NSCB -2nd Quarter 2008 National Accounts

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

Resilient Services continues to be the economy’s linchpin

Services, with a share of 49.2 percent of total GDP, continued to gain strength at 4.3 percent from 8.4 percent last year, and contributed the most to the GDP growth with 2.1 percentage points. Major contributors to the sector’s growth were Trade, Transportation, Communication and Storage (TCS), and Private Services.

TCS slows down

Hit hard by the reeling cost of fuel in the second quarter, Transportation, Communication and Storage (TCS) decelerated to 3.3 percent this year from 9.6 percent last year. Land and air transport both shrunk to 3.2 percent and 7.2 percent from 4.9 percent and 13.8 percent, respectively. On the other hand, Water Transport maintained its growth of 1.7 percent. Of all the sub sectors of TCS, only Storage and Services Incidental to Transport (SSIT) registered an upward growth of 9.9 percent from 9.2 percent recorded the previous year.

Meanwhile, Communications, the main contributor to TCS growth, also weakened to 2.6 percent from a double-digit growth of 13.0 percent chronicled last year as consumers squeezed communication spending due to higher fuel and food costs.

Wholesale Trade fuels Trade Services growth

From a 7.6 percent expansion last year, Trade Services grew slower this year at 4.3 percent but contributed the most to the GDP growth this period. The overall performance of the sector was bolstered by Wholesale Trade which registered a 9.8 percent upswing from 5.1 percent last year. This can be attributed to the petroleum and pharmaceutical products. Retail Trade, on the other hand, grew at a sluggish rate of 2.6 percent compared to 8.4 percent gain the previous year

Gains in Finance Modest

Financial Services continued to grow, albeit at a slower pace of 2.4 percent in the second quarter of 2008 from a double-digit growth of 14.2 percent registered the previous year. Banks posted a lower growth at 4.4 percent from its year ago rate of 11.3 percent. Insurance also grew by a meager 0.3 percent from a high 40.5 percent last year.

In contrast, Non-banks, which include financial services from investment companies, security dealers, brokers and pawnshops, plummeted to negative 4.9 percent from 1.5 percent from the previous year.

ODRE sustains growth

Ownership of Dwellings and Real Estate (ODRE) widened patronage climbing up at an accelerated rate of 7.3 percent from 6.0 percent last year. Real Estate, the greater contributor to ODRE’s growth this quarter, went up by 21.7 percent, slightly higher than last year’s growth of 21.4 percent. Increased renting and leasing operations of giant supermalls and shopping centers nationwide drove the Real Estate industry. On the other hand, Ownership of Dwellings, which accounted for 70.7 percent of ODRE, grew by 2.3 percent, from 1.5 percent in 2006.

Business Services continue to prop up Private Services

Private Services grew at a decelerated pace of 6.2 percent from 9.1 percent recorded last year. The major drivers of growth were: Business Services, grew at a slower pace of 10.5 percent from 15.3 percent; Personal Services, expanded to 7.9 percent from 4.7 percent; Recreational Services, down from 14.7 percent to 9.7 percent; Hotels and Restaurants, grew sluggishly at 3.5 percent from 11.0 percent; Medical and Health Services, slowed down to 1.8 percent from 6.0 percent; and, Other Services, grew modestly by 2.9 percent from 3.3 percent.

Conversely, Educational Services pulled down the growth of Private Services, reversing its 2 percent growth last year to negative 3.0 percent this year.

Government Services maintains growth

Government Services managed to maintain its previous year’s growth of 2.4 percent despite government’s efforts to reduce poverty.

GROSS VALUE ADDED in SERVICES
2nd Quarter 2007 and 2nd Quarter 2008

At Constant 1985 Prices

2INDUSTRY/INDUSTRY GROUP	2nd Qtr 2007	2nd Qtr 2008	Growth Rate (%)
SERVICE SECTOR	167,550	174,788	4.3
a. Transport., Comm., Stor.	31,370	32,409	3.3
b. Trade	55,741	58,135	4.3
c. Finance	20,937	21,448	2.4
d. O. Dwellings & R. Estate	15,718	16,866	7.3
e. Private Services	28,875	30,665	6.2
f. Government Services	14,908	15,265	2.4

At Current Prices

INDUSTRY/INDUSTRY GROUP	2nd Qtr 2007	2nd Qtr 2008	Growth Rate (%)
SERVICE SECTOR	898,048	988,641	10.1
a. Transport., Comm., Stor.	126,388	132,096	4.5
b. Trade	233,358	267,592	14.7
c. Finance	92,692	104,207	12.4
d. O. Dwellings & R. Estate	92,715	103,450	11.6
e. Private Services	231,682	258,314	11.5
f. Government Services	121,213	122,983	1.5

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 28 August 2008