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23 National Accounts and Balance of Payments

Introduction

ational accounts which measures the economic performance of the country, broadly present the production, income and expenditure activities of the economic actors (corporations, government, households) in the economy.

There are a number of aggregate measures in the national accounts, most notably gross domestic product or GDP – which is the most widely used measure of aggregate economic activity in a period – disposable income, saving and investment. These aggregate measures and their development over time are generally of strongest interest to economic policymakers.

Economic transaction of the country is summarized from the system of national accounts, with its coherent and consistent framework. Hence, it captures and monitors changes in the performance of the Philippine economy.

Much of the reliability and utility of the Philippine System of National Accounts still remain with the data inputs, the translation of the economic transaction into the estimation methodologies, and the interpretation of the accounts by users. It is therefore recognized that, to maintain a system of national accounts which is sensitive to changes in the economy and to the needs of users, a continuous interaction among data producers, national accounts statisticians, and various users is needed.

23.1 National Accounts Estimation in the Philippines The Joint Philippine-American Finance Commission led the first national

accounts estimation in 1947 when it prepared national income estimates for the period 1938 to 1946 in order to assess the country’s rehabilitation. Three years after, the Department of Economic Research of the then Central Bank of the Philippines (CBP) assumed national income estimation and presented a series for the period 1948 to 1950.

Since then until 1956, the CBP conducted a yearly estimation and maintained the national income series. In 1957, however, the sole responsibility for national estimation was handed over to the Office of the Statistical Coordination and Standards (OSCAS) of the National Economic Council.

When the government was reorganized in 1973, national economic planning was vested in the National Economic and Development Authority (NEDA). The preparation of the national accounts had since become the responsibility of the National Accounts Staff (now the Economic and Social Statistics Office) of the NEDA Statistical Coordination Office (now the National Statistical Coordination Board, or NSCB).

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National Accounts and Balance of Payments

The 1968 revision. An overall revision of the National Accounts series covering the period 1946 to 1967 was released in 1968. It was in this revision that an independent check on the GNP was first attempted. The method used was comparison of the GNP obtained through the traditional value-added approach with the estimates from the expenditure approach.

In 1970, the OSCAS prepared a manual on the methodology and on the explicit assumptions used in preparing the national income estimates. This manual then served as the basic working document of a three-day seminar-workshop on National Accounts methodology held in 1971 and attended by statisticians and economists. Two sets of recommendations and suggestions for improving the estimation techniques and data collection system were drafted. Consequently, the NEDA improved and widened the statistical machinery of the government.

With the aid of the Statistical Advisory Board, the NEDA created several interagency committees assessing the activities of different statistical agencies. One of these was the Interagency Committee on the Philippine System of National Accounts (PSNA) whose primary purpose was to review the framework of the accounts and recommend changes that will make the accounts comply development planning requirements. The 1976 revision. One of the first activities of the Committee was to hold a second workshop on national accounts methodology in 1976. This led to the 1976 overall revision of the national accounts series. Foremost revisions included in the new series were the following:

1. Shifting of the base period for estimates at constant prices from 1967 to 1972, in compliance with one of NEDA's resolutions in 1976 requiring all current statistical series to be rebased to calendar year 1972; and,

2. Alignment of the conceptual framework with the revised United Nations System of National Accounts (UNSNA), which mainly integrates the various accounts into a coherent set of economic statistics.

The 1990 revision. Another revision of the PSNA was found imperative as various transactions in the economy grew increasingly complex and as users began demanding new information from the PSNA. Thus, a program revising national accounts was proposed in 1985 following a consensus to shift the base year of the national accounts and price statistics that year.

Several years thereafter, the Economic and Social Statistics Office of the NSCB rebased the annual compilation of the accounts from 1980 to 1987. The revised and rebased series, which was finally presented in September 1990, resulted from the efforts to develop and improve data and estimation techniques after reflecting the 1968 UNSNA recommendations, and to some extent, the preliminary recommendations of the 1993 UNSNA.

The new series likewise features additional accounts, such as the consolidated accounts of the nation, GDP by factor shares, and institutional accounts, including those of government and private corporations, and factor shares by institution.

Specifically, the series includes four consolidated accounts, namely, gross domestic products and expenditures at current prices, national disposable income and its appropriation at current prices, gross accumulation at current prices, and external

NSO 2010 Philippine Yearbook

transactions at current prices. Included also are four income and outlay accounts, namely, private corporations at current prices, government corporations at current prices, general government at current prices, and households and unincorporated enterprises at current prices.

Aside from the shift to a more recent base year of 1985, other major changes in the revised PSNA included definitional and conceptual changes, and improvement of methodologies using new sources of data.

23.2 The Philippine System of National Accounts (PSNA) The PSNA provides a conceptual framework for the systematic and integrated

recording of the transactions of the economy. The concepts and classifications of the accounting framework developed by the United Nations (UN) served as guide to the PSNA since it started its initial compilation.

Transactors of the Economy

The division of the economy into sectors is a primary feature of the national

accounting system. This sector’s classification of the transactors in the economy depends on the manner in which these transactors participate in the production and use of goods and services. Sectors are so defined that each one constitutes a group of entities sharing general characteristics affecting economic behavior.

There are various ways the economy may be divided into sectors. Choosing the best way depends on the purpose for which the classification is to be used. To determine the transactors that enter into consumption and capital accumulation flow, four institutional sectors of the economy were identified, to wit:

The household sector. This sector includes all individuals in their capacity as consumers. Persons, in their role as producers, are excluded from this sector. Following international recommendations, nonprofit institutions serving the households, such as churches, unions, private clubs, charitable institutions, nonprofit schools and hospitals, and other similar organizations, are included in this sector.

The enterprises sector. This sector includes all organizations primarily engaged in producing goods and services for profit. It includes single proprietorships, private corporations, partnerships, and nonprofit institutions serving business. It also includes individuals who undertake productive activities, such as farmers, independent practitioners, and homeowners. It also covers government establishments selling goods and services at prices more or less approximating their costs of production.

The general government sector. This sector refers to all levels of state organization, national and local. In discharging the functions of promoting the general welfare and national protection, the government produces services of value to the people. These services are valued at the amount of salaries and wages paid to government workers. The government purchases goods and services, moreover, from


enterprises and from abroad. Such flows of income and product, whether from ordinary budgets or special appropriations, are included in this sector.

Sometimes there are cases when it is difficult to classify a government activity either as a service or as a commercial activity. Public authorities, which are financially integrated to the general government and hence obtain their money from, and turn their profits over to the general government, are classified under the government sector. Public corporations, on the other hand, which are financially independent of the government and therefore maintain their own profits or borrow funds, are excluded from this sector. Public authorities embrace such agencies as the Philippine Postal Corporation and Telecommunications Office, while public corporations include the Philippine National Bank, Government Service Insurance System (GSIS), and similar agencies.

The rest of the world sector. This is not a sector on the domestic economy but is nevertheless considered to achieve a complete analysis of the flow of those goods and services produced locally and then marketed abroad. The rest of the world sector also reveals the local economy's expenditures on foreign goods and services and foreign countries' patronage of Philippine goods and services.

Aside from the above institutional sectoring, the transactors may also be classified according to the industrial sector from which production originates.

Trying a different classification of the economy is necessary to trace final output back to the industrial sector it originated from. The accepted yardstick under this classification, the Philippine Standard Industrial Classification, has been adopted as basis for classifying the nation’s output by industrial origin. This consists of eight principal industrial sectors cascading to 70 subsectors at the two-digit level of classification. These industrial sectors include: (1) agriculture, fishery and forestry; (2) mining and quarrying; (3) manufacturing; (4) construction; (5) electricity, gas and water; (6) transportation, communication and storage; (7) trade; and, (8) services. For purposes of classification consistent with planning requirements, however, these eight sectors have been aggregated into three main sectors, namely, agriculture, fishery, and forestry; industry; and services. Measurement of the Gross Domestic Product The Expenditure Approach

This approach of measuring economic performance is a consolidated account of total expenditures consumed by various economic transactors for a particular period of time. It shows the purchases of the institutional sectors, namely: personal consumption expenditures (PCE), general government consumption expenditures (GGCE), gross domestic capital formation (GDCF), and net exports of goods and services. The sum of these four components is called gross domestic product (GDP). When the net factor income from the rest of the world is added to the GDP, the result is equal to the gross national product (GNP).

The transactions that make up the gross national product using the expenditure approach are described as follows:


Compensation of employees. This includes all wages, salaries, and other remuneration, in cash or in kind, of public and private employees and wage earners before any social security contributions are taken out. GSIS retirement and insurance premiums are deducted from government employees, and Social Security System (SSS) contributions are reserved for private employees.

