From 5.6% in 2024, Catanduanes’ economy slumped to a new low in 2025 with its Gross Domestic Product (GDP) growing just 0.3%, below the regional average of 0.5%.
While the size of the island’s economy inched up to 32.77 billion from 32.68 billion in 2024, the slight increase is attributed to the 5.5% growth in the Services sector.
In contrast, Industry contracted by 2.1% while Agriculture, Forestry and Fishing (AFF) declined by 18.2%, Chief Statistical Specialist Anavi F. Camacho of the Philippine Statistics Authority (PSA) reported during the Provincial Product Accounts (PPA) Dissemination Forum held Oct. 6, 2026 at ARDCI Hotel.
Healthy growth rates were noted in Human health and social work activities (10.5%), Public Administration (9.5%) and Education (7.8%) as well as other industries but the growth rate was held down by the negative 3.7% in construction and AFF’s huge 18.2% drop.
According to statistics of the Philippine Fiber Industry Authority (PhilFIDA), abaca production in 2025 came up to just 7,497.625 metric tons, indicating a nearly 28% drop compared to the 10,377.688 MT harvested in 2024.
In terms of economic structure, construction accounted for 32.3%, followed by wholesale and retail trade (10.8%) and manufacturing (10.5%).
As a result of the slowdown, the per capital GDP of the province slipped by 0.4% to P116,723, compared to the P117,233 in 2024.
However, it remains the highest per capita GDP in the Bicol region, followed by Albay’s P115,124 and Camarines Norte’s P99,132.
The other provinces’ per capital GDP in 2025 were: Camarines Sur, P96,468; Sorsogon, P96,307; and Masbate, P95,608.
Masbate led the six provinces in GDP growth rate with 3.9%, thanks to an 11% growth in agriculture and fishing and 4.9% increase in its services sector.
Aside from Catanduanes, the other provinces with positive GDP growth in 2025 were Camarines Norte (1.8%) and Albay (1.1%) while Camarines Sur and Sorsogon’s economies declined by 1% and 1.2%, respectively.
In the AFF sector, Catanduanes showed the largest decrease followed by Camarines Norte’s 11.6% and Albay’s 5%.
In the Industry sector, Masbate was the only one to exhibit growth by just 0.2% while the rest performed badly, with Sorsogon at the bottom with -10.7%, Camarines Sur with -8.7% and Albay with -6.9%.
All six Bicol provinces showed gains in the Services sector, led by Camarines Norte’s 8/0%, Sorsogon’s 7.3% and Albay’s 6.6%.
In its statement on the 2025 economic performance of the province, the Provincial Planning and Development Office remarked that based on its structure, the provincial economy remains heavily driven by the services and industry sectors while agriculture accounts for the smallest share.
The services sector is the primary contributor to the GDP growth at 48.1% led by wholesale and retail trade, education, and financial and insurance activities, PPDO chief Engr. Elsie B. Reyes stated, followed closely by the industry sector at 46.2% while AFF accounted for just 5.7%.
It attributed the substantial contraction in agriculture and fishing to adverse weather conditions, specifically super typhoon “Uwan” in November 2025 and the shearline while the province was still recovering from the devastation wrought by super typhoon “Pepito” and storm “Kristine” in 2024.
Aside from the heavy damage inflicted on abaca plantations of 15,000 farmers and their families, the situation was exacerbated by the low buying price of abaca fiber.
Reyes also averred that the industry sector was hampered by escalating construction costs as surges in material prices and fuel costs eroded profit margins and extreme weather events damaged or delayed projects and escalated maintenance expenses.
On the other hand, the slight deceleration in services was blamed on limited market size and regional demand, as Catanduanes has a smaller consumer base.
“High operational costs relative to revenue further exacerbate this trend, as small retail and repair establishments often grapple with lower efficiency and high overhead costs,” she said.
The PPDO head disclosed that to stimulate growth in agriculture and fishing, the administration envisions revitalizing the abaca industry through targeted value-chain interventions spanning production, processing, marketing and research.
“These initiatives are expected to yield positive results, most especially the Abaca-Based Community Advancement (ABACA) Program,” she added.
Reyes expressed optimism that the Catanduanes economy would rebound by 2026, driven by improving economic indicators, a favorable investment climate, and the current leadership’s development agenda.
However, she said that the AFF sector is seen to remain in negative territory due to the lingering effects of the severe 2025 weather disturbances.
“To stimulate recovery, the province must sustain its support for abaca farmers through plantation rehabilitation, disease eradication, and comprehensive financial and livelihood assistance for their families,” the top planning and development coordinator stressed.
“Similarly, rice and crop farmers require subsidized production inputs and crop insurance, while fisherfolks need targeted interventions to enhance their capacity,” she added. “In the interim, alternative livelihood programs are critical to support the vulnerable population reliant on this sector during the recovery phase.”
Achieving sustainable GDP growth requires the active engagement and collaboration of all stakeholders and development projects must be strictly demand-driven and feature precise beneficiary targeting to ensure maximum socio-economic impact,” Reyes concluded.
For its part, the Department of Development (DepDeV) regional office said the Catanduanes economy barely grew as its agriculture sector collapsed but the poverty incidence’s recovery to 24.1% showed resilience despite the climate risks.
“Health, education and government programs kept households afloat but farming and infrastructure vulnerabilities remain present,” it stated.
“The province must modernize agriculture with climate-smart practices, strengthen industrial activity through smoother project implementation, and expand tourism and digital services,” DepDev urged.
Governor Patrick Alain T. Azanza and Acting Vice Governor Fred Benedict T. Gianan sent representatives to the PPA dissemination forum where only one of the 11 municipal mayors – Virac’s Sinforoso Sarmiento, Jr. – was present.
The other participants were local planning and development officers, representatives of national agencies and department heads and personnel from the provincial government.