NSCB - First Quarter 2007 GNP

First Quarter 2007
Gross National Product &
Gross Domestic Product by Industrial Origin

Manufacturing propelled Industry growth

Among the subsectors, Mining and Quarrying (M&Q) posted the fastest growth followed by Construction. All sectors contributed positively to the 5.3 percent expansion of the Industry sectors but the main growth propeller was Manufacturing which contributed 3.4 percentage points to the overall growth.

Increased demand for Natural Gas pushed Mining and Quarrying
to an accelerated growth

Mining and Quarrying escalated from a 1.8 percent growth in the previous year to an 11.0 percent expansion this year. Crude Oil, Natural Gas and Condensate posted a strong growth of 30.1 percent brought about by the increased demand for natural gas in the electricity generation industry. The other top contributors to the sector’s improved performance this year were Gold Mining and Nickel Mining, which grew by 5.6 percent and 120.2 percent, respectively. Nickel growth was driven by the high demand for nickel from the stainless steel making industry in China.

All subsectors exhibited positive growths except for Chromium Mining which contracted by 8.8 percent after two successive years of hefty growths in the first quarter. Production decreased owing to lower grade of ore in mine site.

Copper Mining; Crude Oil, Natural Gas and Condensate; and Stone Quarrying, Clay and Sandpits bounced back from their negative growths last year while Nickel Mining exhibited an accelerated growth. On the other hand, Gold Mining, Other Metallic and Other non-metallic Mining maintained their upward trend, albeit at a slower pace.

Manufacturing decelerates slightly

While still contributing significantly to the overall growth, Manufacturing has decelerated in the first quarter for the past two years. For 2007, it grew by 4.6 percent from 5.0 percent in 2006 and 5.2 percent in 2005.

Major driving force to the growth of Manufacturing was the strong growth posted by Food manufacturing, at 7.7 percent. Furniture and fixtures likewise propped up the sector's growth, rising sharply by 38.7 percent after a 2.8 percent dip the previous year. The other subsectors with significant contributions to growth were Chemical and Chemical Products which went up by 6.5 percent from a 1.8 percent fall, Basic Metal Industries which slightly decelerated to 9.4 percent and Non-metallic Mineral Products which expanded to 15.7 percent after two consecutive years of decline.

On the bleak side, sharp declines were registered for a number of subsectors weakening the overall performance of Manufacturing for the quarter. Tobacco Manufactures suffered the biggest tumble as it shrank by 33.7 percent from last year’s positive growth. The other subsectors that mainly stifled the growth of Manufacturing were Beverage Industries dropping by 10.6 percent from a 5.6 percent upturn the previous year, Rubber Products decreasing by 7.5 percent from a 5.8 percent growth, Electrical Machinery which contracted by 3.2 percent after a 4.8 percent upswing last year, Machinery except Electrical which contracted further by 2.2 percent after declining by 9.1 percent the previous year, and Products of Petroleum and Coal from 15.8 percent upturn to a 0.1 percent decline.

Construction continues to recover

Construction continues to recover from the downturn it suffered in 2005. Spurred by government spending on infrastructure, construction grew by 8.6 percent, slower than the 10.7 percent growth last year.

Intensified energy sales to commercial and industrial users;
aggressive expansion initiatives rev up Water

Electricity, Gas and Water (EGW) utilities maintained an accelerated growth of 4.1 percent due to significant increases in energy sales to the commercial and industrial users. Meanwhile, aggressive expansion initiatives results in a 7.6 percent growth in Water.

GROSS VALUE ADDED in INDUSTRY
1st Quarter 2006 and 1st Quarter 2007
IN MILLION PESOS

At Constant 1985 Prices

INDUSTRY/INDUSTRY GROUP	1st Qtr 2006	1st Qtr 2007	Growth Rate (%)
INDUSTRY SECTOR	95,421	100,525	5.3
a. Mining & Quarrying	5,068	5,626	11.0
b. Manufacturing	70,755	74,024	4.6
c. Construction	10,545	11,451	8.6
d. Elect,Gas and Water	9,053	9,424	4.1

At Current Prices

INDUSTRY/INDUSTRY GROUP	1st Qtr 2006	1st Qtr 2007	Growth Rate (%)
INDUSTRY SECTOR	432,801	476,234	10.0
a. Mining & Quarrying	16,975	22,514	32.6
b. Manufacturing	311,221	338,508	8.8
c. Construction	52,999	59,040	11.4
d. Elect,Gas and Water	51,607	56,172	8.8

GROSS VALUE ADDED in INDUSTRY
2005 and 2006
IN MILLION PESOS

INDUSTRY	AT CURRENT PRICES			AT CONSTANT PRICES
INDUSTRY	2005	2006	Growth Rate (%)	2005	2006	Growth Rate (%)
INDUSTRY SECTOR	1,735,148	1,907,980	10.0	396,882	414,931	4.5
a. Mining & Quarrying	63,639	75,557	18.7	20,032	18,813	-6.1
b. Manufacturing	1,264,651	1,381,171	9.2	293,334	306,837	4.6
c. Construction	210,191	235,189	11.9	45,852	49,213	7.3
d. Elect,Gas and Water	196,668	216,062	9.9	37,663	40,068	6.4

Source: National Statistical Coordination Board (NSCB)

Posted May 31, 2007.


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