Income in kind refers collectively to food, clothing, shelter, and similar additional benefits provided by employers. Commissions, tips, bonuses, and related fees are included, while reimbursements of business expense such as transportation and representation allowances are not. Included also are the government’s share of GSIS premiums and private employer’s share of SSS contributions paid on behalf of the employees. Veterans’ pensions and similar receipts from the government are excluded and treated as transfer payments. Entrepreneurial and property income of persons. This covers all income before payment of direct taxes accruing to households and nonprofit institutions as remuneration of both labor and capital provided by them as entrepreneurs in connection with their own business and as owners of land and financial assets. It consists of income earned from farming activities, income from independent professional practices, net income from sole proprietorships and partnerships, net rents received, and dividends received from corporations and cooperatives. General government income from property and entrepreneurship. This includes receipts by general government from rent, interests, and dividends accruing to it from ownership of land and buildings or financial assets. Included also are earnings of government corporations that are financially integrated with general government. Profits of state monopolies, however, are treated as indirect taxes and their losses as subsidies. Corporate income. This consists of the income earned by private and government corporations and cooperatives before taxes are paid and dividends are distributed. Government corporations included here are those that are financially independent of general government as they have full control of their funds through a board of directors.

Corporate income has two components: corporate tax of the direct taxes on profits, capital, or net worth of the above institutions, and corporate savings or their undistributed earnings. Indirect taxes net of subsidies. Indirect taxes are those that are levied on the production, sale, purchase, or use of goods and services which producers charge to expenses of production. Examples are excise taxes, import duties, sales taxes, business licenses, and real property taxes.

Subsidies consist mostly of government production and consumption subsidies granted to stabilize prices. Examples are subsidies granted to the National Food Authority, Philippine National Oil Company, and the Philippine Postal Corporation. Capital consumption allowance. This represents the provision made for normal wear and tear, accidental damage to and foreseen obsolescence of all fixed capital. This allowance is estimated on the basis of replacement cost. No depreciation charge is


made for government construction projects such as highways, roads, and canals because of practical difficulties. Personal consumption expenditure. This records the value of final expenditure of households and private nonprofit institutions on current goods and services less net sales of similar goods and services (mainly second-hand transactions), plus the value of gifts in kind received from the rest of the world. Since the flow refers to expenditures of local residents, purchases by residents abroad, except those chargeable to business expense, should be included. Purchases made by visiting nonresidents are, on the contrary, excluded. General government consumption expenditure on goods and services. This includes compensation of employees and net purchases of goods and services less sales of goods and services. Purchases by general government are the following:

1. Purchases for military purposes, which include expenditures on arms, ammunition, aircraft, road vehicles, ships, and new buildings for military service; and,

2. Purchases for civil, administrative, or governing purposes, which include the cost of operating services such as schools, hospitals, social services, police force, roads, and other transport installations, including gross rent of buildings for government use. Rental expenditures are also imputed on buildings owned and occupied by the government, except historical buildings, museums, and the like.

In determining the scope of general government consumption expenditures, it

is necessary to decide which purchases are to be treated as consumption expenditures and distinct from capital formation. In connection with this, expenditures for defense purposes, excluding civil defense, are treated as consumption expenditures, whereas, all expenditures on capital formation for civil purposes are included in gross domestic capital formation.

Gross domestic capital formation. This refers to the gross value of that part of a country’s output and imports that are not consumed or exported during the accounting period but are set aside as addition to its stock of capital goods.

Capital formation is in the form of fixed capital formation and changes in stocks.

Fixed capital formation includes the value of the purchases and own-account

construction of fixed assets, such as machinery, equipment, plants, buildings, and other construction work by enterprises, households, private nonprofit institutions, and general government for civil defense.

Gross fixed capital formation includes—besides the purchase price of capital

goods—all expenses directly related to the acquisition of these goods, such as those for transportation and fees for engineering, architectural, legal, and other services.

Stock is defined as goods produced or imported but not put to final use during

the accounting period, that is, consumed, exported, or purchased for fixed capital


formation. Increase in stocks refers to the value of the physical change in raw materials, work in progress (other than work in progress of the building and heavy construction industries, which is included in fixed capital formation), and finished goods held by enterprises and in government stockpiles.

Net exports of goods and services. This results from estimating expenditures on the GDP. As such, it is not practicable to eliminate content from each kind of final expenditures. The statistics from which the estimated consumption and accumulation are derived relate to the total value of the final goods and services concerned, including their import content. Thus, expenditure on the GDP is equal to the total expenditure by residents on all final goods and services (exports less imports).

Net factor income from the rest of the world. This consists of net income receipts from the rest of the world, such as investment income, including interests, dividends, and branch profits; earnings of residents working abroad; and other factor incomes of normal residents. It includes investment income of foreigners earned locally and of residents on their investments abroad. This item represents the difference between the factor income of residents from abroad and the income accruing to foreign suppliers of factor services.

Statistical discrepancy. This is the difference between the estimates of total national output from the income side of the account on the one hand, and the expenditure side on the other. It is entered as the balancing item in this account.

The Production Approach

This method utilizes the combined gross value added (GVA) of all resident producer units, adjusted for import duties and non-deductible value added tax (VAT) or similar taxes on products depending upon the valuation of outputs, inputs and imports.

GVA is the difference between the gross value of the goods and services produced during the period and recorded at the moment they are produced regardless of whether there is change of ownership (gross output) and the value of goods and services-including raw materials and supplies, containers and packing materials, fuel and electricity and business and other services used up in the production process during the accounting period (intermediate inputs).

GVA is estimated for each of the productive sectors of the economy, to wit: agriculture, fishery and forestry; mining and quarrying; manufacturing; construction; electricity; transportation, storage and communication; wholesale and retail trade; finance; ownership of dwellings and real estate; and other services (government and private). 23.3 Macroeconomic Performance in Year 2010

The sound macroeconomic policies, the sharp recovery exports, strong external payments position, and upbeat confidence in the new government enabled the


Philippine economy to emerge from the global economic turmoil with a firm performance in 2010.

The real gross domestic product (GDP) at constant 2000 prices accelerated by 7.6 percent in 2010, which was beyond the government’s official growth target of 5.0-6.0 percent for the year. Based on the records, this was the highest growth rate in 34 years. Economic expansion was led by the services and industry sectors while exports and investments were the main growth drivers on the demand side.

GDP grew by 4.0 percent in the fourth quarter of 2010, bringing the full year GDP growth to 7.6 percent from 1.1 percent in 2009. Agriculture, hunting, forestry and fishery sector may have less contribution as they slightly glide down this year, the industry and services sectors however, stood in a more productive position. The double digit growth in industry sector as well as financial intermediation services sector contributed to the domestic economic growth of the country. (Refer to Table 23.2)

On the demand side, growth was boosted by exports, which grew by 24.7 percent in 2010 after contracting by 13.4 percent in 2009 as global demand for Philippine products regained lost ground. Capital formation likewise exhibited a solid performance as it yielded an increase of 31.6 percent from a modest 4.1 percent increase in 2009. Household and government final consumption in 2010, on the other hand, generated growth rate of 3.4 percent and 4 percent, respectively. (Refer to Table 23.1)

On the production side, the services sector, which constituted 55.8 percent of the total GDP rose by 7.2 percent in 2010. This translated to a 6.1 percentage point contribution to the 1.1 percent GDP growth in 2009. Financial intermediation led the growth of the services sector posting a 10.1 percent growth rate while trade and other services have both recorded an 8 percent increase. Real estate, renting, and business activities also had 7.5 percent notable expansions. (See table 23.2)

Total exports of goods amounting to PhP2.4 trillion dramatically bounced back by 24.7 percent increase from a depreciation of 13.4 percent in 2009. Largely was contributed by electronic components producing PhP1.7 trillion or 36.7 percent improvement as compared to PhP1.2 trillion last year. Although most of its sub sectors have slowed down particularly automotive electronics which declined for as low as 32.6 percent, electronic components was able to rebound with components/devices and three others having a combined output of more than PhP1.6 trillion. Principal agricultural products exported 2.1 percent lower amounting to PhP41.7 billion in 2010. The decrease were attributed to the sugar (-64.4%), desiccated coconut (-32.6%), pineapple and pineapple products (16.6), and bananas (-2.1%) accumulated to about PhP5.1 billion. Other sectors that have exported more in 2010 were articles of apparel and clothing accessories, basketworks, cathodes, ignition wiring sets, and metal components in a total of PhP139.9 billion. (See Table 23.1a)

Meanwhile, total merchandise imports in 2010 increased by 23.4 percent from a 1.8 percent negative growth last year or PhP1.89 trillion to PhP2.33 trillion. Electronics, which is the major imported goods have a total of PhP864.57 billion comprising of about 51.7 percent of the PhP1.67 trillion principal import goods or 37.1 percent of the total imports of goods. There were about 14.4 percent amounting to PhP335.31 billion still on consignment while other imported products accounted the remaining 13.9 percent of the total imports. Principal merchandise is listed in Table 23.1b.


