BAGUIO CITY (PIA) — The economies of Baguio City and Benguet province expanded in 2025, with Baguio posting the fastest growth among all sub-regional economies in the Cordillera Administrative Region (CAR).
The Philippine Statistics Authority (PSA) reported during the Provincial Product Accounts (PPA) 2025 dissemination forum on Sept. 29 that Baguio City’s gross domestic product (GDP) grew by 5.6 percent to P188.89 billion at constant 2018 prices, adding P9.97 billion to the P178.92 billion output recorded in 2024.
Benguet, meanwhile, posted a 3.3-percent growth, with its GDP rising from P86.93 billion in 2024 to P89.80 billion in 2025.
Both local economies contributed significantly to CAR’s overall 4.4-percent growth in 2025, with Baguio adding 2.6 percentage points and Benguet contributing 0.8 percentage point to the regional expansion.
Services, industry drive Baguio growth
Services remained the largest major industry in Baguio, growing by 5.1% from P114.78 billion in 2024 to P133.94 billion and contributing 1.7 percentage points to the city’s GDP growth.
The industry sector expanded by 6.8% to P47.07 billion from P44.06 billion, contributing 3.8 percentage points, while agriculture, forestry and fishing (AFF) posted the fastest growth rate at 13.0%, reaching P1.04 billion from P980.87 million.
Aldrin Federico Bahit Jr., chief statistical specialist of PSA-CAR’s Statistical Operations and Coordination Division, clarified that Baguio’s AFF sector mainly consists of support activities to agriculture and forestry such as seed processing, post-harvest services, rental of farm machinery, forest management consulting, and lodging services related to these activities.
Manufacturing continued to dominate Baguio’s economy with a 19.6% share, accounting for more than 75% of the region’s total manufacturing output. Wholesale and retail trade, including repair of motor vehicles and motorcycles, followed with a 16.0% share, while financial and insurance activities contributed 14.1%.
In terms of growth rates, construction led all industries with a 16.8% expansion, followed by AFF at 13.0% and human health and social work services at 12.7%. However, manufacturing remained the top contributor to overall GDP growth, adding 1.0 percentage point while wholesale and retail trade and construction contributed 0.74 and 0.70 percentage points, respectively.
Benguet led by services, education, finance
In Benguet, services sector was the largest contributor to the province’s 3.3% GDP growth, adding 3.4 percentage points. AFF contributed 0.2 percentage points, while industry pulled down growth by 0.3 percentage points.
Services expanded by 5.4%, AFF grew by 1.2%, and industry contracted by 1.6% in 2025.
Among the 16 production industries, human health and social work activities posted the fastest growth at 14.4%, followed by education at 11.1% and professional and business services at 7.6%.
Quarrying and construction, both under the industry sector, contracted by 2.7% and 4.4%, respectively.
In terms of contribution to GDP growth, education added 0.63 percentage points, financial and insurance activities contributed 0.62 percentage points, and wholesale and retail trade, including repair of motor vehicles and motorcycles, added 0.58 percentage points.
Wholesale and retail trade accounted for the largest share in Benguet’s GDP at 16.2%, followed by AFF at 15.2% and financial and insurance activities at 13.4%. These three industries collectively contributed 44.8% of the province’s economy.
Per capita GDP: Baguio highest in CAR
Baguio’s per capita GDP, which measures the average economic contribution per person, was estimated at P478,956 in 2025 at constant 2018 prices, 4.0% higher than the P460,361 recorded in 2024.
This placed Baguio’s per capita GDP at 10th highest among highly urbanized cities in the Philippines and the highest among all economies in the Cordillera region.
Benguet’s per capita GDP was estimated at P181,886 in 2025, 1.9% higher than the P178,506 recorded in 2024.
Baguio outpaces other CAR provinces
All sub-regional economies in CAR posted growth in 2025 except Abra, which recorded a 0.8% contraction. Among those that grew, Baguio registered the fastest expansion at 5.6%, followed by Ifugao at 5.4%, Kalinga at 4.9%, and Mountain Province at 4.6%.
Benguet ranked fifth with a GDP growth of 3.3%
In terms of industry performance, Baguio posted the fastest industry growth at 6.8% while Benguet recorded a 1.6% contraction. Baguio significantly contributed to the region’s industry growth, driving it by 3.4 percentage points, whereas Benguet slowed down industry growth by 0.32 percentage points.
For services, Apayao recorded the fastest growth at 7.1%, followed by Ifugao at 6.2% and Benguet at 5.4%. Baguio’s services grew by 5.1%, fourth among all sub-regional economies, but still spurred regional services growth by 2.6 percentage points.
PPA supports evidence-based planning
The Provincial Product Accounts is a mechanism to compile GDP using the production approach at the sub-regional level, consistent with the national and regional accounts and the System of National Accounts framework.
Through the PPA, the GDP figures of provinces and highly urbanized cities are compiled for use by economic planners, policymakers, and other stakeholders in assessing local economic performance, policy formulation, monitoring, and impact analysis for evidence-based decision-making.
The PSA-CAR dissemination forum was attended by representatives from the Office of the Governor of Benguet, members of the Sangguniang Panlalawigan, city and provincial planning and budget offices, the Department of Economy, Planning and Development-CAR, and various local government units and stakeholders. **JDP/MAWC-PIA-CAR
