The resurgence of the agriculture, fishery and forestry sector helped the Philippine economy sustain the gains made during the second quarter of 2003 as the Seasonally Adjusted Gross Domestic Product (SAGDP) posted a quarter-to-quarter growth of 1.7 percent while the Seasonally Adjusted Gross National Product (SAGNP) grew by 1.2 percent in the third quarter of 2003. The big turn around of agriculture, fishery and forestry, the continuing resiliency of the services sector and the sustained growth of industry, particularly manufacturing, all contributed to overcome the perils to the economy of the political instability and national security threats brought about by the failed Oakwood mutiny. Revised 2nd quarter estimates now show greater overall stability in the economy than earlier reported.

PERSONAL CONSUMPTION EXPENDITURE

On the demand side, the Seasonally Adjusted Personal Consumption Expenditure (SAPCE) slowed down to 1.0 percent. Nonetheless, it remained the one big factor in spurring the domestic economy, thanks to the P 111 billion in earnings of our OFW's during the third quarter.

AGRICULTURE, FISHERY AND FORESTRY

The agriculture, fishery and forestry sector expanded by 4.4 percent, a huge turn around from two consecutive quarters of contraction in 2003. The surge in the AFF sector came from improved performances of palay, fishery and forestry.

INDUSTRY

After a revised growth of 1.3 percent in the second quarter, the industry sector slowed down to 0.6 percent in the current quarter. All subsectors contributed to the deceleration, with construction, particularly public construction, remaining in the doldrums .

SERVICES

The resilient services sector continued to grow famously, albeit at a slower pace of 1.4 percent from the 1.6 percent growth recorded during the second quarter. The sector has registered positive quarter-to-quarter growth since 1993. All subsectors contributed to the sustained momentum, with government services back on track after losing some steam during the first two quarters.