At current prices, total imports of goods valued at PhP2.64 trillion exceeded total exports of goods (PhP2.66 trillion) in 2010. This brought about PhP375.88 billion trade surplus. (Refer to Table 23.1)

This concludes that the Philippine economy in 2010 continued to keep pace with the population growth as per capita GDP grew by -0.9 percent and per capita GNP by 2.0 percent. Personal consumption expenditure (PCE), on the other hand, grew by 2.1 percent. (See Table 23.18)

Gross value added (GVA) by Sector

AGRICULTURE, HUNTING, FORESTRY, AND FISHERY. The agriculture, hunting, forestry and fishery sector contributed 11.6 percent of the total GDP in 2010. Meanwhile, GVA at current prices for the combined agriculture, hunting, forestry, and fishery sector stood at PhP1.11 trillion in 2010 from PhP1.05 trillion in 2009. Among the contributors in agriculture that showed positive performance were palay (PhP221.24 billion); poultry (PhP101.85 billion); banana (PhP86.89 billion); coconut, including copra (PhP76.86 billion); sugarcane (PhP27.35 billion); rubber (PhP22.89 billion) and cassava (PhP12.10 billion). Others suffered a slight drop off particularly other crops which slid down to PhP59.79 billion from PhP68.20 billion or 12.3 percent decrease. (See Table 23.3)

Industry. The industry sector, which accounted for 32.6 percent of the total GDP in 2010, covers the subsectors of mining and quarrying; manufacturing; construction; electricity, gas and water. 1. MINING AND QUARRYING. GVA in real terms for mining and quarrying at constant

prices recorded a growth of 21.5 percent or 19.6 percentage points higher than the 1.9 percent reported in 2008. Among the industry group, other metallic mining showed a strong performance posting a growth rate of more than 300 percent from PhP35 million to PhP154 million. Likewise, copper mining, chromium mining, and crude oil recorded a growth of 94.3 percent, 33.3 percent, and 26.5 percent, respectively. (See Table 23.4)

2. MANUFACTURING. At constant prices, manufacturing able to record a growth rate of 11.2 percent contributing a GVA of PhP1.32 trillion in 2010. Food manufactures continue to boost up the manufacturing industry chopping 42.5 percent of the total GVA in 2010. It stood at PhP820.66 billion managing to add more 7.3 percent from its last year’s PhP765.16 billion. Radio, television and communication equipment and apparatus meanwhile, sliced 15.2 percent from the total with a soundly 25.6 percent progress from PhP234.07 billion last year. Petroleum and other fuel products remained the third largest contributors with PhP134.60 billion but have the highest growth rate of 38.1 percent as against 2009. All other remaining sub sectors have shown improvement except tobacco manufactures which drastically dropped 43.6 percent or PhP5.9 billion from its PhP13.48 billion in 2009. Office, accounting and computing machinery and wearing apparel also slightly fall short to about 0.8 percent and 0.3 percent, respectively. (See Table 23.5 for other details)

3. CONSTRUCTION. GVA at constant prices in construction had a growth rate of 14.3 percent in 2010. Private construction generated a growth rate of 24.1 percent from


PhP346.41 billion to PhP279.13 billion while public construction yielded PhP144.25 billion from PhP138.58 billion last year or a 4.1 percent improved performance. (See Table 23.6)

4. ELECTRICITY, GAS AND WATER (EGW). The electricity remained to be the top grosser with 86.3 percent of the total GVA at constant prices. In 2010, the electricity sector generated PhP175.47 billion or a 10.9 percent increase from last year’s PhP158.16 billion. Water and stream likewise had a combined output of PhP27.80 billion with an increase of 3.3 percent and 4.8 percent, respectively. (See Table 23.7.)

Services. The services sector, which accounted for 55.8 percent of the total GDP in 2010, covers the subsectors of transportation, storage, and communication; trade and repair of motor vehicles, motorcycles, personal and household goods; financial intermediation; real estate, renting and business activities; and other services.

1. TRANSPORTATION, COMMUNICATION, AND STORAGE (TCS). TCS GVA at current prices

showed positive growth of 4.5 percent in 2010 valuing at PhP586.20 billion. Air transport, a sub sector of the transport and storage registered the highest increase of 27.4 percent from PhP36.26 billion last year to PhP46.19 billion. Storage and services incidental to transport also increased by 10.5 percent with a value of PhP56.34 billion. Land had PhP182.96 billion posting a 2.9 percent increase, and air contributed PhP46.19 billion with 6.8 percent growth rate. These translate to PhP304.43 billion accumulated by transport and storage or 7.6 percent increase as compared to 2009 value. Communication sector, meanwhile shared PhP281.77 billion of the total. TCS GVA at constant prices on the other hand, reached PhP427.77 billion in 2010, a slight growth rate of about 1.0 percent from last year’s PhP423.40 billion. For the transport and storage sub sector, land transport got the highest value of PhP89.33 billion but not enough to take over the PhP92.84 billion posted last year. Water transport recorded the highest increase of 11.6 percent with a value of PhP12.34 billion while air transport had PhP17.98 billion having a growth rate of 9.5 percent. Likewise, storage and services incidental to transport posted an increase of 8.4 percent from its value of PhP31.71 billion to PhP34.44 billion in 2010. Meanwhile, communication slightly went up by 0.8 percent at PhP273.68 billion. (See Table 23.8)

2. TRADE AND REPAIR OF MOTOR VEHICLES, MOTORCYCLES, PERSONAL AND HOUSEHOLD GOODS at current prices posted a GVA improvement at P1.56 trillion in 2010, an increase by 15 percent from the previous year’s PhP1.36 trillion. Retail industry comprised 76.7 percent of the total GVA, while wholesale, 20.3 percent. The remaining 3 percent went to maintenance and repair of motor vehicles, motorcycles, personal and household goods. Similarly, the GVA at constant prices posted an 8.4 percent increase compared to last year’s PhP875.62 billion. (See Table 23.9)

3. FINANCIAL INTERMEDIATION. Financial services sub sector covers banks, non-banks and insurance, its annual GVA growth increased by 14.3 percent at current while 10.1 percent at constant prices. The banking sector pushed up to 15.9 percent, while nonbank financial intermediation and insurance had 13.1 percent and 14 percent increase, respectively. Activities auxiliary to financial intermediation also


posted a 9.1 percent increase. The 2010 GVA at current prices for financial intermediation stood at PhP622.40 billion. (See Table 23.10)

4. REAL ESTATE, RENTING AND BUSINESS ACTIVITIES. Its GVA manifested a positive growth rate of 10.7 percent in 2010 amounting to PhP979.13 billion compared to PhP884.13 billion in 2009. Real estate sub sector posted the highest increase of 21.3 percent amounting to PhP178.92 billion. Other sectors such as renting and other business activities yielded PhP428.22 billion or 13.3 percent increase, and ownership of dwellings had PHP371.99 billion at 3.7 growth rate. (See Table 23.11)

5. OTHER SERVICES. GVA generated by other services climbed to PhP838.66 billion in 2010 from PhP758.31 billion last year. Education, which comprised 42.4 percent of the total, posted an increase of 3.8 percent valued at PhP355.21 billion at current prices. Recreational, cultural and sporting activities contributed PhP159.58 billion projecting a notable 32.2 percent growth rate from last year. Other sub sector such as hotels and restaurants, health and social work sewage and refuse disposal sanitation and similar activities, and other service activities had a combined PhP323.88 billion share or 38.6 percent of the total. The total GVA of other services at constant prices reflected an 8.4 percent growth rate yielding PhP584.10 billion in 2010. (See Table 23.12)

23.4 The Flow of Funds Account

The flow of funds (FOF) account is a statement of capital accounts for the national economy. It shows investments whether spent, lent, or hoarded under the “Use” columns, and the means of financing these investments, whether earned or borrowed under the “Source” columns. The accounts are primarily designed to show the linkages among the many financial activities that generate income.

The entire economy is divided into institutional groupings. Each sector’s FOF account records the sector’s purchases and sales of goods and services.

In any one row of the matrix, the sum of all uses of funds equals the sum of all sources of funds in that row inasmuch as the use of funds (or payments) of the sector is the source of fund (or receipt) of another sector. The sum of financial surpluses and deficits of all sectors of the economy, including the rest of the world, should be zero since a sector’s lending is exactly matched by another sector’s borrowing, and vice-versa. Movements in the account's financial uses may be greater or less than its financial sources.

For the economy as a whole, gross savings are equal to the sum of real investment and net lending to (or borrowing from) the rest of the world. Net borrowing from the rest of the world is commonly referred to as investment-savings gap. The Structure of the Flow of Funds System

In the Philippine FOF system of accounts, the economy is divided into three major sectors, namely: financial, nonfinancial, and the rest of the world. Both the financial and nonfinancial sectors are classified further into private and government.


In general, each sector or subsector is composed of deposit money banks, other banks, insurance companies, lending investors, investment houses, securities dealers or brokers, fund managers, investment companies, pawnshops, nonstock savings and loan associations, and mutual building and loan associations.

The government financial sector includes the country’s monetary authorities such as the Bangko Sentral ng Pilipinas (BSP) and the National Treasury, and the specialized government banks such as the Development Bank of the Philippines, Philippine Amanah Bank, the Land Bank of the Philippines, social security agencies and other nonbank financial intermediaries.

The nonfinancial sector includes the three branches of the central government, all agencies and instruments, local government, and government corporations.

