NSCB - 1st Quarter 2009 National Accounts

First Quarter 2009
Gross National Product &
Gross Domestic Product by Industrial Origin

Services continues to drive the economy

In the Services sector, Transportation, Communication and Storage recorded an unimpressive but already the fastest growth [of 4.1%] followed by Private Services [2.9%], ODRE [1.8%] and Finance [0.2%] which has been losing luster for four quarters now.

The long delayed rationalization of the bureaucracy continues to inflict damage as Government Services stagnated to zero growth, its worst performance since the fourth quarter of 2004. Trade also suffered as it recorded a decline of 0.2%, not seen since the third quarter of 1991.

Communication impedes TCS deceleration

Communication softened the downtrend of Transportation, Communication and Storage (TCS) by posting a modest growth of 6.4 percent from 4.4 percent last year. TCS slowed down to 4.1 percent from 5.6 percent.

The deceleration of TCS can be attributed to the slowed down growth of Transport and Storage, which grew by 1.1 percent from 7.3 percent recorded last year. Contributing to the growth of Transport and Storage are: Land Transport, which grew by 1.7 percent from 5.6 percent; Air Transport, 3.5 percent from 12.0 percent; and Storage and Services Incidental to Transport (SSIT), 0.7 percent from 8.2 percent.

Water Transport, on the other hand, pulled down the growth of Transport and storage with its reversal in growth from 17.8 percent to negative 4.2 percent.

Retail Trade cushions fall of Trade

Retail trade cut the fall of Trade with its rebound to 1.0 percent growth from negative 1.0 percent recorded last year. The growth of retail trade, however, was not enough to push up the Trade sector which registered negative 0.2 percent from a growth of 1.1 percent.

On the other hand, Wholesale Trade, with the sales slow down of Petroleum products, pulled down the growth of Trade with its reversal from a modest 7.6 percent to negative 4.0 percent.

Banks restrain Finance’s drop

Challenged by the global financial meltdown, banks managed to post a growth of 2.0 percent from 15.8 percent registered last year. The growth of banks, although meager, cushioned the fall of finance from the slump of non-banks and insurance. Both subsectors performed poorly with negative 9.5 percent and negative 4.1 percent from 1.8 percent and 2.8 percent, respectively. With the banks growth, the Financial Services pegged its growth to a measly 0.2 percent from 12.2 percent.

Ownership of Dwellings thwarts fall of ODRE

Ownership of Dwellings posted almost the same growth of 2.7 percent registered the previous year thwarting the decelerated growth of 1.8 percent from 7.2 percent of Ownership of Dwellings and Real Estate (ODRE). In contrast, Real Estate declined by 0.5 percent from a growth of 21.6 percent.

Business Services tops Private Services

The Business Services subsector, which includes the Business Process Outsourcing (BPO), remained the highest contributor to the growth of Private Services sector with 7.6 percent from 8.4 percent registered the previous year. Private Services grew by 2.9 percent albeit slower than last year’s 5.7 percent.

The other contributors to the growth of Private Services were: Personal Services which include laundry services, spas, beauty parlors and other related services, grew at a slower pace of 2.4 percent from 2.7 percent; Hotels and Restaurants, 3.0 percent from 4.7 percent; Recreational Services which include the broadcasting media, 3.5 percent from 11.9 percent; and, Other Services which include waste collection/disposal and other sanitary and similar services, 1.9 percent from 3.3 percent.

Conversely, Medical & Health and Educational Services pulled down the growth of Private Services with negative 1.3 and negative 2.3 from 6.8 percent and negative 0.9 percent, respectively.

Government services posts nil growth

The long delayed rationalization of the bureaucracy continues to inflict damage as Government Services stagnated to zero growth, its worst performance since the fourth quarter of 2004.

GROSS VALUE ADDED in SERVICES
1st Quarter 2008 and 1st Quarter 2009
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

At Constant 1985 Prices

2INDUSTRY/INDUSTRY GROUP	1st Qtr 2008	1st Qtr 2009	Growth Rate (%)
SERVICE SECTOR	164,337	166,651	1.4
a. Transport., Comm., Stor.	30,601	31,860	4.1
b. Trade	50,550	50,425	-0.2
c. Finance	22,536	22,573	0.2
d. O. Dwellings & R. Estate	16,331	16,626	1.8
e. Private Services	29,241	30,089	2.9
f. Government Services	15,078	15,078	0.0

At Current Prices

INDUSTRY/INDUSTRY GROUP	1st Qtr 2008	1st Qtr 2009	Growth Rate (%)
SERVICE SECTOR	902,936	954,273	5.7
a. Transport., Comm., Stor.	121,369	126,994	4.6
b. Trade	222,373	231,237	4.0
c. Finance	104,097	111,457	7.1
d. O. Dwellings & R. Estate	99,153	105,448	6.3
e. Private Services	241,242	262,498	8.8
f. Government Services	114,701	116,639	1.7

GROSS VALUE ADDED in SERVICES
Annual 2008 and 2007
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	3,605,918	3,971,031	10.1	672,115	694,529	3.3
a. Transport., Comm., Stor.	478,389	508,828	6.4	120,698	125,814	4.2
b. Trade	981,454	1,088,198	10.9	233,863	236,705	1.2
c. Finance	361,972	404,860	11.8	81,310	83,356	2.5
d. O. Dwellings & R. Estate	373,902	412,646	10.4	63,223	66,853	5.7
e. Private Services	936,912	1,036,916	10.7	116,374	122,024	4.9
f. Government Services	473,290	519,583	9.8	56,646	59,778	5.5

Source: National Statistical Coordination Board (NSCB)

Posted 28 May 2009