NSCB - NSCB Technical Notes on the Estimates of the Philippine System of National Accounts (PSNA) Series 2005-Q2

NSCB Technical Notes on the Estimates of
the Philippine System of National Accounts (PSNA) Series 2005-Q2
(posted 11 November 2005)

Technical notes on the PSNA are regularly published in the NSCB website for a better appreciation of our national accounts. Reference should also be made to the earlier technical notes for the current national accounting practices adopted in the Philippines.

Merchandise Import

Estimates of merchandise imports in the national accounts for 2002-2004 do not yet reflect the NSO revised import figures released last August 2005. In line with the PSNA Revision Policy (NSCB Resolution No. 8-97) the above revisions in import will be incorporated in the accounts in May 2006.

Real Estate & Ownership of Dwellings

Real estate covers the following:

renting, management and operation of residential and non-residential buildings;
subdivision and development of land into building lots;
operation of residential and industrial estates;
cemetery development and sale and;
activities of real estates agents, brokers and managers engaged in renting, buying, selling, managing and appraising real estate on a fee or contract basis.

For the quarterly estimates, the sources of data are the NSO Quarterly Survey of Philippine Business and Industry (QSPBI), and financial statements of real estate companies to supplement the QSPBI results.

Ownership of dwellings pertains to the provision of housing services on own account. These are the owner-occupied dwelling units and imputed rent is estimated for national accounts purposes. “ Heads of household who own the dwellings which the household occupy are formally treated as owners of unincorporated enterprises that produce housing services consumed by those same households.”

The benchmark estimates for the number of owner-occupied dwelling units and the average rent are derived from the Census Population and Housing and the Family Income and Expenditure Survey, respectively. For the quarterly estimates, the stock of owner-occupied dwelling units is updated using the data from the Building Permits and the data on damaged houses from the National Disaster Coordinating Council (NDCC). The average rent is updated using the rental index from the Consumer Price Index (CPI). The gross value added (GVA) is the difference between the imputed rent and intermediate inputs, which are basically the cost of repairs and maintenance of dwelling units.

On the expenditure side of the accounts, the corresponding imputed cost of housing services is reflected as part of household operations under the Personal Consumption Expenditure (PCE).

Revisions as of August 2005

Based on the Revision Policy approved by the NSCB Executive Board and consistent with the international practice on the revision of National Accounts, the following are the corrections and revisions in our previous estimates, based on the revisions and updates made by the data sources themselves, including those made by NSO on Exports, Imports, MISSI, QSPBI, Building Permits, WPI, and FTS; BSP on the BOP; the DOE and MGB for Mining and Quarrying; the NPC for EGW; additional Financial Statements from source companies for ODRE; PSP Program from BOT Center, DBM and DOF for Construction; COA, DBM for Government Consumption; as well as POEA for NFIA.

For the first quarter, the following revisions were made:
On the production side,

AFF upward from –0.2% to –0.1%
Mining and quarrying upward from –4.4% to –3.8%
Manufacturing upward from 4.2% to 4.9%
TCS upward from 9.6% to 10.7%
Finance upward from 11.1% to 12.3%
EGW downward from 5.6% to 2.1%
Trade downward from 6.0% to 5.7%
ODRE downward from 6.8% to 6.6%
Construction downward from 7.9% to 5.9%.
On the expenditure side,
Government Consumption upward from –0.9% to 0.6%.
Breeding Stocks upward from -0.4% to 0.3%
Exports upward from 3.1% to 3.4%
Imports upward from –4.0% to –3.5%.
NFIA upward from 6.7% to 7.6%
Construction downward from 5.6% to 3.3%
Durable Equipment downward from –7.5% to -9.7%.

As a result of all the revisions for the first quarter, GDP growth for Q1 2005 remained at 4.6% while GNP growth was revised upward from 4.7% to 4.8%

A more complete tabulation of our revisions is included in our publication (as of August 2005).

For inquiries please contact Dir. Raymundo J. Talento at (632) 895-2481 or
e-mail him at rj.talento@nscb.gov.ph.

References:

Issues Paper Balance of Payments Technical Expert Group (BOPTEG) #8 Residence of Households by Robert Dippelsman, IMF Statistical Department, May 2004 (http://unstats.un.org).

Issues Paper Balance of Payments Technical Expert Group (BOPTEG) #8A Residence of Households by International & Financial Accounts Branch, Australian Bureau of Statistics, May 2004 (http://unstats.un.org).

System of National Accounts 1993, by Eurostat, IMF, OECD, U.N., WB, 1993.

Technical Notes on the 2003-2004 BOP Revisions by Bangko Sentral ng Pilipinas, April 2005 (http://www.bsp.gov.ph)