On the other hand, the rest of the world sector includes nonresidents and international organizations, such as the IMF, World Bank, and the Asian Development Bank. Transaction Categories

Transaction accounts in the FOF system are arranged to cover three major groupings. These are: (1) current nonfinancial; (2) capital nonfinancial; and, (3) financial, which are summarized as gross savings, real investments, and financial investments, respectively.

Gross savings is the net income (the excess of income and transfers received over current expenditures) plus capital consumption allowances and other adjustments, such as allowances for doubtful accounts and valuation adjustments.

Real investments refer to consumer durable, real estate or other fixed assets, and inventory within a specified period.

Net financial investment is the difference between total financial uses (acquisition of financial assets) and total financial sources (incurrence of financial liabilities). It measures net funds advanced to or borrowed from other sources. 23.5 Balance of Payments

The Balance of Payments (BOP) is a summary of the economic transactions

(current and capital and financial account) of a country with the rest the world, for a specific period. It serves as an accounting statement on the economic dealings between residents of the country and non-residents.

The overall BOP position is equal to the sum of the current, capital and financial and other BOP accounts. A surplus arises when inflows are greater than the outflows while a deficit occurs when outflows surpass inflows. A surplus in the overall balance of payments is reflected as an improvement in the Net International Reserves (NIR) implying that the economy's international receipts exceeded payments. On the other hand, a deficit is reflected as deterioration of the country's NIR implying that international receipts were exceeded by payments.

The BOP position under the 5th Edition of the Balance of Payments Manual (BPM5) adopted by the BSP starting January 2000, results from the change in NIR that


is due mainly to economic transactions, excluding the effects of revaluation of reserve assets and reserve related liabilities, gold monetization and Special Drawing Rights (SDRs) allocation. Before the implementation of the BPM5 format, BOP position considered all factors that contributed to the change in the NIR. The BOP has two components discussed below. Current account. Consists of the aggregate balance of goods, services, income and current transfers, this account measures the net transfer of real resources between the domestic economy and the rest of the world. This account includes: Trade-in-Goods consists of transactions on general merchandise, goods for processing, goods procured in ports by carriers, and nonmonetary gold, Trade-in-Services that covers transactions in transportation (freight and passenger), travel, communication and other business and recreational services, among others, Income account refers to the receipt of or payments for the use of labor and financial capital. Its categories are compensation of employees covers overseas Filipino workers’ (OFWs) remittances while investment income consists of profits, dividends, and interest payments.

Lastly, the Current transfers refer to free provisions of cash, goods or services that are intended for consumption by the recipient. These are largely grants, donations and gifts including remittances from migrant workers who have become residents of the country of their deployment. Also included are membership fees to international organizations and some forms of taxes. Capital and financial account – is divided into main categories: the capital account and the financial account. The capital account consists largely of capital transfers while the financial account covers transactions associated with investments and debt (i.e., direct, portfolio and other investments).

Capital transfers, like current transfers, may be in cash or in kind. However,

unlike current transfers, which are intended for consumption of the recipient, capital transfers are intended for the acquisition or disposition of fixed assets.

Direct Investments are transactions in equity capital and other financial instruments aimed at obtaining permanent interest in enterprises. Operationally, direct investment in an enterprise is indicated by ownership of at least 10 percent of equity shares.

Other Investments refer to transactions pertaining to trade credits, loans, currency and deposits.

Beginning January 2000, the BSP has adopted the new concept in BOP compilation based on the 5th Edition of the Balance of Payments Manual (BPM5) of the International Monetary Fund (IMF). For comparability and assessment of the 2000 performance vis-à-vis 1999, the 1999 BOP was reconstructed in accordance with the new concept. The changes introduced in the BPM5 format are as follows:

Format. The use of credit and debit was introduced throughout the accounts to denote direction of flows. Transactions in assets were separately presented from the transactions in liabilities in the financial account. Transactions in reserves and reserve-


related liabilities were presented to integrate below-the-line transactions, which determine the overall BOP position.

Classification. The Income account was introduced to show the net earnings from the use of the factors of production-land, labor and financial capital, separate from the Services account. The account 'Transfers' was broken down into Current Transfers and Capital Transfers. Financial transactions were also grouped into three major categories: Direct Investment (intra-company loans), Portfolio Investment (bonds), and Other Investment (loans). The first-level classification was also implemented according to resident institutions, that is, monetary authorities, general government, banks and others.

Conceptual coverage. For the Current Account, trade in goods did not conform to the published foreign trade statistics of the National Statistics Office (NSO) as only shipped goods that involve a change in ownership were considered in the BOP data. For financial account, entries are confined to transactions, that is, the change in assets and liabilities excluding the effect of revaluation. Aside from revaluation, SDR allocation and gold monetization/demonetization are likewise excluded.

Relations to National Income Accounts

The balance of merchandise trade, which is exports less imports, and non-

merchandise trade in the current account of the BOP may be shown in the GDP account and the rest of the world account. This balance is also reflected in the transfers from the rest of the world and compensation of employees in the national disposable income account, as well as the rest of the world account, and capital transfers from the rest of the world into capital finance account.

23.6 The Philippine Balance of Payments in 2010

The 2010 BOP surplus posted an increase of US$7.98 billion from US$6.42 billion a year ago aggregating to US$14.40 billion. Though current account settled with a net inflow of US$8.47 billion or a decrease of 9.5 percent, the capital and financial account on the other hand, rebounded with US$7.95 billion net inflow from its deficit of US$1.63 billion last year.

Net current transfer receipts slightly grew by 1.9 percent to US$16.60 billion in 2010 from US$16.28 billion in 2009.

The merchandise trade drew back by 17.4 percent from a shortfall of US$12.89 billion recorded in 2009. The deficit was moved up to US$10.38 billion in 2010.

The trade-in services account posted net receipts of US$1.95 billion in 2010, recording a decrease of 7.9 percent from its US$2.11 billion surplus last year.

Income account showed strength with its US$308 million surplus as compared to US$193 million deficit in 2009. This was due to the higher net income receipts by residents to affiliated enterprises and to portfolio investors.


The remarkable gains posted by direct investment (US$1.23 billion), portfolio investment (US$4.02 billion), and other investment (US$2.80 billion) covers up the US$191 million deficit encountered by financial derivatives aggregating the net inflow of capital and financial account to US$7.95 billion in 2010. This was the highest recorded over the last five years. (Refer to Table 23.20 for details.) Sources: 23.1-23.2 National Statistical Coordination Board. 23.3-23.4 Bangko Sentral ng Pilipinas. National Statistics Office.


A t C urrent Prices A t C onst ant 2 0 0 0 Pr ices2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

1. Household f inal consumpt ion 5,993,427 6,442,033 7,177,046 3,817,908 3,945,827 4,194,513 expenditure2. Government f inal consumpt ion 791,403 875,291 931,682 548,297 570,208 575,824 expenditure3. Capital format ion 1,331,662 1,849,380 2,113,995 899,333 1,183,650 1,279,682 a. Fixed capital 1,526,098 1,847,748 1,857,297 992,947 1,182,206 1,184,018 (1) Construct ion 785,427 949,406 928,313 417,708 490,659 460,387 (2) Durable equipment 541,642 692,519 715,051 452,560 567,833 597,240 (3) Breeding stock and orchard

development 168,960 173,494 178,640 98,592 98,928 98,678 (4) Intellectual property products 30,069 32,328 35,293 24,087 24,785 27,712 b. Changes in inventories (194,436) 1,632 256,698 (93,614) 1,444 95,664

4. Exports 2,587,015 3,133,507 3,019,743 2,385,812 2,886,133 2,764,877 a. Exports of goods 1,799,714 2,259,876 2,069,259 1,898,753 2,367,520 2,225,558 b. Exports of services 787,301 873,632 950,484 487,058 518,613 539,319

5. Less: Imports 2,677,363 3,296,732 3,506,946 2,354,109 2,884,280 2,890,486 a. Imports of goods 2,104,793 2,635,752 2,831,595 1,887,924 2,330,115 2,340,420 b. Imports of services 572,570 660,980 675,351 466,185 554,165 550,066

6. Stat ist ical discrepancy 0 0 0 0 0 0

Gross do mest ic p ro duct 8,026,143 9,003,480 9,735,521 5,297,240 5,701,539 5,924,409

Net factor income from the rest of the world 2,626,323 2,992,597 3,142,606 1,691,527 1,859,847 1,878,607

Gross nat ional p ro duct 10,652,466 11,996,077 12,878,127 6,988,767 7,561,386 7,803,016

Source: National Stat ist ical Coordinat ion Board.

