National Accounts of the Philippine
Fourth Quarter 2010
Philippine economy posts 7.1 percent GDP growth
Despite the El Niño and the diminished government spending during the second semester, the domestic economy sizzled to its highest annual GDP growth in the post Marcos era of 7.3 percent in 2010 from 1.1 percent in 2009. The global economic recovery which resulted in record growth rates of foreign trade and election related stimuli that combined for a record first semester growth, followed by the peaceful conduct of the national elections and the renewed trust in government contributed to an economic performance in 2010 that well surpassed the government’s target of 5.0 percent to 6.0 percent. Industry and services sectors expanded strongly in the last quarter of 2010 while Agriculture recovered after four consecutive quarters of decline due to El Niño, pushing GDP to grow by 7.1 percent in Q4.
Industry accelerated to 8.3 percent from 3.8 percent, almost sustaining its third quarter growth. Services likewise accelerated, growing by 6.9 percent from 3.1 percent. And AFF, after being battered for four consecutive quarters by abnormal weather conditions, rebounded by 5.4 percent from a decline of 2.9 percent.
On the Demand side, growth was led by investment in Durable Equipment, net exports and consumer spending.
For the fourth quarter, the continuing, though much decelerated demand for the services of our OFW’s caused NFIA to grow by 3.8 percent from 19.5 percent last year, pushing GNP growth to 6.7 percent from last year’s 4.1 percent.
The seasonally adjusted estimates show a surging Philippine economy as GDP jumped by 3.0 percent from a decline of 0.8 percent in the previous quarter while the seasonally adjusted GNP accelerated to 2.9 percent from a 0.2 percent growth in the third quarter.
The AFF sector grew by 4.2 percent from a 1.0 percent growth in the previous quarter largely due to the growth in Palay and corn. On the other hand, Industry rebounded to a 6.7 percent growth from a 5.9 percent decline in the previous quarter due to the expansion of Manufacturing and Mining & Quarrying. Services sector, however, decelerated to 0.3 percent from 2.0 percent caused partly by two consecutive quarters of decline in Government Services.
Per capita GDP in the fourth quarter rose by 5.0 percent from 0.2 percent in the same previous last year. Per capita GNP and per capita PCE likewise posted huge growths of 4.6 percent and 4.9 percent from 2.1 percent and 3.0 percent, respectively.
Posted: 31 January 2011.
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