Technical notes on the PSNA are 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.

Measurement of the Gross National Product (GNP)

Gross National Product (GNP) measures the total value of goods and services produced by the country’s residents regardless of their location. It is estimated by adding the Gross Domestic Product (GDP) and the Net Factor Income From Abroad (NFIA).

GDP is the value of goods and services produced within the domestic territory for a particular period while NFIA is defined as the sum of the receipts of compensation and property income of residents from the rest of the world less the payments of the said items to the rest of the world (See Table 1).  Compensation consists of salaries and wages, other remuneration in cash or in kind and the contributions paid by

                                Table 1. Definition/Coverage of NFIA       

employers on behalf of the employees to social security schemes or  private insurance insurance schemes to secure benefits for employees. Property income is the income receivable by the owners of financial assets or a tangible non-produced asset. It consists of 1) earnings, profits and dividends and 2) interest income.   Interest income comes from financial investments abroad; loans granted to foreign parties; and earnings on time and savings deposits.

Estimates of compensation inflow are based on the data from the Philippine Overseas Employment Administration (POEA).  For the third quarter 2007, total inflow was largely contributed by compensation, with 84.3 percent while property income accounted for 15 .7 percent.  

On the other hand, compensation outflow, consists of salaries and wages, other remuneration in cash or in kind and the contributions paid by employers to non-residents working in the Philippines.  Usually, this amount is not significant based on the BOP figures. Meanwhile, Property expense consists of 1) earnings, profits and dividends of non-residents from investments in the Philippines; 2) interest payments on loans granted to local firms by foreign firms; and 3) interest payments on savings and time deposits.

The data for property expense/income are sourced from the Balance of Payments (BOP) of the Bangko Sentral ng Pilipinas.

Revisions as of November 2007

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 Imports, MISSI, QSPBI, and Building Permits; BSP on the BOP; DOE and MGB for Mining and Quarrying; DOTC for TCS; DBM for Government Services and Government Consumption Expenditure; MWCI for Electricity, Gas and Water; and BAS and FMB for Breeding Stocks & AFF.

Major upward revisions on the production side came from:  

1. Agriculture and Fishery, which contributed 0.10 percentage point;
2. Private Services, with 0.04 percentage point; and
3. Mining and Quarrying with 0.02 percentage point;

On the other hand, the following were revised downward:

1. Manufacturing, with negative 0.08 percentage point contribution to revision;
2. TCS with negative 0.02 percentage point; and
3. EGW and Construction, each with negative 0.01 percentage point;

Meanwhile, NFIA was revised upward contributing 0.05 percentage point.

With all the revisions, GDP growth remained at 7.5% while GNP growth was revised upward from 8.3% to 8.4%.  A more complete tabulation of our revisions is included in our publication.

For inquiries please contact:

Dir. Raymundo J. Talento
Economic Statistics Office
National Statistical Coordination Board

Tel. No. (632) 895-2481
E-mail: rj.talento@nscb.gov.ph