T ype o f Expend it ure

TABLE 23.1 Gross National Income and Gross Domestic Product by Expenditure Shares: 2009-2011

(In Million Pesos)


A t C urrent Prices A t C onst ant 2 0 0 0 Pr ices2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

Total exports of goods 1,799,714 2,259,876 2,069,259 1,898,753 2,367,520 2,225,558

Prinicipal exports of goods 1,380,983 1,766,510 1,450,109 1,448,495 1,922,929 1,594,354

Electronic components 1,078,402 1,402,444 1,019,512 1,230,670 1,682,901 1,342,757

Components/devices (semiconductors) 756,036 1,074,143 756,636 924,297 1,363,243 1,063,874 Electronic data processing 239,108 247,142 186,703 217,510 228,834 191,430 Off ice equipment 12,058 10,923 9,764 10,969 10,493 9,891 Consumer electronics 14,541 13,284 11,328 22,549 20,839 18,746 Telecommunicat ion 5,721 3,534 4,342 6,497 4,242 5,542 Communicat ion/radar 19,024 31,457 14,696 21,604 36,034 17,507 Control instrumentat ion 4,532 3,244 2,260 4,123 3,072 2,556 M edical/ industrial instrumentat ion 1,572 1,595 1,670 1,413 1,511 1,770 Automotive electronics 25,810 17,122 32,113 21,709 14,634 31,441

Principal agricultural products 72,575 96,317 140,007 42,606 41,690 54,644 Bananas, including plaintains, f resh or dried 17,170 14,397 20,565 9,087 8,570 11,424 Coconut oil 28,272 57,055 59,615 16,284 20,256 14,782 Copra oil, cake and meal 2,292 3,530 2,543 1,351 1,406 665 Dessicated coconut 6,946 6,867 12,472 4,397 2,964 3,904 M ango, fresh or dried 1,189 1,965 4,370 1,017 1,190 2,691 Pineapple and pineapple products 12,600 10,789 14,745 7,490 6,243 6,977 Sugar 4,106 1,715 25,697 2,981 1,061 14,202

Principal f ishery products 18,348 17,298 15,088 15,030 14,202 11,428 Shrimps and prawns 2,472 2,182 2,483 2,828 2,213 2,449 Tuna 15,876 15,116 12,606 12,201 11,989 8,979

Art icles of apparel and clothing accessories 72,529 76,759 82,074 65,800 72,784 77,794Basketworks 1,897 2,025 2,059 1,739 2,209 1,715Cathodes and sect ions of cathodes, of ref ined copper 32,730 35,280 54,197 10,811 8,412 11,146Ignit ion wiring sets 35,760 49,931 48,022 27,046 38,457 38,228M etal components 22,975 34,930 34,184 17,308 26,456 24,655Other products manufactured from materials on consignment basis 31,817 34,928 23,733 32,019 30,385 23,717Petroleum products 13,950 16,599 31,231 5,466 5,434 8,269

Others 418,730 493,365 619,150 450,259 444,591 631,203

a Balance of payments were from the Bangko Sentral ng Pilipinas.b Foreign trade stat ist ics were gathered from the Nat ional Stat ist ics Off ice.c Formerly bars, rods, of copper.

Source: Nat ional Stat ist ical Coordinat ion Board.

TABLE 23.1a Exports of Goods of the Philippines: 2009-2011(FOB Value in Million Pesos)

I t em


TABLE 23.1b Imports of Goods of the Philippines: 2009-2011 (CIF Value in Million Pesos)

Item At Current

Prices At Constant 2000

Prices 2009 2010 2011 2009 2010 2011

Total imports of goods 2,104,79

3 2,635,75

2 2,831,595 1,887,92

4 2,330,11

5 2,340,420

Principal import goods 1,482,13

4 1,896,42

8 1,969,307 1,364,77

5 1,671,81

7 1,573,676

1. Electronics 433,504 548,934 463,562 695,496 864,567 756,842 Components/devices (semiconductors) 249,048 354,504 271,916 495,749 667,799 554,265 Electronic data processing 104,822 113,498 90,004 145,799 151,422 136,614 Office equipment 3,696 3,029 3,791 2,558 1,356 1,926 Consumer electronics 18,828 17,865 19,309 12,046 8,821 9,801 Telecommunication 40,990 39,165 47,041 28,644 21,769 30,076 Communication/radar 6,680 9,565 19,074 4,672 6,775 16,412 Control and instrumentations 5,243 6,258 7,186 3,449 3,739 4,450 Medical/industrial instrumentation 3,141 3,948 4,333 1,959 2,349 2,829 Automotive electronics 1,055 1,100 908 619 537 468

2. Mineral fuels 361,982 461,525 580,895 144,525 149,526 143,293 3. Machinery and mechanical appliances 103,568 141,081 160,591 93,715 118,901 138,464 4. Base metals 66,769 86,018 101,183 36,578 44,827 46,735 5. Transport equipment 111,156 159,769 146,638 96,319 138,540 128,958 6. Textile yarns 27,237 28,860 37,756 36,712 39,554 45,211 7. Electrical machinery 37,618 47,881 55,340 39,954 51,973 61,678 8. Artificial resins 37,776 56,764 75,345 33,129 42,527 54,393 9. Chemical products 55,688 66,711 78,298 34,026 38,958 42,311 10. Cereals 96,116 108,338 73,015 60,508 79,336 49,112 11. Dairy products 22,326 35,118 39,700 11,754 17,659 19,517 12. Medical and pharmaceutical products 34,509 37,683 42,192 31,241 32,715 34,531 13. Paper products 23,723 28,592 34,040 22,117 23,864 27,050 14. Feedstuff 29,620 30,214 39,518 15,151 15,176 14,410 15. Metalliferous ores and metal scrap 40,540 58,941 41,234 13,551 13,696 11,170

Imports on consignment 312,042 357,124 413,060 251,497 335,314 417,376

Others 310,617 382,200 449,228 271,653 322,983 349,369

Sources: National Statistical Coordination Board.


A t C urrent Pr ices A t C onst ant 2 0 0 0 Pr icesIt em 2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

Exports of services 787,301 873,632 950,484 487,058 518,613 539,319

Transportat ion 54,967 60,893 57,081 28,852 29,057 26,382

Insurance 860 1,711 1,418 538 1,030 818

Travel 110,380 123,334 140,350 68,491 74,243 80,983

Government 11,876 11,755 11,831 7,575 7,210 6,956

M iscellaneous services 609,218 675,938 739,804 381,603 407,073 424,181

So urce: Nat ional Stat ist ical Coordinat ion Board.

A t C urrent Pr ices A t C onst ant 2 0 0 0 Pr ices2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

Imports of services 572,570 660,980 675,351 466,185 554,165 550,066

Transportat ion 144,610 165,591 155,176 117,596 139,051 125,915

Insurance 11,193 14,002 14,968 9,108 11,800 12,210

Travel 306,972 361,224 374,079 250,211 302,086 305,103

Government 10,528 10,421 10,482 8,540 8,716 8,474

M iscellaneous servicesa 99,268 109,742 120,647 80,730 92,512 98,363

a Communicat ion included under M iscellaneous services.


TABLE 23.1c Exports of Services: 2009-2011(In Million Pesos)

TABLE 23.1d Imports of Services: 2009-2011(In Million Pesos)

I t em


A t C urrent Pr ices A t C onst ant 2 0 0 0 Prices2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

Agriculture, hunt ing, forestry 1,049,874 1,108,718 1,245,196 663,744 662,665 680,444 and f ishery

Agriculture and forestry 871,012 928,581 1,062,111 526,622 526,234 549,672Fishing 178,862 180,137 183,086 137,122 136,432 130,772

Industry 2,545,104 2,932,279 3,056,468 1,666,601 1,859,515 1,901,401M ining and quarrying 106,396 128,727 143,027 59,130 65,898 70,509M anufacturing 1,706,391 1,930,779 2,047,718 1,137,534 1,264,523 1,324,330Construct ion 460,426 551,230 535,377 284,994 325,820 302,014Electricity, gas, and water 271,892 321,543 330,346 184,943 203,274 204,547

Services 4,431,165 4,962,483 5,433,857 2,966,895 3,179,359 3,342,564 Transportat ion, storage and communicat ion 561,093 586,197 627,255 423,398 427,766 446,026 Trade and repair of motor vehicles, motorcycles, personal and household goods 1,359,500 1,563,786 1,695,908 875,616 948,743 980,514 Financial intermediat ion 544,526 622,404 684,088 340,329 374,716 394,371 Real estate, rent ing, and business act ivit ies 884,131 979,129 1,115,645 547,866 588,947 643,459 Public administrat ion and defense, compulsary social security 323,605 372,304 392,616 241,009 255,087 255,776 Other services 758,310 838,663 918,345 538,677 584,100 622,418 Gross domest ic product 8,026,143 9,003,480 9,735,521 5,297,240 5,701,539 5,924,409

Net primary income from the rest of the world 2,626,323 2,992,597 3,142,606 1,691,527 1,859,847 1,878,607

Gross nat ional income 10,652,466 11,996,077 12,878,127 6,988,767 7,561,386 7,803,016

a Housing includes real estate and ownership of dwellings.


