NSCB - 4th Quarter 2007 National Accounts

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

Services continues to stir up the economy

Services, with a share of 45.2 percent of total GDP, contributed the most to GDP growth with 4.4 percentage points. Major contributors to the sector’s growth were Trade, Private Services and Finance.

TCS sustains growth

Transportation, Communication and Storage recorded a very modest growth of 7.1 percent in the fourth quarter of 2007 from 7.0 percent.

Communications, the leading contributor to TCS growth, registered a lower growth of 7.0 percent from 7.4 percent in the previous year. The growth was sustained by price competitiveness and different kind services offered by key players resulting to increased patronage of mobile phone call services

Transport and Storage accelerated its growth by 7.1 percent in the fourth quarter of 2007 from 6.4 percent in the same period of last year with the increased passenger of air transport and freight patronage. Air Transport and Storage and Services Incidental to Transport (SSIT) posted robust of growth of 19.2 percent and 12.3 percent from 6.2 percent and 1.8 percent, respectively. Land Transport, on the other hand, registered a lower growth of 6.4 percent from 9.3 percent while Water Transport was still down but lower negative 0.2 from negative 5.1 percent.

Retail Trade backs Total Trade

Trade Services accelerated its pace to 10.7 percent in the fourth quarter of 2007, from 8.1 percent in the previous year. Retail Trade, which comprises the bulk of total Trade, grew by 13.3 percent from 9.7 percent shored up by brisk sales from the newly opened supermalls. Wholesale Trade, on the other hand, recorded a slower growth of 2.2 percent from 3.2 percent in 2006.

Banks and Insurance push Finance’s growth

Financial Services continued to grow albeit at a slower pace of 13.3 percent in the fourth quarter of 2007 from 15.6 percent in the previous year. Banks accelerated its growth to 12.0 percent from 10.1 percent with increased bank lending coupled by low interest rates. Non-banks, which include financial services from investment companies, security dealers, brokers and pawnshops, registered a diminished growth of 1.6 percent from 51.8 percent in the previous year. Meanwhile, Insurance continued to post double-digit growth since the first quarter of 2007 as it grew by 25.1 percent from 20.6 percent in 2006.

Ownership of Dwellings and Real Estate slows down

Ownership of Dwellings and Real Estate (ODRE) continued to grow by 5.4 percent in the fourth quarter of 2007 from 6.6 percent in the previous year.

Real Estate slowed down its growth to 12.6 percent from 22.2 percent posted during the fourth quarter of 2006. On the other hand, Ownership of Dwellings which accounts for about 78 percent of ODRE, grew by 2.7 percent from 1.9 percent the previous quarter. This growth of Ownership of Dwellings is the highest growth in all quarters of 2007.

Revived tourism industry revs up Private Services

Private Services accelerated to 8.8 percent in the fourth quarter of 2007 from 8.4 percent in 2006 as tourism boomed despite a tense political period in the fourth quarter. Tourism receipts went up as a result of a substantial hike in the average length of stay by tourists and the increased rate in visitor arrivals. Thus, translating to increased revenues of hotels, restaurants, recreation, personal services and medical establishments as well.

Recreational Services and Hotels and Restaurants registered double-digit and accelerated growths of 15.4 percent and 11.5 percent in the fourth quarter of 2007 from 12.2 percent and 5.1 percent, respectively, in the same quarter last year. Meanwhile, Business Services, which include the Business Processing Outsourcing (BPO) industry, grew by 8.6 percent from 13.2 percent. Personal Services, which include laundry services, spas, beauty parlors and other related services registered a slower growth of 7.5 percent from 9.5 percent in 2006. Accelerated growths were registered for Educational Services, from 1.7 percent to 2.1 percent, and Medical and Health Services, from 6.7 to 8.4 percent. Meanwhile, Other Services, which include waste collection and disposal and other sanitary and similar services, slackened to 1.6 percent from 3.1 percent the previous year.

Government Services sustain growth

Government services grew by 3.9 percent during the fourth quarter 2007 from 6.1 percent in the previous year due the provision of additional incentives to government personnel.

GROSS VALUE ADDED in SERVICES
4th Quarter 2007 and 4th Quarter 2006
AT CURRENT PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	Q4 2006	Q4 2007	Growth Rate (%)
SERVICE SECTOR	909,015	1,015,531	11.7
a. Transport., Comm., Stor.	119,842	128,745	7.4
b. Trade	264,055	302,891	14.7
c. Finance	82,941	97,108	17.1
d. O. Dwellings & R. Estate	89,286	94,983	6.4
e. Private Services	226,172	254,355	12.5
f. Government Services	126,720	137,449	8.5

GROSS VALUE ADDED in SERVICES
4th Quarter 2007 and 4th Quarter 2006
AT CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	Q4 2006	Q4 2007	Growth Rate (%)
SERVICE SECTOR	171,968	187,475	9.0
a. Transport., Comm., Stor.	31,054	33,251	7.1
b. Trade	64,305	71,205	10.7
c. Finance	18,970	21,502	13.3
d. O. Dwellings & R. Estate	15,183	15,997	5.4
e. Private Services	28,855	31,391	8.8
f. Government Services	13,601	14,130	3.9

GROSS VALUE ADDED in SERVICES
Annual 2007 and 2006
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/ INDUSTRY GROUP	AT CURRENT PRICES			AT CONSTANT PRICES
INDUSTRY/ INDUSTRY GROUP	2006	2007	Growth Rate (%)	2006	2007	Growth Rate (%)
SERVICE SECTOR	3,269,192	3,631,243	11.1	621,667	675,656	8.7
a. Transport., Comm., Stor.	446,224	478,232	7.2	111,412	120,582	8.2
b. Trade	877,544	997,164	13.6	215,960	237,128	9.8
c. Finance	311,953	359,897	15.4	72,009	80,838	12.3
d. O. Dwellings & R. Estate	350,676	374,519	6.8	59,734	63,333	6.0
e. Private Services	830,152	939,519	13.2	107,316	116,718	8.8
f. Government Services	452,642	481,912	6.5	55,237	57,056	3.3

Source: National Statistical Coordination Board (NSCB)

Posted 31 January 2008.


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