NSCB - 1st Quarter 2008 National Accounts

First Quarter 2008
Gross National Product &
Gross Domestic Product by Industrial Origin

Services continues to drive the economy

Services, with a share of 49.4 percent to total GDP, contributed the most to GDP growth with 3.3 percentage points. Major contributors to the sector’s growth were Trade, Transportation, Communication and Storage (TCS), Finance and Private Services. The same subsectors also recorded the fastest growth rates

Transport and Storage thwarts TCS deceleration

TCS slowed down to 6.7 percent from 10.5 percent the previous year. Transport and Storage thwarts the TCS downtrend by posting a 10.0 percent growth compared to 7.0 percent last year. Land Transport with its slightly lower growth of 6.6 percent from 7.4 percent last year remained the highest contributor to the growth of TCS. Storage and Services Incidental to Transport (SSIT) followed suit with its double-digit growth of 15.5 percent from 6.1 percent. Water and Air Transport likewise posted double- digit growth of 25.9 percent from 5.0 percent and 13.3 percent from 8.3 percent, respectively.

On the other hand, Communication slowed down to 4.3 percent from 13.2 percent as addition in subscribers to wireless service providers declines.

Wholesale Trade cushions fall of Trade

Trade, which has the highest share among the Services sectors, grew at a slower pace by 6.8 percent from 7.2 percent last year. The slow down was cushioned by the double-digit expansion of Wholesale Trade which posted a double digit growth of 14.5 percent from only 1.1 percent the previous year jacked up by the volume of sale of petroleum products. Retail trade, on the other hand, slowed down to a 4.4 percent growth from 9.3 percent.

Strong performances of Banks continues to boost Finance’s growth

Financial Services continued to expand, growing by 12.9 percent in the first quarter of 2008 from 16.3 percent in the same period last year. This was brought about by the combined strong performances of Banks which increased to 16.5 percent from 14.2 percent and Insurance which grew by 3.6 percent from a 28.7 percent upturn a year ago. Meanwhile Non-Banks posted a decelerated growth of 1.0 percent from 8.4 percent the previous year.

Real Estate boost up ODRE

Ownership of Dwellings and Real Estate (ODRE) remained steadfast at 5.8 percent from 5.5 percent growth in 2007. Increased sales of residential houses provided the growth of Real Estate (RE) from 19.1 percent the previous year to 15.6 percent. Ownership of Dwellings (OD), meanwhile, experienced a faster growth of 2.8 percent from 1.9 percent.

Business Services tops Private Services

Private Services managed to grow by 5.1 percent from 8.4 percent in 2007 as majority of the sub-sectors contributed positively to its growth. The Business Services sub-sector which includes the Business Process Outsourcing (BPO) remained the highest contributor with a growth of 7.6 percent albeit slower than last year’s 14.7 percent gain. Growing at a slower pace, Personal Services up its growth to 2.7 percent from 7.5 percent the previous year. Likewise, Hotels and Restaurants grew by 5.4 percent from 9.1 percent.

The other contributors to the growth of Private Services were: Medical and Health Services which grew by 6.7 percent from last year’s growth of 7.3 percent; Recreational Services which include the broadcasting media, with a marked increase of 6.1 percent from 4.8 percent; Educational Services grew by 1.3 percent from 3.4 percent; and, Others, up by 2.1 percent from 2.6 percent

Government services accelerates

The compensation of new hired government employees caused the acceleration in Government Services by 3.5 percent from its previous year’s growth of 1.7 percent.

GROSS VALUE ADDED in SERVICES
1st Quarter 2007 and 1st Quarter 2008

At Constant 1985 Prices

2INDUSTRY/INDUSTRY GROUP	1st Qtr 2007	1st Qtr 2008	Growth Rate (%)
SERVICE SECTOR	156,118	166,848	6.9
a. Transport., Comm., Stor.	28,970	30,917	6.7
b. Trade	49,931	53,330	6.8
c. Finance	20,079	22,661	12.9
d. O. Dwellings & R. Estate	15,235	16,123	5.8
e. Private Services	27,655	29,067	5.1
f. Government Services	14,248	14,750	3.5

At Current Prices

INDUSTRY/INDUSTRY GROUP	1st Qtr 2007	1st Qtr 2008	Growth Rate (%)
SERVICE SECTOR	824,796	916,450	11.1
a. Transport., Comm., Stor.	113,433	122,736	8.2
b. Trade	207,861	233,781	12.5
c. Finance	87,907	104,671	19.1
d. O. Dwellings & R. Estate	90,536	98,211	8.5
e. Private Services	219,478	241,070	9.8
f. Government Services	105,581	115,981	9.9

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	3,267,004	3,604,542	10.3	621,389	671,883	8.1
a. Transport., Comm., Stor.	446,224	478,389	7.2	111,412	120,698	8.3
b. Trade	877,544	981,101	11.8	215,960	233,774	8.2
c. Finance	311,444	361,972	16.2	71,891	81,310	13.1
d. O. Dwellings & R. Estate	350,676	373,973	6.6	59,734	63,234	5.9
e. Private Services	830,152	936,912	12.9	107,316	116,374	8.4
f. Government Services	450,964	472,196	4.7	55,077	56,493	2.6

Source: National Statistical Coordination Board (NSCB)

Posted 29 May 2008