The Philippine Statistics Authority (PSA)-CALABARZON reported last November 14, 2024, that Laguna accounted for the largest share of Gross Domestic Product among the country’s 82 provinces. With 3.9 percent growth, rising from PHP990.44 billion in 2022 to PHP1.029 trillion, Laguna was acknowledged as the top provincial contributor to the country’s GDP in 2023.
According to the report by Laguna Provincial Statistical Office chief statistical specialist, Magdalena Serqueña during the Provincial Product Accounts Dissemination Forum, the sectors contributing to Laguna’s economic growth are the following:
1. Industry Sector
Laguna has become home to numerous manufacturing businesses, especially due to the presence of large industrial zones and economic zones like Calamba Premiere International Park. The industrial parks draw in both domestic and foreign investors, significantly impacting the province’s GDP. Prominent multinational corporations, particularly in the electronics field (e.g., Samsung) and in automotive production (e.g., Toyota), have set up operations in Laguna.
According to the report by Serqueña, the industry sector showed 60 percent growth from its 2022 level. 15 out of 16 among Laguna’s production industries contributed to the economy’s growth. Through creation of job opportunities, exports, and technological innovation, the economic growth is driven by the industrial sector.
2. Retail and Commercial Sector
With 0.89 percentage points contributed to Laguna’s 3.9 percent growth rate, The retail sector in Laguna is experiencing significant growth, driven by the expanding middle class and its close proximity to Metro Manila. Shopping centers, such as SM Calamba, have contributed positively to retail consumption. This increase in retail establishments is closely associated with the rising demand for goods and services from the growing urban population. The retail sector plays a crucial role in stimulating local consumption, generating employment opportunities, and fostering growth in commercial real estate.
3. Real Estate and Property Development
Real estate and ownership of dwellings contribute to Laguna’s economic growth with 0.47 points through boosting construction, retail, and service sectors, and attracting long-term investments.
Laguna’s strategic location near Metro Manila has established it as an ideal location for real estate development. The growth of Nuvali, a sustainable mixed-use development in Sta. Rosa, along with other residential communities, has propelled both real estate investment and infrastructure growth. Additionally, business process outsourcing (BPO) centers are emerging in locations such as Biñan and Calamba.
4. Service Sector
The service sector recorded a 38.5 percent growth from the 2022 Laguna economic structure. Included in this sector are tourism and hospitality, educational institutions, and the Business Process Outsourcing (BPO) sector.
With Laguna’s proximity to Metro Manila, its appeal as a destination for both local and international tourists is enhanced. Notable attractions such as Enchanted Kingdom in Santa Rosa and Pagsanjan Falls draw significant interest, while the province is also renowned for its hot springs, particularly in Pagsanjan and Lucban. Furthermore, lifestyle malls like Nuvali and Solenad have emerged as prominent commercial destinations.
Also, Laguna is home to esteemed universities and institutions such as the University of the Philippines Los Baños (UPLB), Polytechnic University of the Philippines, and Colegio de San Juan de Letran. The BPO industry is experiencing growth, particularly in cities like Santa Rosa, where numerous call centers and IT firms have established operations due to the availability of skilled labor and proximity to Metro Manila.
5. Agriculture, Forestry, and Fishing (AFF)
With its fertile land utilized for the cultivation of rice, vegetables, fruits, and various other crops, Agriculture remains a crucial component of Laguna’s economy with 1.5 percent growth from its 2022 level. Laguna’s agri-business sector is also experiencing growth, supported by increasing investments in food processing. Additionally, the province boasts a robust aquaculture industry in Laguna de Bay, which facilitates fish farming and related enterprises.
In conclusion, Laguna has established itself as a leading contributor to the Philippine economy, representing the largest share of Gross Domestic Product among the country’s provinces. With an impressive GDP growth of 3.9 percent, fueled by key sectors such as manufacturing, retail, real estate, services, and agriculture, the province exemplifies a diverse and dynamic economic landscape.
With these multifaceted growth drivers, a balanced economic ecosystem is created in the province of Laguna. The economic performance of Laguna in 2023 highlights its integral role in the national economy and underscores its potential for sustained growth in the years ahead. The province’s strategic advantages—including industrial hubs, robust infrastructure, a skilled labor force, and abundant natural resources—position it as a significant contributor to the country’s economic development.
