The Philippine Statistics Authority (PSA) reported that the Davao Region continues to hold the largest economy in Mindanao.

From 18 regions across the country, Davao ranked fifth in 2025 despite the challenges the region faced from calamities.

Based on Gross Regional Domestic Product (GRDP) and expenditure, Davao region’s economy went up by 5.1 percent, reaching P1.14 trillion in 2025.

This marks the third consecutive year that Davao has achieved a trillion-peso economy.

While the growth rate was lower than the 6.3 percent recorded in 2024, the 2025 growth rate still surpassed the national average of 4.4 percent.

Data also showed that Davao ranked fourth among the fastest-growing economies and accounted for 4.9 percent share of the national GDP.

Agriculture, forestry, and fisheries recovered with 1.9 percent growth from a negative 0.4 percent record in 2024.

“Looking at the performance of industries, the top 3 major contributors to the 5.1 percent growth of the region were wholesale and retail trade, repair of motor vehicles and motorcycles with 1.5 percentage points, financial and insurance activities with 0.6 percentage points, public administration and defense, compulsory social security with 0.44 percentage points,” Baby Jean Alid, officer-in-charge of the Regional Statistical Services Office-11, said.

For its part, the Department of Economy, Planning and Development-Davao (DEPDev-11) said the region was able to meet its annual targets under the Davao Regional Development Plan  despite the challenges brought by the doublet earthquake, storms, and government issues such as the flood control scandal.

“Davao region not only registered the fastest growth but also remained the largest regional economy in Mindanao,” DEPDev-11 Director, Priscilla Sonido, said.

However, the ongoing conflict in the Middle East could affect the economy negatively in 2026, particularly through the rising inflation driven by high fuel prices.