance.