The Davao Region sustained stable and resilient economic performance in 2025, supported by easing inflation, strong employment, and gains across agriculture, industry, and services, the Department of Economy, Planning and Development (DEPDev)–Davao Region said.
In its Annual Regional Economic Situationer (Ares), the agency cited significantly lower inflation as a key development, reflecting a generally stable price environment alongside steady economic activity.
“Davao Region's headline inflation rate decelerated in 2025, recording a full-year average of 0.7 percent,” the report said. “This represents a decline of 3.3 percentage points from the 4.0 percent annual average recorded in 2024.”
The slowdown placed inflation well below the government’s 2.0 to 4.0 percent target. While this points to stable prices for basic goods and services, it also suggests softer demand in some sectors.
Compared with the national average of 1.7 percent, the region posted consistently lower inflation throughout the year, indicating weaker price pressures. Monthly inflation stayed below the target range for most months and dipped into deflation midyear, reaching -0.4 percent in July and -0.1 percent in August. Inflation picked up in the fourth quarter and peaked at 2.2 percent in December, signaling gradual normalization.
Despite low inflation, the labor market remained strong. Employment reached 96.7 percent as of October 2025, reflecting sustained job opportunities and continued recovery. Investment inflows also held firm, with ₱8.1 billion in foreign direct investments, signaling investor confidence.
Agriculture drove growth, with gains across major commodities. Palay output rose 3 percent, while chicken production jumped 23 percent. High-value crops and fisheries also expanded, with cacao up 4 percent and commercial fisheries surging 58 percent, underscoring the sector’s role in food security and rural livelihoods.
Industry and services continued to support expansion, driven by higher mobility, business activity, and consumer demand. Government programs assisted 34,676 micro, small, and medium enterprises. Tourism rebounded, with 4.27 million arrivals boosting jobs and local revenues.
On social development, the report noted progress alongside ongoing challenges. The child stunting rate stood at 5.08 percent, while the infant mortality rate reached 10.71 percent, indicating areas that need sustained intervention.
In education, 54.18 percent of learners achieved elementary proficiency, and 575 Technical and Vocational Education and Training (Tvet) trainers were certified to strengthen workforce skills.
Social protection programs expanded, with 314,989 households receiving cash grants to support vulnerable groups.
Peace and order remained stable. Authorities recorded 29,322 crime incidents and a 96.47 percent crime solution efficiency rate, reflecting effective law enforcement.
Infrastructure development advanced, particularly in logistics and energy. The region handled 17.28 million kilograms of air cargo and 5.48 million metric tons of sea cargo, highlighting strong trade activity. Electrification reached between 87.45 percent and 99.70 percent, showing continued progress in energy access.
Overall, the region’s 2025 performance reflects a balance of stability and growth. Despite unusually low inflation, strong employment, sectoral gains, and sustained investments, Davao’s economic resilience is underscored. DEF
