NSCB - 3rd Quarter 2008 National Accounts

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

Investments in Fixed Capital Formation slows down

For the third quarter of 2008, investments in Fixed Capital Formation slowed down to 4.8 percent from 7.6 percent in 2007.

Investments in Construction sustains growth

Increased public expenditures on capital outlay for priority projects expanded the growth of Public Construction by 20.0 percent from 11.5 percent a year ago, as government tried to stimulate the economy.

Likewise, Private Construction sustained its growth by posting 13.8 percent from 19.5 percent recorded last year. The growth of the sub sector was sustained by the increases in residential and non-residential constructions.

The growth in both public and private construction resulted to the sustained growth of construction by 15.8 percent in the third quarter of 2008 from 16.8 percent of the same period of 2007.

Durable Equipment posts meager growth

Investments in Durable Equipment posted a meager growth of 0.01 percent from 2.33 percent in the previous year. Increased investments were registered in sixteen (16) out of the twenty (20) types of fixed assets.

Considerable expansion in investments were noted in Water Transport, which soared to 111.7 percent from negative 85.7 percent, and Air Transport which rebounded to 34.4 percent from negative 17.6 percent. Likewise, growth, albeit slower, was observed in the following sub sectors: Road Transport, by 7.4 percent from 65.1 percent; Other Miscellaneous Equipment, by 14.6 percent from 16.2 percent; and, Other General Industrial Machineries, by 15.4 percent from 31.8 percent.

In contrast, decline in investments during the period was recorded in the following: Telecommunications and Sound Recording/Reproducing Equipment, down by 29.4 percent from a growth of 6.6 percent; Other Electrical Machinery and apparatus, down by 31.8 percent from positive 16.6 percent; Office Machines & Data Processing, down by 9.3 percent from negative 3.9 percent; and, Metal Working Machineries, down by 38.9 percent from negative 66.4 percent.

Decreased Investments in Orchard Development pulls down Breeding Stocks, Orchard Development and Afforestation

Investments in capital formation for combined Breeding Stocks, Orchard Development and Afforestation slipped to negative 0.8 percent in the third quarter of 2008 from a growth of 3.6 percent with the decreased investments in Orchard Development and livestocks.

Withdrawals erode Inventory

Total withdrawal in stocks for the third quarter of 2008 amounted to P643 million compared to the P 822 million additions in the previous year. Additions in stocks for agriculture and petroleum products were not enough to supplant the significant withdrawals in stocks for establishments and government.

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
3rd Quarter 2007 and 3rd Quarter 2008
AT CURRENT PRICES, IN MILLION PESO

TYPE OF EXPENDITURE	3rd Qtr 2007	3rd Qtr 2008	Growth Rate (%)
3. Capital Formation	236,479	286,740	21.3
A. Fixed Capital	233,839	284,340	21.6
1. Construction	122,930	162,734	32.4
2. Durable Equipment	95,406	98,624	3.4
3. Breeding Stock & Orchard Dev't	15,504	22,982	48.2
B. Changes in Stocks	2,640	2,400

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
3rd Quarter 2007 and 3rd Quarter 2008
AT CONSTANT 1985 PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	3rd Qtr 2007	3rd Qtr 2008	Growth Rate (%)
3. Capital Formation	58,072	60,886	4.8
A. Fixed Capital	57,249	61,529	7.5
1. Construction	27,255	31,557	15.8
2. Durable Equipment	26,821	26,824	0.0
3. Breeding Stock & Orchard Dev't	3,174	3,148	-0.8
B. Changes in Stocks	822	-643

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 27 November 2008.