NSCB - Third Quarter 2005 GNP

Third Quarter 2005
Gross National Product &
Gross Domestic Product by Industrial Origin

Services

Services, with a share of 48.1 percent of total GDP, continued to spearhead the economy, contributing 2.4 percentage points. All sub-sectors of Services, however, reported lower growths in the third quarter of 2005 except Finance which accelerated to a double-digit growth of 15.6 percent.

Transportation, Communication and Storage

Transportation, Communication and Storage registered a marked reduction in growth from 11.4 percent in the previous year to 5.2 in the third quarter of 2005

Communications, which posted a decelerated growth of 9.7 percent during the quarter from the double-digit growth of 16.9 percent in the same period last year, continued to propel the industry’s growth. Mobile and landline telephone service providers continued to post gains in their subscriber’s base stock but at a slower pace during the period.

Land Transport plummeted to negative 3.9 percent from 5.2 percent a year ago, as the sub-sector was directly hit by the unabated oil price hike and the increase in transport fare beginning the second quarter. Water Transport slid to negative 5.0 percent from a high growth of 14.3 percent, due to the decline in the volume of passengers, shipcalls and cargo throughput at the waterfronts. On the other hand, Air Transport slid down to 1.3 percent from a robust growth of 23.8 percent in the previous year, weighed down by the decline in the number of domestic flights and domestic passengers.

Meanwhile, SSIT surged to 24.5 percent from 2.6 percent due to the significant rise in revenue from the North Luzon Express tollway operation during the period.

Trade

Trade Services slowed down its momentum to 4.9 percent in the third quarter of 2005 from 7.8 percent in the previous year. Retail Trade, which accounted for about 75 percent of total Trade, grew by 5.4 percent from 6.8 percent in 2004. Meanwhile, Wholesale Trade reported a moderate growth of 3.3 percent from a substantial growth of 10.7 percent in the previous year, largely due to higher sales of pharmaceutical products, petroleum products and supermarkets.

Finance

Financial Services fortified its growth to 15.6 percent in the third quarter of 2005 from 9.0 percent in 2004. The robust performance of the sector was mainly driven by Banks, which reflected a stronger position with 22.0 percent from 8.9 percent in the previous year, boosted by the continued upsurge in both interest and non-interest income. Non-banks, on the other hand, inched up slightly to 14.7 percent from 14.2 percent in 2004. Meanwhile, Insurance went down by 5.4 percent from 6.8 percent in 2004.

Ownership of Dwellings and Real Estate (ODRE)

Ownership of Dwellings and Real Estate (ODRE) continued to grow by 4.2 percent in the third quarter of 2005 from the 6.9 percent in the previous year. Growth during the period was attributed to higher demand for office spaces which continued to push up real estate at 9.2 percent from 24.7 percent in the previous year. On the other hand, Ownership of Dwellings, which accounts for about 78.2 percent of ODRE, posted a slightly lower growth of 2.9 percent from 3.0 percent in the same period last year.

Private Services

Private Services slowed down significantly to 3.1 percent in the third quarter of 2005, from 6.8 percent in 2004, as six out of the seven subsectors recorded lower growths during the period. Business services, Recreational services and Hotels and restaurants posted the biggest reduction in growth during the period.

Medical and Health services provided the biggest contribution to growth as it continued to grow by 5.3 percent from 7.6 percent last year. This was followed by Personal Services, which also slowed down to 3.8 percent from 5.0 percent. Business services, (which include business process outsourcing, call centers, labor recruitment services, advertising services, among others), decelerated to 3.0 percent from 10.6 percent last year. Educational Services grew by 3.6 percent relative to 5.6 percent. Other subsectors that reported slower growths during the quarter were Recreational Services and Hotels and Restaurants.

Meanwhile, Other Private Services climbed to 7.2 percent from a meager growth of 0.8 percent in 2004.

Government Services

As the government continued to keep a tight rein on its budget, government services declined by 1.1 percent during the quarter from a growth of 3.0 percent in 2004.

GROSS VALUE ADDED in SERVICES
3rd Quarter 2005 and 3rd Quarter 2004
AT CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2005	3rd Qtr 2004	Growth Rate (%)
TOTAL SERVICE	139,993	133,180	5.1
a. Transportation, Communication & Storage	24,314	23,110	5.2
b. Trade	50,472	48,111	4.9
c. Finance	15,894	13,754	15.6
d. Ownership of Dwellings & Real Estate	14,252	13,678	4.2
e. Private Services	22,537	21,863	3.1
f. Government Services	12,524	12,664	-1.1

Source: National Statistical Coordination Board (NSCB)

Posted 29 November 2005.