NSCB - NSCB Technical Notes on the Estimates of the Philippine System of National Accounts (PSNA) Series 2006-Q4

NSCB Technical Notes on the Estimates of
the Philippine System of National Accounts (PSNA) Series 2006-Q4
(posted 23 April 2007)

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.

Electricity, Gas & Water –

Major economic activities included in the utilities sector are the generation, transmission and distribution of electricity, distribution of natural gas or pipeline gas and the collection, purification and distribution of water for final and intermediate use.

The generation of power from geothermal plant covers two activities -- generation of steam and the generation of electricity. Currently, these two activities cannot be separated in the PSNA due to data limitations hence, there is no separate estimate for steam. Similarly, the distribution of natural gas and generation of electricity from it is integrated and present data source does not provide information on these activities separately.

The operation of irrigation works in agriculture and the generation of electricity by other industries such as mining and quarrying are excluded in this sector. They are considered as secondary activities of the respective sectors that operate, produce and use them for their own account. The operation of irrigation works is presently included in agriculture services and the generation of electricity by mining and quarrying companies is included in their output as secondary product.

Mining and Quarrying –

This sector covers the extraction/production of metallic and non-metallic minerals from nature and its related process. Extraction of minerals from the earth, plus all supplemental activities relating to the beneficiating of ore and other crude materials for marketing are included. Extraction of crude oil and natural gas are included in the present PSNA.

Some mining establishments do operate their own schools, hospitals and other social activities. Since present data system does not classify these activities separately these activities are considered as part of the output of mining similar to the electricity generated by mining establishments.

Preparation of mining site on a contract basis is classified under the construction sector. Mining and quarrying activities done by households for this own consumption or for the market is included in the output of the sector.

Expenditures on mineral exploration are not treated as intermediate consumption. Whether successful or not, they are needed to acquire new reserves and therefore classified as part of Gross Fixed Capital Formation. However, this transaction is not yet accounted for in the present PSNA due to lack of data.

Revisions as of January 2007
Q3 2006 Contribution To Revisions

Based on the Revision Policy approved by the NSCB Executive Board and consistent with the international practice on the revision of National Accounts, we are reflecting 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; DOE and MGB for Mining and Quarrying; DOTC for TCS; DBM and DOF for Construction; DBM for Government Services and Government Consumption Expenditure; as well as POEA for NFIA; MWCI for Electricity, Gas and Water; and BAS, SRA, FMB, & NIA for Breeding Stocks & AFF.

For the third quarter, the major contributors to the revision on the production side came from:

a. Private Services, which contributed 0.15 percentage point;

b. EGW with 0.11 percentage point;

c. Construction with 0.10 percentage point;

d. Manufacturing contributed 0.09 percentage point; and

e. Forestry with 0.05 percentage point.

On the other hand, the following were revised downward and made negative contributions to the revision of GDP:

a. Trade, with negative 0.06 percentage point; and

b. Mining and Quarrying with negative 0.03 percentage point

Meanwhile, NFIA was also revised downward, contributing negative 0.48 percentage point to the GNP revision.

As a result of all the revisions for the third quarter, GDP growth was revised upward from 4.80% to 5.30% while GNP growth revised downward from 5.80% to 5.78%. A more complete tabulation of our revisions is included in our publication (as of January 2007).

For inquiries please contact:
Dir. Raymundo J. Talento
Tel.No.: (632) 895-2425
Email: rj.talento@nscb.gov.ph


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