NSCB - 2nd Quarter 2009 National Accounts

Second Quarter 2009
Gross National Product &
Gross Domestic Product by Expenditure Shares

Investments in Fixed Capital Formation declines

In spite of the double-digit growth of construction, investments in Fixed Capital Formation in the second quarter of 2009 declined to 1.9 percent from a growth of 1.7 percent pulled down by decreased investments in Durable Equipment and Breeding Stocks.

Investments in Public Construction expands

Infrastructure investments by the government and the enhanced funds utilization rate of different government agencies managed to improve growth of Public Construction from negative 5.6 percent to 29.9 percent growth resulting to an expansion of Construction by 11.7 percent from 1.0 percent.

Decreased investments in non-residential assets, however, resulted to the contraction of Private Construction to 6.5 percent from a growth of 8.6 percent in 2008.

Investments in Durable Equipment plummets

Investments in Durable Equipment contracted to 18.9 percent from a growth of 3.7 percent a year ago as cutbacks in investments were recorded in ten (10) out of the twenty (20) types of equipment. The decline in the investments in durable equipment was the highest registered since the fourth quarter of 1998.

The biggest cuts in investments during the period were recorded in the following: Telecommunications and Sound Recording/Reproducing Equipment, negative 18.2 percent from a growth of 2.3 percent; Air Transport, negative 93.1 percent from a lower negative 18.5 percent; Other Special Industrial Machinery, negative 26.3 percent from a growth of 18.3 percent; Other Electrical Machinery and Apparatus, negative 30.9 percent from a lower negative 24.2 percent; and, Mining, Construction Machinery, negative 35.1 percent from a growth of 37.1 percent.

On the other hand, increased investments were noted in the following: Aircon & Refrigeration Equipment, accelerated to 8.5 percent from 3.4 percent; Other Miscellaneous Durable Equipment, grew by 1.6 percent from 7.1 percent; Railway Transport, rebounded to 47.0 percent negative 63.9 percent; Road Vehicles, 0.7 percent from 36.2 percent; and, Water Transport, sped up to 5.1 percent from 3.2 percent.

Investments in Breeding Stocks, Orchard Development and Afforestation
still down

Capital formation for the combined Breeding Stocks, Orchard Development and Afforestation for the second quarter of 2009 posted a slightly lower negative 5.0 percent from negative 5.1 percent as expenditures in Orchard Development and Afforestations decreased during the period.

Stocks Declines

Total withdrawal in stocks for the second quarter of 2009 amounted to P 2,766 million compared to the P 2,936 million additions in the previous year. Additions in stocks for agriculture and crude & petroleum were not enough to supplant the significant withdrawals in stocks for establishments and government.

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
2nd Quarter 2008 and 2nd Quarter 2009
AT CURRENT PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	2nd Qtr 2008	2nd Qtr 2009	Growth Rate (%)
3. Capital Formation	313,440	308,711	-1.5
A. Fixed Capital	305,786	316,727	3.6
1. Construction	178,566	213,886	19.8
2. Durable Equipment	103,948	81,112	-22.0
3. Breeding Stock & Orchard Dev't	23,272	21,729	-6.6
B. Changes in Stocks	7,654	-8,016

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
2nd Quarter 2008 and 2nd Quarter 2009
AT CONSTANT 1985 PRICES, IN MILLION PESOS

TYPE OF EXPENDITURE	2nd Qtr 2008	2nd Qtr 2009	Growth Rate (%)
3. Capital Formation	71,449	64,418	-9.8
A. Fixed Capital	68,513	67,185	-1.9
1. Construction	36,063	40,299	11.7
2. Durable Equipment	28,496	23,124	-18.9
3. Breeding Stock & Orchard Dev't	3,954	3,762	-4.9
B. Changes in Stocks	2,936	-2,766

GROSS DOMESTIC CAPITAL FORMATION BY TYPE
Annual 2008 and 2007
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	1,022,446	1,131,490	10.7	252,018	256,244	1.7
A. Fixed Capital	977,240	1,089,728	11.5	241,107	248,094	2.9
1. Construction	516,415	597,189	15.6	112,420	117,551	4.6
2. Durable Equipment	381,935	390,557	2.3	111,412	113,536	1.9
3. Breeding Stock & Orchard Dev't	78,889	101,982	29.3	17,275	17,008	-1.5
B. Changes in Stocks	45,206	41,762		10,911	8,150

Source: National Statistical Coordination Board (NSCB)

Posted: 27 August 2009.