NSCB - 2nd Quarter 2009 National Accounts

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

Services continues to drive the economy

Services, which comprises about 50.1 percent of total GDP, provided the biggest contribution to GDP growth with 1.5 percentage points. All sub sectors of the Services sector contributed positively to the decelerated growth of 3.6 percent from 4.0 percent of the sector. Spearheading the growth of the sector are Trade and Government sub sectors, which contributed 0.9 percentage point and 0.7 percentage point, respectively.

Communication foils TCS deceleration

Communication softened the downtrend of Transportation, Communication and Storage (TCS) by posting a growth of 3.3 percent from 2.6 percent last year. TCS slowed down to a modest growth of 1.7 percent, the lowest since the first quarter of 1993, from 3.9 percent.

The deceleration of TCS can be attributed to the reversal in growth posted by Transport and Storage from 5.5 percent recorded last year to negative 0.2 percent. The sub sectors that pulled down the growth of Transport and Storage were: Storage & Services Incidental to Transport (SSIT), from 7.4 percent to negative 0.2 percent, and Water Transport, from 3.7 percent to negative 6.5.

Air transport, on the other hand, contributed positively with an accelerated growth of 4.5 percent from 3.9 percent posted last year while, Land Transport, registered a measly 0.5 percent from 5.5 percent growth.

Trade accelerates

Retail trade accelerated to 8.8 percent growth from 1.9 percent recorded last year. The growth caused Trade to upped its growth by 3.0 percent from 2.8 percent registered last year.

Wholesale trade, on the other hand, suffered a reversal in growth with negative 15.1 percent, the lowest since the third quarter of 1991, from 5.7 percent. The downturn of wholesale trade can be attributed to the slow down of petroleum products trading.

Banks improve Finance’s growth

With increased deposits and outstanding loans, Banks expanded its growth to 5.3 percent from 4.2 percent registered last year boosting Finance growth to 1.8 percent from1.0 percent. The growth of Banks however was pulled down by the lackluster performance of Insurance and Non Banks which posted a lower negative 2.6 percent from negative 6.7 percent and negative 12.1 percent from negative 5.1, respectively.

Ownership of Dwellings steers growth of ODRE

Ownership of Dwellings expanded its growth to 3.1 percent from 2.2 percent registered the previous year thwarting the decelerated growth of 3.4 percent from 7.5 percent of Ownership of Dwellings and Real Estate (ODRE). In contrast, Real Estate posted a slower growth of 4.1 percent from 22.7 percent.

Personal Services tops Private Services

The Personal Services sub sector, which include laundry services, spas, beauty parlors and other related services, was the highest contributor to growth of Private Services sector with 5.3 percent from 4.9 percent recorded the previous year. Private Services grew by 2.8 percent albeit slower than last year’s 6.0 percent.

The other contributors to the growth of Private Services were: Recreational Services, which include the broadcasting media, with 6.7 percent from 10.4 percent; Medical Services, 3.0 percent from 2.5 percent; Other Services, which include waste collection/disposal and other sanitary and similar services, 1.9 percent from 2.9 percent; Hotels and Restaurants, 1.9 percent from 2.8 percent; and, Business Services, which include the Business Process Outsourcing (BPO), 0.7 percent from 12.1 percent.

On the contrary, Educational Services pulled down the growth of Private services with negative 1.6 percent from negative 2.7 percent.

Government Services accelerates

Government Services sector accelerated its growth to 7.7 percent from 5.3 percent recorded last year. Growth was mainly due to recruitment of additional personnel and the salary increase implemented in July last year.

GROSS VALUE ADDED in SERVICES
2nd Quarter 2008 and 2nd Quarter 2009
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

At Constant 1985 Prices

2INDUSTRY/INDUSTRY GROUP	2nd Qtr 2008	2nd Qtr 2009	Growth Rate (%)
SERVICE SECTOR	174,345	179,679	3.1
a. Transport., Comm., Stor.	32,590	33,156	1.7
b. Trade	57,337	59,070	3.0
c. Finance	21,147	21,526	1.8
d. O. Dwellings & R. Estate	16,894	17,463	3.4
e. Private Services	30,616	31,482	2.8
f. Government Services	15,762	16,982	7.7

At Current Prices

INDUSTRY/INDUSTRY GROUP	2nd Qtr 2008	2nd Qtr 2009	Growth Rate (%)
SERVICE SECTOR	995,260	1,053,744	5.9
a. Transport., Comm., Stor.	132,920	135,266	1.8
b. Trade	266,443	277,416	4.1
c. Finance	102,743	107,907	5.0
d. O. Dwellings & R. Estate	103,565	109,968	6.2
e. Private Services	257,740	274,261	6.4
f. Government Services	131,850	148,926	13.0

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: 27 August 2009.