In 2023, Baguio City and Benguet province, the two leading economic hubs in the Cordillera Administrative Region, experienced significant growth, fueled predominantly by the services sector. Baguio’s economy expanded by 9 percent, reaching a GDP of PHP169.12 billion, up from PHP155.11 billion the previous year. This growth not only outpaced the pre-pandemic levels by PHP16.26 billion but also marked Baguio as the fastest-growing economy in the region. Despite a slight slowdown from the 11.4 percent growth in 2022, the city’s economic sectors showed robust performance, with accommodation and food services leading at a 34.3 percent increase, followed by other services at 29.8 percent, and transportation and storage at 16.4 percent. Baguio’s economy is heavily reliant on services, which accounted for 73.7 percent of its GDP.
Benguet, the second-largest economy in the region, saw a 5.1 percent growth in 2023, with its GDP rising from PHP78.78 billion to PHP82.79 billion. The services sector was the primary driver, contributing 63.2 percent to the province’s economy. Notable growth within this sector included other services at 46.3 percent, accommodation and food services at 25.9 percent, and transportation at 17.7 percent. Benguet’s economic performance underscores the significant role of the services sector in the region’s overall economic health.
The Philippine Statistics Authority highlighted that the resurgence of the tourism industry has been a key factor in boosting the economies of Baguio and Benguet. Baguio alone accounts for 46.8 percent of the Cordillera’s total economy, with Benguet contributing 22.9 percent. Other provinces in the region, such as Kalinga, Ifugao, Abra, Mountain Province, and Apayao, also contribute to the region’s economic landscape but to a lesser extent.