The Davao Region maintained its status as Mindanao’s top-performing economy in 2025, registering a 5.1-percent growth rate and expanding its economy to P1.14 trillion, according to the Regional Development Council (RDC) 11.
Despite slowing from the 6.3-percent growth recorded in 2024, the region continued to outpace both the national growth rate of 4.4 percent and Mindanao’s average of 4.6 percent. The performance also secured Davao Region’s position as the country’s fourth fastest-growing regional economy and the fifth largest by gross regional domestic product (GRDP).
RDC 11 Co-chair Art M. Milan said the region’s economic expansion was largely fueled by the services sector, which accounted for 62.1 percent of total GRDP. Industry contributed 24.7 percent, while agriculture, forestry, and fisheries made up 13.2 percent.
Although the services sector remained the main growth driver, Milan underscored the importance of revitalizing agriculture to ensure more balanced and inclusive development.
“That’s why the promotion of coconut is very vital in trying to improve the performance of the agriculture sector. We need greater contributions from agriculture, forestry, and fisheries to create more balanced and equitable growth in the Davao Region,” he said.
Milan said wholesale and retail trade, along with the construction industry, were the largest contributors to the region’s services-driven growth.
“What contributed to the services sector is really wholesale and retail trade, as well as construction. If you look around, construction remains robust in the Davao Region. It is also strong across Mindanao. Major cities experiencing robust construction activities include General Santos, Davao, Cagayan de Oro, and Zamboanga,” he said.
He also identified manufacturing, particularly electricity, water and waste management, as well as logistics, as key drivers of economic expansion.
“Another driver of growth is manufacturing, especially electricity, water and waste management, and logistics. Mindanao, particularly Davao, is emerging as the logistics hub of Mindanao,” Milan said.
Milan noted that the region’s P1.14-trillion economy remains ahead of Northern Mindanao’s P1.09-trillion economy, highlighting Davao Region’s growing role as one of the country’s major economic centers.
While recognizing the region’s strong economic gains, he emphasized that greater investments in coconut production, agriculture, forestry, and fisheries will be crucial in sustaining long-term growth and ensuring that economic gains are more broadly shared across communities.
