Since there is no comprehensive data on the contribution of Laoag City to the national economy, this study makes use of the analysis made by the National Water Resources Council (NWRC) in 1979.  According to its findings, the Laoag River Basin where Laoag City is the vertex of commercial and trading activities, is the second largest contributor to the economy of Ilocos Region.

    The catchment area accounted 32.78% of the total regional          employment and 26.89% of Gross Regional Domestic Product.

    1. Gross Domestic Product and Employment

    In accordance with regional and national development strategies, the Ilocos region is targeted to become one of the country's future corridors. The expected shift in the regional economis structure will eventually affect the City of Laoag, considering its accessibility to the Ilocandia communities. Proposed development per se, consists in the reduction of the share of agriculture to employment, and targeted GRDP of 21.79% and 23.38% respectively.

    2. Sectora Highlights

2.1 Agricultural, Forestry and Fishery

    Agriculture occupies the biggest land allocation in Laoag City covering an area of 9,949.29 hectares or 78.05%. Some of the crops raised are rice, mongo, corn, vegetables, sugar cane, watermelon, peanuts, tobacco, rootcrops and most importantly garlic and onions.

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date source:NCSO Reports,1991

    Laoag City has a total of 262 hectares of forest area. These are situated in the Northern and Eastern part of Laoag City. Of all the forest zones in the city, Bacsil forest is the most famous lying along the mountains' easten sector.
   
    Laoag City has no commercial fishing ground. However barangays La Paz and Caaoacan are considered exceptionally good fishings areas. Inland fisheries are scattered in the barangays of Apaya, Araniw and Cavit, Gabu Sur, Calayab and Caaoacan.

2.2 Commerce

    Laoag City, being the provincial capital, is considered the busiest commercial district of Ilocos Norte. Commercial activities include operations of supermarket, department stores, groceries, lumber and hardware, drugstores, movie houses, restaurants, snackbars, pawnshops, banking and lending institutions, farm supplies and bakeries, among others.
   
    Thirty three (33) banks operate in the city, accepting savings/time deposits, foreign exchange transactions, and engaging in lending loan and commercial purposes.
   
    Laoag City has a good commercial relationship with its neighboring communities. Farmers in the nearby municipalities prefer to sell their farm produce in the market rather than through middleman or trader. The buying psychology of the people on the hand, is somewhat bias, since they believe that goods and services in Laoag City is cheaper in their respective communities.