By Benjamin Cuaresma
MANILA, Philippines — Luzon continued to command the country’s economic landscape in 2025, with nine of the Philippines’ 10 largest local economies coming from the island, according to the Philippine Statistics Authority (PSA).
The lone exception was Davao City, which entered the top 10 after overtaking Baguio City.
Four highly urbanized cities in the National Capital Region (NCR), three provinces in Calabarzon, and two provinces in Central Luzon comprised the rest of the country’s biggest local economies, based on the PSA’s latest economic and poverty statistics released Aug. 26.
Quezon City remained the country’s largest local economy, generating about P1.4 trillion, equivalent to 6 percent of national gross domestic product (GDP). Its economy expanded from P1.3 trillion in 2024.
Makati City retained second place, contributing 5.5 percent of national GDP as its economy grew to P1.27 trillion, from P1.204 trillion a year earlier.
Laguna ranked third with a 4.9-percent share of the national economy, increasing its economic output to P1.14 trillion from P1.08 trillion in 2024.
Manila remained fourth, accounting for 4.6 percent of national GDP, with its economy rising to P1.06 trillion from P1.039 trillion.
The four local economies remained unchanged in their respective rankings from the previous year and were the only ones to surpass the P1-trillion mark.
Cavite placed fifth with an economy valued at P875.67 billion, followed by Batangas at P713.22 billion, equivalent to 3.1 percent of national GDP.
Bulacan ranked seventh at P694.81 billion, or 2.99 percent of the national economy.
Taguig climbed one notch to eighth place, up from ninth in 2024, after recording an economic output of P686.68 billion, or 2.96 percent of GDP.
Pampanga ranked ninth at P627.89 billion, accounting for 2.7 percent of national GDP.
Davao City completed the top 10 with P601.68 billion, or 2.6 percent of the country’s economic output, replacing Baguio City from the previous year’s list.
Beyond the largest economies, economic expansion was recorded across most provinces and highly urbanized cities.
The PSA reported that 76 of the country’s 82 provinces and all 33 highly urbanized cities registered year-on-year economic growth in 2025.
Occidental Mindoro posted the strongest growth among local economies, expanding by 11.2 percent—the only double-digit growth recorded nationwide. The province accelerated sharply from its 2.1-percent growth in 2024.
Capiz followed with an 8.7-percent growth rate, while Maguindanao del Sur recorded 8.63 percent.
Antique posted 8.55 percent, followed by Davao del Norte at 8.3 percent, placing the two provinces among the country’s fastest-expanding local economies during the year.
The latest PSA figures also highlighted significant improvement in poverty conditions in Northern Samar, a province that has historically lagged behind many of the country’s stronger economies.
Northern Samar’s family poverty incidence fell to 12.5 percent in 2025, its lowest recorded level, moving the province out of the group of areas with poverty rates of at least 20 percent.
The decline represented a 9.3-percentage-point improvement from 21.8 percent in 2023 and a 6.8-percentage-point reduction from 19.3 percent in 2021.
The PSA said the decline from 2023 was statistically significant.
Within Eastern Visayas, Northern Samar recorded the fourth-lowest family poverty incidence among the region’s six provinces.
Southern Leyte posted the lowest rate at 3.4 percent, followed by Biliran at 7.8 percent and Leyte at 12.4 percent.
Northern Samar’s 12.5-percent rate was slightly below the regional figure of 12.8 percent. Samar registered 15.7 percent, while Eastern Samar posted the highest rate in the region at 20 percent.
The poverty reduction also resulted in a higher classification for Northern Samar under the PSA’s provincial poverty grouping.
The province moved from Group 4 to Group 5.
Group 5 covers provinces with family poverty incidence of at least 10 percent but below 20 percent. Northern Samar had previously been classified under Group 4, which covers poverty incidence of at least 20 percent but below 30 percent.
The improvement came despite a rise in the province’s annual per-capita poverty threshold, which reached P36,451 in 2025, compared with P33,472 in 2023.
The poverty threshold represents the estimated annual amount required to meet basic food and non-food needs.
For a family of five, the latest threshold translates to approximately P182,255 annually, or about P15,188 per month.
The provincial government said the figures provided a “strong foundation” for sustaining and expanding programs focused on livelihood and employment, community-based enterprises, access to basic services and targeted interventions in areas where poverty remains concentrated.
Northern Samar Rep. Edwin Ongchuan likewise welcomed the improvement, attributing the province’s progress to the combined efforts of farmers, fisherfolk, local governments, national government agencies and development partners.
The latest figures underscore a two-track picture of the Philippine economy: while Luzon continues to dominate the country’s largest economic centers, faster growth and measurable poverty reduction are also emerging in provinces outside the traditional economic core.
ia/xf
