NSCB - 4th Quarter 2008 National Accounts

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

Services still the lead contributor to GDP

Services, with a share of 44.3 percent of total GDP, contributed the most to GDP growth with 2.4 percentage points. Major contributors to the sector’s growth were Trade, Private Services and Transportation, Communication & Storage.

Communications sustains growth of TCS

Transportation, Communication and Storage recorded a very modest growth of 2.6 percent in the fourth quarter of 2008 from 7.4 percent in the same period last year.

Communications, the leading contributor to TCS growth, registered a slower growth of 5.1 percent from 8.0 percent in the previous year, as consumer demand for communication services slackened.

Transport and Storage suffered a reversal with negative 1.1 percent in the fourth quarter of 2008 from a growth of 6.6 percent in the same period last year with the decreased freight patronage. Air Transport and Storage & Services Incidental to Transport (SSIT) posted lower growth of 7.1 percent and 1.3 percent compared to last year’s remarkable growths of 17.0 percent and 15.1 percent, respectively,

Similarly, both Land and Water Transports performed poorly during the period, with negative 2.1 percent and 0.9 percent from 5.2 percent and negative 1.4 percent, respectively, registered last year.

Trade posts sluggish growth

Trade Services decelerated to 4.9 percent in the fourth quarter of 2008, from 8.8 percent in the previous year. Retail Trade, which comprises the bulk of total Trade, slowed down to 2.8 percent from 6.0 percent, as prices of retail commodities rose. Likewise, Wholesale Trade decelerated to 11.1 percent from 17.9 percent in 2007.

Bank lending keeps Finance afloat

Financial Services continued to grow albeit at a slower pace of 4.6 percent in the fourth quarter of 2009 from 10.7 percent in the previous year. Banks accelerated to 11.5 percent from 6.1 percent with sustained bank lending due to low interest rates.

However, Non banks, which include financial services from investment companies, security dealers, brokers and pawnshops, slipped to negative 1.9 percent from 5.6 percent growth in the previous year. Likewise, Insurance dived to negative 12.2 percent from the robust growth of 30.2 percent posted in 2007.

Ownership of Dwellings and Real Estate accelerates

Ownership of Dwellings and Real Estate (ODRE) accelerated to 6.5 percent in the fourth quarter of 2008 from 5.0 percent in the previous year.

Real Estate grew by 16.7 percent from 11.4 percent posted during the fourth quarter of 2007. Ownership of Dwellings which accounts for about 69.0 percent of ODRE, grew by 2.5 percent from 2.7 percent the previous quarter.

Business revs up Private Services

Private Services decelerated to 5.4 percent in the fourth quarter of 2008 from 7.6 percent growth in 2007.

Business Services, which include the Business Processing Outsourcing (BPO) industry, was the leading contributor to the growth of the sector with 15.3 percent from 7.4 percent.

The other sub-sectors that contributed to the growth of Private Services were: Personal Services, which include laundry services, spas, beauty parlors and other related services, 4.8 percent from 11.9 percent; Recreational Services, 6.0 percent from 12.4 percent; Hotels and Restaurants, 2.4 percent from 6.4 percent; Medical Services, 0.8 percent from 3.8 percent; and, Other Services, which include waste collection and disposal and other sanitary and similar services, 2.5 percent from 1.6 percent.

On the other hand, Private Services was pulled down by Educational Services, which slipped to negative 2.7 percent from 0.8 percent the previous year.

Government Services expands

Government services grew by 7.7 percent during the fourth quarter 2008 from 2.9 percent in the previous year due to the provision of 10,000 pesos additional incentives to government personnel.

GROSS VALUE ADDED in SERVICES
4th Quarter 2007 and 4th Quarter 2008
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

At Current Prices

INDUSTRY/INDUSTRY GROUP	4th Qtr 2007	4th Qtr 2008	Growth Rate (%)
SERVICE SECTOR	998,629	1,122,522	12.4
a. Transport., Comm., Stor.	128,903	135,051	4.8
b. Trade	296,512	339,475	14.5
c. Finance	95,045	109,056	14.7
d. O. Dwellings & R. Estate	94,750	105,886	11.8
e. Private Services	251,748	282,159	12.1
f. Government Services	131,671	150,895	14.6

At Constant 1985 Prices

INDUSTRY/INDUSTRY GROUP	4th Qtr 2007	4th Qtr 2008	Growth Rate (%)
SERVICE SECTOR	185,077	194,110	4.9
a. Transport., Comm., Stor.	33,366	34,230	2.6
b. Trade	69,958	73,371	4.9
c. Finance	21,044	22,020	4.6
d. O. Dwellings & R. Estate	15,947	16,985	6.5
e. Private Services	31,046	32,733	5.4
f. Government Services	13,716	14,772	7.7

GROSS VALUE ADDED in SERVICES
Annual 2007 and 2008
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/ INDUSTRY GROUP	AT CURRENT PRICES			AT CONSTANT PRICES
INDUSTRY/ INDUSTRY GROUP	2007	2008	Growth Rate (%)	2007	2008	Growth Rate (%)
SERVICE SECTOR	3,604,542	4,022,850	11.6	671,883	705,045	4.9
a. Transport., Comm., Stor.	478,389	506,552	5.9	120,698	125,189	3.7
b. Trade	981,101	1,124,271	14.6	233,774	244,763	4.7
c. Finance	361,972	414,483	14.5	81,310	85,299	4.9
d. O. Dwellings & R. Estate	373,973	416,764	11.4	63,234	67,667	7.0
e. Private Services	936,912	1,045,404	11.6	116,374	122,979	5.7
f. Government Services	472,196	515,376	9.1	56,493	59,147	4.7

Source: National Statistical Coordination Board (NSCB)

Posted 29 January 2009