What is the GDP of the Philippines?

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What is the GDP of the Philippines?

Mon, 07/25/2011 - 14:37

What is the GNP of the Philippines?
Ano ang GDP?

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The gross domestic product or

Mon, 07/25/2011 - 14:38

The gross domestic product or GDP of the Philippines grew 7.9 percent in the second quarter of 2010, sustaining the revised 7.8 percent expansion of the domestic economy in the first quarter, in line with the robust growth of Asian economies this year. GDP is the total value of goods and services produced within the country.

“Despite the El Niño phenomenon that scorched the agriculture sector, a synergistic confluence of factors resulted in two consecutive quarters of GDP growth of over 7.0 percent.  The peaceful national elections, improved investors’ confidence especially among local investors, the global economic recovery, increased capital expenditure of government and a low base fuelled the domestic economy to a scintillating 7.9 percent growth in the second quarter of 2010 from 1.2 percent last year,” the National Statistical Coordination Board (NSCB) said.

SocioEconomic Planning Secretary Cayetano Paderanga noted that the Philippines’ GDP grew faster in the second quarter than in Indonesia and Vietnam, but slower than in Malaysia, Thailand, and Singapore.  “We have once again shown that a high economic growth is attainable for the Philippines and all of us must work harder to maintain, if not surpass, this high economic growth achievement of almost 8 percent for the first semester of 2010,” he said.

NSCB secretary general Romulo Virola noted that the last time the economy experienced two consecutive quarters of more than 7 percent GDP growth was in the first and second quarters of 2004 (7.2 percent and 7.1 percent, respectively), also preceding a presidential election.  Together with a revised first quarter GDP growth of 7.8 percent (from 7.3 percent), the first semester growth sizzled to 7.9 percent, the highest semestral growth since 9.3 percent registered in the second semester of 1988.

The industry sector, particularly manufacturing, posted a strong 15.8 percent growth in the second quarter, rebounding from a deep contraction in 2009.  Manufacturing sustained its first quarter production in response to the improved domestic and external demand and was shored up by construction, trade, and mining and quarrying.

All sub-sectors of the industry sector expanded vigorously, led by the 12.4 percent growth in manufacturing and the 22.6 percent rise in construction activities. The 36.3 percent growth of the mining sector, mainly coming from nickel, gold and other non-metallic minerals, was driven by higher demand from a recovering global economy and the continued high metal prices in the world market.

In addition, the 13.8 percent growth in private construction activities benefited the quarrying subsector as it expanded by 20.3 percent vis-a-vis the 4.2 percent growth in the same period in 2009.

Lending support to overall growth is the utilities sub-sector, which grew by 19.1 percent on account of stable consumption and brisk pace of commercial services.

Services also posted a 6.4 percent growth while the agriculture, fishery and forestry sector contracted by 3.0 percent.  Growth in the services sector was led by trade, private services, and ownership of dwellings and real estate due to improved market sentiment, continued recovery in the global economy, and election-related spending.

On the demand side, increased consumer and government spending, increased investments in construction and durable equipment, and the second consecutive quarter of immense growth in external trade contributed to the highest quarterly growth since the second quarter of 2007.  Consumer spending grew 4.9 percent in the second quarter.

Investment in fixed capital rose 25 percent, outpacing private consumption as the major source of growth. Considering the prevailing positive business sentiment, overall investment spending continued to strengthen in the second quarter. Growth was mainly driven by the private sector since investment in durable equipment rose by a hefty 34.1 percent.

Further pick up in public construction contributed to the 22.5 percent increase in construction expenditure. More importantly, significant improvement in private construction spending was noted as total gross value added in private construction grew by 13.8 percent in the second quarter.

Remittances from overseas Filipino workers also pushed the gross national product (GNP) growth to 7.9 percent, from 4.4 percent in the second quarter of 2010.  In the first half, GNP grew by 8.2 percent, its fastest pace since 8.9 percent in the second semester of 1988.

As population reached an estimated 93.8 million, per capita GDP rebounded with a 5.9 percent growth in the second quarter while per capita GNP accelerated to 5.8 percent.  At current prices, the per capita GNP stood at PhP49,532 or US$1,082 for the first half of 2010.

“Looking forward, we still expect the agriculture sector to remain sluggish given the possibility that a transition to La Niña will materialise in the second half of 2010. However, given the stronger than expected performance of industry and services sectors and the robust investment growth in the first two quarters, it is likely that full year GDP growth in 2010 will be leaning towards the upper end of the 5 to 6 percent GDP growth target, perhaps, even higher than that,” said Secretary Cayetano.

London-based investment bank Barclays Capital Barclays Capital, in a research note, revised upward its economic growth forecast for the Philippines to 8.0 percent this year.