Home BusinessHealth services lead growth in City of Davao economy in 2025

Health services lead growth in City of Davao economy in 2025

by Nova Mae Francas

DAVAO City’s economy grew by 4.8 % in 2025, slower than the 7.9 % growth recorded in 2024, but human health and social work activities posted the fastest growth.

Michelle Maningo, Philippine Statistics Authority XI OIC Statistical Operations and Coordination Division, reported the Provincial Products Accounts in a dissemination forum on Thursday, October 15.

Among the industries, human health and social work activities posted the fastest growth at 10.3%. Transportation and storage followed with 8.0%, then public administration and defense and compulsory social security with 7.7%.

Private health providers account for the largest share of the human health and social work sector.

The industry covers three groups: public human health activities, private human health activities, and social work activities.

The public segment includes government hospitals, rural health units, and the Department of Health, while Social work activities include programs of the Department of Social Welfare and Development, and residential care facilities.

Meanwhile, private human health activities cover private general hospitals, sanitaria and similar facilities, mental health and substance abuse hospitals, and other private hospitals, private medical, dental, and laboratory services.

While human health and social work services posted the highest rate, agriculture, forestry and fishing was the only sector to decline, contracting by 0.9%.

Maningo explained that the availability of data for 2025 was limited to family income and expenditure, as PSA has just started the disaggregation of Davao City data from Davao del Sur in the second quarter of 2025.

The official reported this has contributed to the slower growth rate of the city, along with construction from 19% in 2024 down to 5% in 2025; electricity, steam, water and waste management from 9.9% in 2024 to 0.6% in 2025; and accommodation and food service activities from 10.4% in 2024 to 3.8% in 2025.

By major sector, services accounted for 70.9% of the city’s economy, or P426.66 billion. Industry made up 25.2%, or P151.60 billion, while agriculture, forestry, and fishing contributed 3.9 %, or P23.42 billion.

Maningo reported the city’s gross domestic product (GDP) was estimated at P601.68 billion in 2025, measured at constant 2018 prices, up from P574.34 billion in 2024 and P532.52 billion in 2023.

The city’s per capita GDP was estimated at P315,603 in 2025, up 3.3% from the previous year.

The City of Davao was the only highly urbanized city in the Davao Region with a per capita GDP higher than the regional figure of P206,727.

In terms of contributors to GDP growth, wholesale and retail trade was the biggest driver at 1.3% age points; followed by financial and insurance activities at 0.64% age point; and construction at 0.63% age point.

The other areas trailed the regional figure: Davao del Norte at P171,695; Davao del Sur at P168,622; Davao Occidental at P135,150; Davao de Oro at P132,279; and Davao Oriental at P109,240.

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