M ajor Indust ry Group

TABLE 23.2 Gross National Income and Gross Domestic Productby Industrial Origin: AY 2009-2011

(In Million Pesos )


A t C urrent Prices A t C o nst ant 2 0 0 0 Pr ices2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

Agriculture, hunt ing and forestry 871,012 928,581 1,062,111 526,622 526,234 549,672

Agriculture 867,254 926,146 1,058,205 522,726 523,557 545,436

Palay 219,755 221,236 243,603 125,989 122,968 130,252 Corn 65,051 60,577 76,770 37,962 34,589 37,876 Coconut, including copra 60,964 76,856 117,742 30,085 29,903 29,380 Sugarcane 19,377 27,351 38,293 13,538 11,408 18,221 Banana 72,737 86,891 83,805 33,094 33,302 33,539 M ango 17,584 17,396 16,947 14,183 15,164 14,418 Pineapple 10,495 9,916 13,126 13,908 13,860 14,299 Coffee 5,280 5,261 5,936 3,565 3,493 3,293 Cassava 11,888 12,103 14,412 7,505 7,866 8,265 Rubber 11,741 22,890 27,975 2,957 2,996 3,219 Other crops 68,196 59,788 77,735 40,813 41,930 40,297 Livestock 141,047 150,329 151,635 89,906 90,478 92,255 Poultry 92,771 101,846 106,906 63,393 68,256 71,262 Agricultural act ivit ies and services 70,367 73,707 83,319 45,827 47,345 48,860

Forestry 3,758 2,435 3,906 3,896 2,676 4,236

Fishery 178,862 180,137 183,086 137,122 136,432 130,772

Gross value added in agriculture hunt ing, forestry and f ishing 1,049,874 1,108,718 1,245,196 663,744 662,665 680,445

So urce: National Stat ist ical Coordination Board.

TABLE 23.3 Gross Value Added in Agriculture, Hunting, Forestry, and Fishingby Industry Group: AY2009-2011

(Million Pesos)

Indust ry Group


A t C urrent Prices A t C o nst ant 2 0 0 0 Prices2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

Copper mining 5,260 7,656 9,244 2,144 2,496 2,672

Gold mining 37,010 48,199 42,504 10,962 11,828 9,072

Chromium mining 99 92 108 31 32 40

Nickel mining 4,330 8,048 12,314 6,451 10,206 14,789

Other metallic mining 846 1,250 3,113 271 297 500

Crude oil, natural gas and condensate 40,615 40,517 46,127 24,029 22,542 23,699

Stone quarrying, clay and sand pits 7,949 9,475 10,217 7,488 8,844 8,966

Other nonmetallic mining 10,285 13,490 19,401 7,752 9,653 10,771

Gro ss value add ed in M ining and Quarrying 106,396 128,727 143,027 59,130 65,898 70,509


TABLE 23.4 Gross Value Added in Mining and Quarrying

(In Million Pesos)

Ind ust ry Gro up

by Industry Group: 2009-2011


A t C urrent Prices A t C o nst ant 2 0 0 0 Pr ices2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

Basic metal industries 39,924 46,920 51,687 23,252 26,024 25,869Beverage industries 63,857 70,944 80,568 46,051 50,133 58,743Chemical and chemical products 103,816 117,076 136,708 67,851 77,406 91,401Electrical machinery and apparatus 27,831 35,533 38,742 22,932 30,399 32,515Fabricated metal products 17,226 19,572 20,694 11,983 13,488 14,391Food manufactures 765,155 820,661 885,704 467,301 479,445 494,349Footwear and leather and leather products 8,039 8,257 7,922 6,036 5,634 5,388Furniture and f ixtures 12,583 14,265 20,043 16,875 20,185 39,326M achinery and equipment except electrical 21,506 24,893 25,889 16,291 19,752 19,908M iscellaneous manufactures 35,987 45,990 47,912 33,235 43,186 48,599Nonmetallic mineral products 45,755 51,685 52,426 29,190 32,058 32,991Off ice, accounting and comput ing machinery 18,582 18,433 20,070 15,821 16,539 17,362Paper and paper products 11,928 13,837 15,621 10,389 12,347 14,147Petroleum and other fuel products 97,448 134,598 150,303 48,614 55,869 50,806Publishing and print ing 13,725 14,443 13,758 8,470 8,623 8,140Radio, television and communicat ion equipment and apparatus 234,074 294,038 275,520 186,810 243,646 242,616Rubber and plast ic products 23,590 27,771 31,419 18,399 20,297 21,845Text ile manufactures 45,365 49,082 50,272 29,199 31,472 30,763Tobacco manufactures 13,483 7,602 6,455 10,952 5,968 4,844Transport equipment 30,065 38,579 37,310 24,554 31,580 29,565Wearing apparel 55,960 55,818 59,698 29,346 26,465 27,976Wood, bamboo, cane and rat tan art icles 20,492 20,781 18,995 13,984 14,009 12,788

Gro ss value ad d ed in manuf act uring 1,706,391 1,930,779 2,047,718 1,137,534 1,264,523 1,324,330

So urce: National Stat ist ical Coordinat ion Board.

TABLE 23.5 Gross Value Added in Manufacturing

(In Million Pesos)

Ind ust ry Gro up



A t C urrent Pr ices2 0 0 9 2 0 10 2 0 11

Public 278,937 301,577 212,546 Private 506,490 647,829 715,767

Gross value in construct ion 785,427 949,406 928,313

Gross value added in construct ion 460,426 551,230 535,377

A t C onst ant 2 0 0 0 Pr ices2 0 0 9 2 0 10 2 0 11

Public 138,580 144,247 98,308 Private 279,128 346,413 362,079

Gross value in construct ion 417,708 490,659 460,387

Gross value added in construct ion 284,994 325,820 302,014



Electricity 220,094 265,299 269,595 Steam 9,793 9,999 10,132 Water 42,006 46,245 50,618

Gross value added in electricity, gas and water supply 271,892 321,543 330,346


Electricity 158,161 175,469 176,672 Steam 8,897 9,321 9,375 Water 17,885 18,483 18,500

Gross value added in electricity, gas and water supply 184,943 203,274 204,547


(In Million Pesos)

Ind ust ry Group

TABLE 23.6 Gross Value and Gross Value Added in Constructionby Industry Group: 2009-2011

(In Million Pesos)

Ind ust ry Group

TABLE 23.7 Gross Value Added in Electricity, Gas, and Water Supplyby Industry Group: 2009-2011



Transport and storage 282,869 304,428 337,788

Land 177,882 182,959 199,557 Water 17,726 18,938 21,151 Air 36,257 46,192 49,785 Storage and services incidental to transport 51,004 56,339 67,295

Communicat ion 278,224 281,769 289,467

Gross Value Added in Transport , Storage and Communication 561,093 586,197 627,255


Transport and storage 152,023 154,089 165,097

Land 92,835 89,331 93,051 Water 11,059 12,337 13,781 Air 16,418 17,978 18,592 Storage and services incidental to transport 31,711 34,443 39,673

Communicat ion 271,374 273,678 280,929

Gross Value Added in Transport , Storage and Communication 423,398 427,766 446,026


TABLE 23.8 Gross Value Added in Transportation, Storage, and Communicationby Industry Group: 2009-2011

(In Million Pesos)

Indust ry Group



M aintenance and repair of motor vehicles motorcycles, personal and household goods 40,289 46,515 50,979

Wholesale 285,047 317,231 339,168

Retail 1,034,164 120,040 1,305,761

Gross Value Added in Trade and Repair of M otor Vehicles, M otorcycles, Personal and Household Goods 1,359,500 1,563,786 1,695,908


M aintenance and repair of motor vehicles motorcycles, personal and household goods 27,442 29,594 30,376

Wholesale 161,885 171,226 167,548

Retail 686,290 747,922 782,591

Gross Value Added in Trade and Repair of M otor Vehicles, M otorcycles, Personal and Household Goods 875,616 948,743 980,514


Indust ry Group

TABLE 23.9 Gross Value Added in Trade and Repair of Motor Vehicles

(In Million Pesos)Motorcycles, Personal and Household Goods, by Industry Group: 2009-2011



Banking inst itut ions 251,174 291,089 309,114 156,984 175,249 178,218Nonbank f inancial intermediat ion 173,734 196,554 223,632 108,584 118,335 128,902Insurance 86,983 99,169 112,946 54,364 59,705 65,120Act ivit ies auxiliary to f inancial intermediat ion 32,635 35,592 38,395 20,397 21,428 22,130

Gross value added in f inancial intermediat ion 544,526 622,404 684,088 340,329 374,716 394,371

Source: Nat ional Stat ist ical Coordination Board.


