Driven by the steady performance of trade and manufacturing and aided by the resurgence of transportation, communication and storage and private services, the domestic economy sustained its gain from the previous quarter as seasonally adjusted estimate of the Gross Domestic Product posted a steady 0.8 percent growth in the fourth quarter of 2006. The vibrant growth of the Net Factor Income from Abroad, which is the second highest during the last eleven quarters, boosted the stable GDP growth as the seasonally adjusted Gross National Product zoomed to a 4.4 percent growth, from a contraction of 0.6 percent in the previous quarter. The growth of the SAGNP was the highest during the last twelve years.

Original Data vs.
Seasonally Adjusted Gross Domestic Product

PERSONAL CONSUMPTION EXPENDITURE

On the demand side, seasonally adjusted personal consumption expenditure expanded by 1.6 percent in the fourth quarter of 2006, outpacing the previous quarter growth of 1.1 percent. Vibrant inflow of compensation from our OFWs continued to propel household consumption.

AGRICULTURE, FISHERY AND FORESTRY

The agriculture, fishery and forestry sector continued to plunge as it registered its worst performance since the second quarter of 2004, contracting by 1.6 percent in the current quarter. The improved growth of corn and sugarcane failed to curb the decline in palay and livestock and the slowdown of other agricultural products. AFF has contracted in three of the last four quarters.

INDUSTRY

The revised growth of 0.2 percent of industry in the third quarter was sustained through the fourth quarter of 2006, but still a far cry from the second quarter growth of 2.7 percent. The record growth of electricity and water and the turn around in construction kept industry barely in positive territory amidst the underperforming mining and quarrying sector.

SERVICES

The services sector continued its steady rise as it registered a hefty growth of 2.2 percent in the fourth quarter of 2006, from 0.7 percent and 1.6 percent during the 1st and 2nd quarters, respectively. The biggest contributors to the acceleration of the sector are trade, transportation, communication and storage and private services.