NSCB - 3rd Quarter 2009 National Accounts

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

Services continues to drive the economy

Services, which comprises about 44.0 percent of total GDP, provided the biggest contribution to GDP growth with 1.99 percentage points. Trade and Finance sub sectors contributed the most to the Services growth with 1.59 percentage points and 1.37 percentage points, respectively.

Transportation, Communication and Storage declines

Transportation, Communication and Storage went down to negative 0.8 percent, the lowest since the second quarter of 1985, from 2.9 percent registered last year. The modest growth of Communication at 1.3 percent from 6.3 percent was not enough to pull up the growth of the sector.

The downturn of TCS can be attributed to the further slippage of Transport and Storage from negative 1.1 to negative 3.3 percent. Water Transport, which slid further to 28.2 percent from negative 3.7 percent and Storage & Services Incidental to Transport (SSIT), which suffered a reversal in growth from 2.5 percent to negative 11 percent pulled down the growth of the sector.

Land transport and Air transport, on the other hand, contributed positively with an with a growth of 1.5 percent from negative 2.0 percent and 8.2 percent from 2.3 percent, respectively.

Trade rebounds

Retail trade rebounded to a growth of 10.9 percent from negative 0.9 percent recorded last year. The growth caused Trade to speed up its growth by 4.5 percent from 1.3 percent registered last year.

Wholesale trade, on the other hand, suffered a reversal in growth with negative 15.0 percent from 8.8 percent. The downturn of wholesale trade can be attributed to the slow down of petroleum products trading.

Banks boosts Finance’s growth

With increased bank lending, Banks expanded its growth to 13.5 percent from 8.4 percent registered last year boosting Finance growth to 11.7 percent from 1.8 percent.

The growth of Finance was further boosted by the rebound of Non Banks and Insurance from negative 11.4 percent and negative 15.7 percent to 3.5 percent and 7.2 percent, respectively.

ODRE slumps

The accelerated growth of Ownership of Dwellings to 3.1 percent from 2.3 percent registered the previous year failed to prevent the fall of Ownership of Dwellings and Real Estate (ODRE) from 6.7 percent to negative 0.4 percent. Real Estate pulled down the growth of the sector as it slumped by 7.8 percent from a growth of 17.4 percent.

Personal Services continue to drive 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 8.7 percent from 7.3 percent recorded the previous year. Private Services grew by 4.0 percent albeit slower than last year’s 5.5 percent.

The other contributors to the growth of Private Services were: Medical and Health Services, which rebounded to 3.2 percent from negative 0.4 percent; Hotels and Restaurants, 2.8 percent from 0.9 percent; Recreational Services, which include the broadcasting media, 3.7 percent from 0.6 percent; Educational Services, 1.7 percent from negative 3.6 percent; Business Services, which include the Business Process Outsourcing (BPO), 2.0 percent from 16.9 percent; and, Other Services, which include waste collection/disposal and other sanitary and similar services, grew by 4.5 percent from 3.7 percent growth posted last year.

Government Services continue to grow

Government Services sector accelerated its growth to 6.3 percent from 5.5 percent recorded last year. Growth was mainly due to the implementation of the first tranche of the Salary Standardization Law (SSL) for government employees that became effective in July this year.

GROSS VALUE ADDED in SERVICES
3rd Quarter 2008 and 3rd Quarter 2009
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

At Current Prices

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2008	3rd Qtr 2009	Growth Rate (%)
SERVICE SECTOR	990,467	1,051,391	6.2
a. Transport., Comm., Stor.	117,211	118,170	0.8
b. Trade	275,653	284,803	3.3
c. Finance	98,587	110,540	12.1
d. O. Dwellings & R. Estate	107,935	110,074	2.0
e. Private Services	264,263	282,534	6.9
f. Government Services	126,818	145,270	14.5

At Constant 1985 Prices

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2008	3rd Qtr 2009	Growth Rate (%)
SERVICE SECTOR	168,611	175,440	4.0
a. Transport., Comm., Stor.	27,768	27,557	-0.8
b. Trade	58,989	61,668	4.5
c. Finance	19,596	21,899	11.7
d. O. Dwellings & R. Estate	17,424	17,355	-0.4
e. Private Services	30,389	31,612	4.0
f. Government Services	14,445	15,349	6.3

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: 26 November 2009.