Real estate 147,558 178,922 217,870 91,223 106,618 124,248Rent ing and other business act ivit ies 377,975 428,220 509,734 205,523 226,316 257,467Ownership of dwellings 358,599 371,987 388,041 251,120 256,013 261,744

Gross value added in real estate, rent ing and business act ivit ies 884,131 979,129 1,115,645 547,866 588,947 643,459



Education 342,114 355,207 393,199 256,461 261,796 279,771Health and social work 114,888 125,507 137,928 70,952 75,580 80,376Hotels and restaurants 129,534 145,237 161,345 90,643 98,851 107,216Sewage and refuse disposal sanitat ion and similar act ivit ies 3,208 3,647 4,110 2,173 2,363 2,568Recreat ional, cultural and sport ing act ivit ies 120,743 159,581 170,937 88,478 115,336 122,201Other service act ivit ies 47,824 49,485 50,826 29,969 30,175 30,287

Gross value added in other services 758,310 838,663 918,345 538,677 584,100 622,418


TABLE 23.10 Gross Value Added in Financial Intermediation

(In Million Pesos)

Indust ry Group

TABLE 23.11 Gross Value Added in Real Estate, Renting and Business Activities by Industry Group: 2009-2011

(In Million Pesos)


Group: 2009-2011

Indust ry Group

TABLE 23.12 Gross Value Added in Other Services, by Industry

(In Million Pesos)

Indust ry Group


I t em 2 0 0 9 2 0 10 2 0 11

1. Compensat ion of employees 2,407,843 2,719,311 3,110,471 2. Operat ing surplus, net 4,195,880 4,728,277 4,967,383 3. Consumption of f ixed capitala 882,876 972,115 1,020,320 4. Taxes on production and on importsb 596,327 640,783 707,477 5. Less: Subsidies 56,783 57,006 70,129

Gro ss do mest ic p ro duct 8,026,143 9,003,480 9,735,521

6. Household f inal consumption expenditure 5,993,427 6,442,033 7,177,046 7. Government f inal consumption expenditure 791,403 875,291 931,682 8. Gross domest ic capital format ion 1,331,662 1,849,380 2,113,995

a. Fixed capital 1,526,098 1,847,748 1,857,297 b. Changes in inventories (194,436) 1,632 256,698

9. Exports of goods and services 2,587,015 3,133,507 3,019,74310. Less: Imports of goods and services 2,677,363 3,296,732 3,506,946

Gro ss do mest ic p ro duct 8,026,143 9,003,480 9,735,521


a Consumption of f ixed capital was formerly termed as depreciat ion.b Taxes on product ion and on imports was formerly termed as indirect taxes.

TABLE 23.13 Consolidated Accounts I-Gross Domestic Product

(In Million Pesos at Current Prices)and Expenditure: 2009-2011


I t em 2 0 0 9 2 0 10 2 0 11

1. Household f inal consumpt ion expenditure 5,993,427 6,442,033 7,177,046

2. Government f inal consumption expenditure 791,403 875,291 931,682

3. Saving, net 3,038,971 3,723,146 3,770,552

U se o f net nat ional d isp osab le income 9,823,801 11,040,471 11,879,281

4. Net nat ional income 9,769,590 11,023,962 11,857,807

4.1 Compensat ion of employees, net 5,256,427 5,930,304 6,457,621 a. From resident producers 2,407,843 2,719,311 3,110,471 b. From the rest of the world 2,848,584 3,210,993 3,347,150 c. Less: To the rest of the world - - -

4.2 Operat ing surplus f rom resident producers, net 4,195,880 4,728,277 4,967,383

4.3 Property income, net (222,262) (218,395) (204,544) a. From the rest of the world 53,713 43,610 49,909 b. Less: To the rest of the world 275,974 262,005 254,453

4.4 Taxes on product ion and on imports 596,327 640,783 707,477

4.5 Less: Subsidies 56,783 57,006 70,129

5. Current transfers f rom the rest of the world 84,269 53,947 58,763

6. Less: Current transfers to the rest of the world 30,059 37,438 37,289

N et nat ional d isposab le income 9,823,801 11,040,471 11,879,281


TABLE 23.14 Consolidated Accounts II - National Disposable Income and Its Use: 2009-2011

(In Million Pesos at Current Prices)


It em 2 0 0 9 2 0 10 2 0 11

1. Gross f ixed capital format ion 1,526,098 1,847,748 1,857,2972. Changes in inventories (194,436) 1,632 256,6983. Net lending to the rest of the world 2,598,045 2,853,549 2,688,180

Gross accumulat ion 3,929,707 4,702,929 4,802,175

4. Inst itut ional saving, net 3,038,971 3,723,146 3,770,552 a. Nonfinancial corporations 1,729,034 2,170,077 2,232,550 b. Financial corporations 698,287 624,762 700,055 c. General government 233,055 228,211 306,103 d. Households including NPIs 378,595 700,095 531,844

5. Consumption of f ixed capital 882,876 972,115 1,020,320

6. Capital t ransfers f rom the rest of the world 7,860 7,668 11,304

F inance o f g ro ss accumulat ion 3,929,707 4,702,929 4,802,175

Source: National Stat ist ical Coordination Board.

TABLE 23.15 Consolidated Accounts III - Gross Accumulation: 2009-2011(In Million Pesos at Current Prices)


I t em 2 0 0 9 2 0 10 2 0 11

1. Exports of goods and services 2,587,015 3,133,507 3,019,743

a. Goods FOB, SNAa 1,799,714 2,259,876 2,069,259 b. Services 787,301 873,632 950,484

2. Compensation of employees from the rest of the world 2,848,584 3,210,993 3,347,1503. Property and entrepreneurial income from the rest of the world 53,713 43,610 49,909

4. Current transfers f rom the rest of the world 84,269 53,947 58,763 a. To general government 30,487 13,983 19,316 b. To households 2,103 1,543 1,133 c. To other inst itut ional sectors 51,678 38,421 38,314

C urrent receip t s 5,573,581 6,442,057 6,475,564

5. Imports of goods and services 2,677,363 3,296,732 3,506,946

a. Goods FOB, SNAa 2,104,793 2,635,752 2,831,595 b. Services 572,570 660,980 675,351

6. Compensation of employees to the rest of the world - - - 7. Property and entrepreneurial income from the rest of the world 275,974 262,005 254,453

8. Current transfers to the rest of the world 30,059 37,438 37,289

a. From general government 8,860 4,646 3,855 b. From households 829 1,266 1,249 c. From other inst itut ional sectors 20,369 31,526 32,186 c.1 Nonf inancial 19,307 29,862 30,436 c.2 Financial 1,062 1,664 1,750

9. Surplus on current t ransact ions 2,590,185 2,845,881 2,676,876

C urrent d isb ursement s 5,573,581 6,442,057 6,475,564

10. Surplus on current transact ions 2,590,185 2,845,881 2,676,87611. Capital transfers f rom the rest of the world 7,860 7,668 11,304

12 . N et lend ing t o t he rest o f t he wo rld 2,598,045 2,853,549 2,688,180

a FOB - f reight on board, SNA - System of nat ional accounts.

So urce: National Stat ist ical Coordination Board

TABLE 23.16 Consolidated Accounts IV - External Transaction: 2009-2011(In Million Pesos at Current Prices)


I t em 2 0 0 9 2 0 10 2 0 11

1. Operat ing surplus, net 2,370,427 2,718,297 2,785,333 2. Property income 252,494 276,645 282,609 3. Current transfers, received 113,854 112,665 104,891

a. Non-life insurance claims 16,985 25,757 29,337b. Other current transfers 96,869 86,908 75,554

To t al inco me 2,736,776 3,107,607 3,172,833

4. Property expense 703,546 572,311 523,707 5. Current transfers, paid 52,540 74,555 81,844

a. Non-life insurance premiums 16,985 25,757 29,337b. Other current transfers 35,555 48,799 52,507

6. Taxes on income and wealth 251,655 290,663 334,733 7. Saving, net 1,729,034 2,170,077 2,232,550

To t al use o f income 2,736,776 3,107,607 3,172,833


I t em 2 0 0 9 2 0 10 2 0 11

1. Operat ing surplus, net 328,855 379,987 431,619 2. Property income 454,906 343,098 377,936 3. Current transfers, received 19,483 30,841 34,902

a. Non-life insurance premiums 13,592 24,965 28,435b. Non-life insurance claims 3,196 3,849 4,384c. Other current t ransfers 2,695 2,028 2,083

To t al inco me 803,245 753,927 844,457

4. Property expense 63,835 71,742 79,327 5. Current transfers, paid 27,276 41,228 45,830

a. Non-life insurance premiums 13,592 24,965 28,435b. Non-life insurance claims 3,196 3,849 4,384c. Other current t ransfers 10,488 12,414 13,011

6. Taxes on income and wealth 13,846 16,194 19,245 7. Saving, net 698,287 624,762 700,055

To t al use o f income 803,245 753,927 844,457


TABLE 23.17 Income and Outlay Account I - Non-Financial Corporations: 2009-2011(In Million Pesos at Current Prices)

TABLE 23.17a Income and Outlay Account II - Financial Corporations: 2009-2011(In Million Pesos at Current Prices)


I t em 2 0 0 9 2 0 10 2 0 11

1. Property income 147,242 134,796 140,1582. Taxes on product ion and on imports 596,327 640,783 707,4773. Current taxes on income and wealth 464,503 532,331 614,0774. Compulsary fees and f ines 129,007 117,731 134,2495. Employer's social contribut ions 146,498 160,514 173,3616. Current t ransfers, received 35,499 24,361 26,149

a. Non-life insurance claims 322 397 452b. Other current t ransfers 35,177 23,965 25,698

To t al income 1,519,076 1,610,516 1,795,471

7. Government f inal consumption expenditure 791,403 875,291 931,6828. Property expense 289,872 296,977 323,7059. Current t ransfers 18,080 13,909 15,213

a. Non-life insurance premiums 322 397 452b. Other current t ransfers, paid 17,758 13,512 14,761

