NSCB - 4th Quarter 2008 National Accounts

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

Fixed Capital Formation decelerates

Investments in Fixed Capital Formation decelerated to 1.9 percent growth from last year’s growth of 6.7 percent pulled down by poor investments in durable Equipment.

Investment in Construction slows down slightly

Investments in Construction slowed down slightly to 11.6 percent from 11.7 percent. Public construction decelerated to 3.2 percent from 15.4 percent posted last year while Private Construction posted a significant growth of 17.8 percent from 9.2 percent in the previous year.

Global Financial Crisis pulls down growth of Durable Equipment

The global financial crisis adversely affected investments in capital formation as Durable Equipment dropped by 7.4 percent from 2.6 percent growth posted in 2007. Decreased investments were registered in thirteen (13) out of the twenty (20) types of fixed asset investments.

The biggest declines during the quarter were posted by: Telecommunications and Sound Recording/Reporting Equipment, down by negative 15.7 percent from negative 22.1 percent; Other General Industrial Machineries, slipped to negative 23.1 percent from a growth of 2.8 percent; Office Machines and Data Processing, suffered a reversal from 16.0 percent to negative 19.7 percent; Other Special Industrial Machineries, down by 14.8 percent from 17.1 percent; Road Vehicles, down by 3.8 percent from 15.0 percent; Other Electrical Machinery and Apparatus, declined further by 11.9 percent from a 15.8 percent slump; and, Pumps and Compressors, reversed its growth from 6.8 percent to negative 8.8 percent.

On the other hand, the following sub sectors posted positive growths in investments: Air Transport, which surged to 55.6 percent from 36.9 percent; Mining, Construction Machineries, 23.4 percent from 107.4 percent; Textile Machineries, 44.7 percent from 19.3 percent; Aircon and Refrigeration Equipment, 3.0 percent from 34.5 percent; Sugarmill Machineries, skyrocketed to 1375.3 percent from negative 90.0 percent; Tractor Other Than Steam, 4.4 percent from 8.0 percent; and, Railway Transport, rebounded to 63.8 percent from negative 99.3 percent.

Investment in Breeding Stocks, Orchard Development
and Afforestation slows down

Capital formation for the combined Breeding Stocks, Orchard Development and Afforestation for the fourth quarter of 2008 decelerated to 1.0 percent from a growth of 5.1 percent in 2007 as expenditures on Orchard Development decreased during the period.

Agriculture main contributor to the accumulation in Stocks
for the 4th Quarter

Total stocks in the fourth quarter of 2008 amounted to P1,293 million, a lower addition as compared to P8,385 million in 2007. Additions to stocks for this period were largely attributed to the increased stocks of rice and sugar.

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
4th Quarter 2007 and 4th Quarter 2008
IN MILLION PESOS

AT CURRENT PRICES

TYPE OF EXPENDITURE	4th Qtr 2007	4th Qtr 2008	Growth Rate (%)
3. Capital Formation	277,053	291,049	5.1
A. Fixed Capital	244,205	282,376	15.6
1. Construction	122,319	148,836	21.7
2. Durable Equipment	95,029	96,128	1.2
3. Breeding Stock & Orchard Dev't	26,858	37,413	39.3
B. Changes in Stocks	32,847	8,673

AT CONSTANT 1985 PRICES

TYPE OF EXPENDITURE	4th Qtr 2007	4th Qtr 2008	Growth Rate (%)
3. Capital Formation	66,345	60,350	-9.0
A. Fixed Capital	57,960	59,057	1.9
1. Construction	25,909	28,920	11.6
2. Durable Equipment	26,679	24,710	-7.4
3. Breeding Stock & Orchard Dev't	5,372	5,427	1.0
B. Changes in Stocks	8,385	1,293

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
Annual 2007 and 2008
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	AT CURRENT PRICES			AT CONSTANT PRICES
TYPE OF EXPENDITURE	2007	2008	Growth Rate (%)	2007	2008	Growth Rate (%)
Capital Formation	1,013,941	1,149,429	13.4	249,121	259,677	4.2
A. Fixed Capital	985,499	1,110,492	12.7	242,890	251,780	3.7
1. Construction	524,877	609,347	16.1	114,266	121,501	6.3
2. Durable Equipment	381,935	399,641	4.6	111,412	113,337	1.7
3. Breeding Stock & Orchard Dev't	78,686	101,505	29.0	17,212	16,941	-1.6
B. Changes in Stocks	28,442	38,937		6,231	7,898

Source: National Statistical Coordination Board (NSCB)

Posted 29 January 2009.