NSCB - 2nd Quarter 2008 National Accounts

Second Quarter 2008
Gross National Product &
Gross Domestic Product by Expenditure Shares

Investments in Fixed Capital Formation plummets

For the second quarter of 2008, investments in Fixed Capital Formation plummeted to 5.6 percent from a growth of 20.9 percent in 2007.

Investments in Private Construction Expands

The robust growth of Private Construction by 25.0 percent from 13.7 percent a year ago led to the expansion in total construction by 8.1 percent from 34.4 percent in the same period last year.

On the other hand, Public Construction experienced a reversal, dropping by negative 6.4 percent from a double-digit growth of 59.4 percent in the previous year, due to the decrease in capital outlays for public works.

Investments in Durable Equipment maintains growth

Investments in Durable Equipment slowed down to a growth of 4.0 percent from 8.8 percent in the previous year. Increased investments were registered in thirteen (13) out of the twenty (20) types of fixed assets.

The most significant expansions in investments were noted in the following sub-sectors: Road Vehicle, which rebounded to a double-digit growth of 33.2 percent from negative 4.7 percent; Other Specialized Industrial Machineries, which turned around to 18.4 percent growth from negative 2.4 percent; Mining, Construction Machineries, grew by 37.2 percent from 43.0 percent; Sawmill and Logging Machineries, up by 0.4 percent from negative 15.9 percent; Telecommunication and Sound Recording/Reproducing Equipments, which grew by 3.4 percent from 5.2 percent.

The biggest decline in investment during the period were recorded in: Other Electrical Machinery and Apparatus, which suffered a reversal, at negative 23.7 percent from a growth of 10.9 percent; Other General Industrial Machinery, down by negative 19.7 percent from 32.5 percent; Air Transport, plummeted to negative 18.6 from a staggering 235.3 percent; Pulp and Paper Machineries, dived to negative 37.7 percent from 24.9 percent; and, Railway Transport, slumped to negative 63.9 percent from a reeling 301.0 percent growth.

Decreased Investments pulls down Breeding Stocks, Orchard Development and Afforestation

Growth in capital formation for combined Breeding Stocks, Orchard Development and Afforestation slowed down to 5.0 percent in the second quarter of 2008 from a growth of 7.1 percent due to decreased investments in Orchard Development and Afforestation.

Stocks increases

Total addition to stocks in the second quarter of 2008 amounted to P976 million compared to the P4,488 million withdrawals in the previous year. Additions to stocks was observed in all its sub groups except Petroleum Products, Trade and Government.

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
2nd Quarter 2007 and 2nd Quarter 2008
AT CURRENT PRICES, IN MILLION PESO

TYPE OF EXPENDITURE	2nd Qtr 2007	2nd Qtr 2008	Growth Rate (%)
3. Capital Formation	264,002	315,636	19.6
A. Fixed Capital	281,113	316,626	12.6
1. Construction	161,345	189,534	17.5
2. Durable Equipment	100,834	103,710	2.9
3. Breeding Stock & Orchard Dev't	18,934	23,383	23.5
B. Changes in Stocks	-17,111	-990

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
2nd Quarter 2007 and 2nd Quarter 2008
AT CONSTANT 1985 PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	2nd Qtr 2007	2nd Qtr 2008	Growth Rate (%)
3. Capital Formation	62,890	72,145	14.7
A. Fixed Capital	67,373	71,169	5.6
1. Construction	35,754	38,667	8.1
2. Durable Equipment	27,473	28,564	4.0
3. Breeding Stock & Orchard Dev't	4,146	3,937	-5.0
B. Changes in Stocks	-4,484	976

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
Annual 2007 and 2006
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	AT CURRENT PRICES			AT CONSTANT PRICES
TYPE OF EXPENDITURE	2006	2007	Growth Rate (%)	2006	2007	Growth Rate (%)
Capital Formation	874,583	1,013,941	15.9	224,105	249,121	11.2
A. Fixed Capital	845,882	985,499	16.5	217,305	242,890	11.8
1. Construction	415,244	524,877	26.4	94,188	114,266	21.3
2. Durable Equipment	358,265	381,935	6.6	106,641	111,412	4.5
3. Breeding Stock & Orchard Dev't	72,373	78,666	8.7	16,476	17,212	4.5
B. Changes in Stocks	28,701	28,442		6,800	6,231

Source: National Statistical Coordination Board (NSCB)

Posted 28 August 2008.