10. Subsidies 56,783 57,006 70,12911. Social benef its other than social t ransfers in kin 129,884 139,121 148,63812. Saving, net 233,055 228,211 306,103



TABLE 23.17b Income and Outlay Account III - General Government: 2009-2011(In Million Pesos at Current Prices)


I t em 2 0 0 9 2 0 10 2 0 11

1. Operat ing surplus, net 1,496,597 1,629,992 1,750,431 2. Compensat ion of employees 5,256,427 5,930,304 6,457,621 a. CE f rom domest ic 2,407,843 2,719,311 3,110,471 b. CE from ROW 2,848,584 3,210,993 3,347,150 3. Property income 191,754 207,575 200,977 4. Social security benef its 129,884 139,121 148,638 5. Current t ransfers, received 215,163 219,106 236,304 a. Non-life insurance claims 7,789 8,896 10,133 b. Other current t ransfers 207,374 210,209 226,171

To t al income 7,289,826 8,126,099 8,793,971

6. Household f inal consumption expenditure 5,993,427 6,442,033 7,177,046 7. Property expense 162,853 152,650 167,724 8. Taxes on income and wealth 397,405 462,328 522,884 9. Compulsory fees and f ines 108,627 95,732 109,16310. Social security contribut ions 146,498 160,514 173,36111. Current t ransfers, paid 102,420 112,747 111,948 a. Non-life insurance premiums 7,789 8,896 10,133 b. Other current t ransfers 94,631 103,850 101,81512. Saving, net 378,595 700,095 531,844



TABLE 23.17c Income and Outlay Account IV - Households Including

(In Million Pesos at Current Prices)NPIs: 2009-2011

It em 2 0 0 9 2 0 10 2 0 11

Estimates in current prices in pesos

Gross domest ic product 88,180 97,227 103,366 Gross nat ional income 117,034 129,544 136,733 Household f inal consumption expenditure 65,847 69,567 76,202

Est imates in constant 2000 prices in pesos

Gross domest ic product 58,199 61,570 62,902 Gross nat ional income 76,783 81,654 82,848 Household f inal consumption expenditure 41,946 42,610 44,535

Populat ion a 91.0 92.6 94.2

a Per methodology advised by the NSO, the NSCB technical staf f and the NSO computed annual and end-quarter populat ion est imates using curvulinear interpolat ion at decelerat ing rates, with the results of the 2000 and 2010 Censuses of Populat ion and Housing (CPH) as start and end dates of the reference populat ion. For purposes of nat ional accounts est imat ion, mid-quarter populat ion est imates are used; this is obtained by interpolat ing two consecut ive end-quarter est imates.


TABLE 23.18 Per Capita Gross Domestic Product, Gross National Income, and Household Consumption Expenditure: 2009-2011

(Estimates in Current and Constant 2000 Prices in Pesos, Population in Million)


A t C urrent Prices A t C onst ant 2 0 0 0 Prices2 0 0 9 2 0 10 2 0 11 2 0 0 9 2 0 10 2 0 11

Total durable equipment 541,642 692,519 715,051 452,560 567,833 597,240

M achinery specialized for part icular industries 122,305 162,378 182,359 99,824 130,776 153,280

Agricultural machineries 811 1,094 1,519 942 1,226 1,652 Tractors other than steam 309 283 575 193 167 195 M ining construct ion machineries 10,107 11,555 15,014 11,393 13,550 14,525 Text ile machineries 1,498 1,727 2,167 1,136 1,281 1,417 Sawmill and logging machineries 3 1 1 93 12 4 Sugarmill machineries 62 47 20 63 160 68 Pulp and paper machineries 470 597 864 1,063 1,880 1,832 M etalworking machineries 5,647 8,801 11,181 4,451 5,305 7,758 Telecommunicat ions, and sound-recording and reproducing equipment 67,809 84,495 94,370 57,952 75,050 85,712 Other special industrial machineries 35,587 53,779 56,648 22,541 32,145 40,117

General industrial machinery and equipment 79,298 92,100 104,876 62,395 78,833 90,109

Air-condit ioning and refrigerat ion equipment 10,968 13,029 13,378 11,725 14,738 14,831 Pumps and compressors 7,253 8,719 10,731 7,357 9,576 11,981 Other electrical machinery and apparatus 25,016 31,547 36,604 19,405 27,094 31,645 Other general industrial machineries 36,061 38,805 44,164 23,909 27,423 31,651

Transport equipment 233,750 315,766 300,482 191,779 242,941 232,483

Road vehicles 214,427 270,403 266,049 181,417 223,257 211,670 Railway transport 224 260 66 352 245 29 Air t ransport 12,305 36,695 24,394 4,201 10,969 13,576 Water transport 6,793 8,408 9,973 5,810 8,470 7,208

M iscellaneous equipment 106,290 122,276 127,334 98,562 115,284 121,369

Off ice machines and automatic data processing equipment 29,381 28,250 28,572 12,973 12,689 13,685 Other miscellaneous durable equipment 76,909 94,026 98,762 85,589 102,595 107,684


TABLE 23.19 Gross Domestic Capital Formation in Durable Equipmentby Major Type: 2009-2011

(In Million Pesos)

Type o f Equipment


I t em 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 10

A. Current Account 1,984 5,347 7,119 3,633 9,358 8,465

Goods and Services (9,113) (6,595) (6,142) (11,725) (6,728) (8,438) Exports 44,788 52,970 59,278 57,970 48,624 63,927 Imports 53,901 59,565 65,420 69,695 55,352 72,365 Goods (7,773) (6,732) (8,391) (12,885) (8,842) (10,384) Credit : Exports 40,263 46,526 49,512 48,253 37,610 50,684 Debit : Imports 48,036 53,258 57,903 61,138 46,452 61,068 Services (1,340) 137 2,249 1,160 2,114 1,946 Credit : Exports 4,525 6,444 9,766 9,717 11,014 13,243 Debit : Imports 5,865 6,307 7,517 8,557 8,900 11,297

Income (294) (1,255) (882) 111 (193) 308 Credit : Receipts 3,937 4,388 5,351 5,973 5,712 6,093 Debit : Payments 4,231 5,643 6,243 5,862 5,905 5,785Current Transfers 11,391 13,197 14,153 15,247 16,279 16,595 Credit : Receipts 11,711 13,511 14,573 15,780 16,910 17,419 Debit : Payments 320 314 420 533 631 824

B. Capital and Financial Account 2,229 20 3,527 (1,802) (1,627) 7,948

Capital Account 40 138 24 53 104 98 Credit : Receipts 58 181 108 114 166 170 Debit : Payments 18 43 84 61 62 72Financial Account 2,189 (118) 3,503 (1,855) (1,731) 7,850 Direct Investment 1,665 2,818 (620) 1,285 1,604 1,226 Debit : Assets, Residents' Investments Abroad 189 103 3,536 259 359 487 Credit : Liabilit ies, Non-Residents' Investments in the Phils. 1,854 2,921 2,916 1,544 1,963 1,713 Port folio Investment 3,475 3,043 4,623 (3,798) (625) 4,018 Debit : Assets, Residents' Investments Abroad 146 1,567 (834) (619) 2,715 3,442 Credit : Liabilit ies, Non-Residents' Investments in the Phils. 3,621 4,610 3,789 (4,417) 2,090 7,460 Financial Derivat ives (43) (138) (288) (113) 32 (191) Debit : Assets, Residents' Investments Abroad (98) (159) (170) (541) (403) (429) Credit : Liabilit ies, Non-Residents' Investments in the Phils. (141) (297) (458) (654) (371) (620) Other Investment (2,908) (5,841) (212) 771 (2,742) 2,797 Debit : Assets, Residents' Investments Abroad 4,791 3,512 4,840 (4,334) 1,967 2,273 Credit : Liabilit ies, Non-Residents' Investments in the Phils. 1,883 (2,329) 4,628 (3,563) (775) 5,070

Net Unclassif ied Items (1,803) (1,598) (2,089) (1,742) (1,310) (2,010)

Overall BOP Posit ion 2,410 3,769 8,557 89 6,421 14,403

Debit : Change in Reserve Assets 1,621 2,934 8,550 1,597 4,911 14,401Credit : Change in Reserve Liabilit ies (789) (835) (7) 1,508 (1,510) (2) Use of Fund Credits (321) (402) 0 0 0 0 Short-term (468) (433) (7) 1,508 (1,510) (2)

M emo items: Change in Commercial Banks Net Foreign Assets (1,531) (4,368) (1,025) 2,852 (3,752) 4,932 OFW Cash Remit tances 12,292 14,037 14,956 17,004 17,955 19,418 of which channeled thru the banking system 10,689 12,761 14,450 16,428 17,348 18,764 Basic Balance 3,211 5,519 8,859 3,391 12,038 11,605 Net Unclassif ied Items as Percent of Total Trade (2.0) (1.6) (1.9) (1.6) (1.6) (1.8)

So urce: Bangko Sentral ng Pilipinas.

TABLE 23.20 Balance of Payments of the Philippines: 2005-2010(In Million US Dollars)

23 national accounts - psa.gov.ph

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