The economy regained the growth momentum that got derailed during the third quarter as the seasonally adjusted estimates of the Gross Domestic Product and Gross National Product accelerated to 2.7 percent and 3.0 percent, respectively, during the fourth quarter of 2005. All major sectors contributed positively to the growth of the economy despite the persistent increases in oil and consumer prices and the political turmoil that continued to hound business and government.

Original Data vs.
Seasonally Adjusted Gross Domestic Product

PERSONAL CONSUMPTION EXPENDITURE

On the demand side, the Seasonally Adjusted Personal Consumption Expenditure accelerated from 1.0 percent to 1.8 percent during the fourth quarter of 2005, helped by the double-digit growth in compensation of OFWs during the year and for each of the last three quarters.

AGRICULTURE, FISHERY AND FORESTRY

The Agriculture, Fishery and Forestry sector grew by 0.8 percent this quarter, much slower than the 3.5 percent of the previous quarter. Palay, banana, fishery and livestock production contributed to the growth of the sector.

INDUSTRY

After a contraction in the third quarter of 2005, the Industry sector made a significant turn around of 4.9 percent in the current quarter as manufacturing sustained its growth, mining and quarrying expanded mightily and the government channeled higher investments in public construction.

SERVICES

The seasonally adjusted Services sector grew faster at 1.9 percent during the fourth quarter of 2005 from 0.7 percent in the previous quarter. Finance continued to post double-digit growth while the other sub-sectors posted higher year-on-year growths during the fourth quarter compared to the third quarter.