NSCB - 2nd Quarter 2003 GNP - The Seasonally Adjusted National Accounts of the Philippines

The resilient services sector helped the Philippine economy arrest the decline manifested last quarter as the Seasonally Adjusted Gross Domestic Product (SAGDP) grew by 0.1 percent while the Seasonally Adjusted Gross National Product (SAGNP) increased by 1.0 percent during the second quarter of 2003. Both SAGDP and SAGNP recovered from negative growths of 0.5 percent and 2.5 percent, respectively, in the previous quarter. Despite the US-Iraq war, the SARS epidemic and the peace and order in Mindanao, the economy managed to regain some momentum albeit precariously. The stable resiliency of the services sector provided the buffer needed to offset the continuing decline of the agriculture, fishery and forestry and industry sectors.

PERSONAL CONSUMPTION EXPENDITURE

On the demand side, the Seasonally Adjusted Personal Consumption Expenditure (SAPCE) registered an accelerated growth of 1.3 percent, serving as the major stimulus to the domestic economy .

AGRICULTURE, FISHERY AND FORESTRY

The agriculture, fishery and forestry sector declined by 1.8 percent, its second contraction in a row. The AFF sector lost its bearing after a remarkable growth of 5.0 percent in the fourth quarter of 2002 as the latest El Nino episode took its toll on palay and corn production.

INDUSTRY

For the first time since the first quarter of 2001, the industry sector registered two consecutive quarters of negative growths. The good news is that it contracted by only 0.1 percent in the second quarter of 2003, which is an improvement from the negative 1.0 percent posted during the first quarter of 2003. Major contributor to the lackluster performance of industry is the continued decline in public construction.

SERVICES

The resilient services sector which has not experienced the ups and downs of the two other major sectors, continued to improve as it registered a growth of 1.0 percent from a lower growth of 0.4 percent posted during the first quarter of 2003.