The Davao Region’s economy grew 5.1% in 2025, surpassing the Philippines’ national economic growth rate of 4.4%, according to officials during the Philippine Economic Briefing in Davao City.
The growth made Davao the largest regional economy in Mindanao, with a 2025 gross regional domestic product of P1.14 trillion. It was also identified as the fifth-largest economy in the Philippines and the fourth-fastest-growing economy nationwide.
Bangko Sentral ng Pilipinas Deputy Governor Zeno Ronald R. Abenoja said the region’s performance was supported by its agricultural, industrial and services sectors. Construction and financial services also contributed to the region’s economic activity.
Abenoja said future industries require foundations that include macroeconomic stability, a sound financial system, technological innovation and strong public-private partnerships.
The Philippine Economic Briefing, held Aug. 24 in Davao City under the theme “Make Future Industries Happen,” brought together stakeholders to discuss the economic outlook, investment opportunities and the development of future industries in Mindanao.
Finance Secretary Frederick D. Go said the economic performance came amid national government reforms aimed at strengthening the Philippines’ competitiveness and attracting private investment.
Among the reforms cited were the CREATE MORE Act, the new PPP Code, longer land leases, green lanes for strategic investments, right-of-way reforms and capital-market reforms.
Go also said the Philippines had entered upper-middle-income status after four decades in the lower-middle-income category. Combined approved investments from investment promotion agencies and the Board of Investments reached more than P1.9 trillion in 2024 and 2025.
Mindanao Development Authority Chairperson and Secretary Leo Tereso Magno said the region’s performance presents opportunities to strengthen existing industries and move toward higher-value sectors, including agribusiness, manufacturing, logistics, digital services and renewable energy.
