chapter 8 - measuring the economy
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HETARTRANSCRIPT
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Chapter 8
Measuring the Economy
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Chapter 8
Measuring the Economy
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Chapter 8
Measuring the Economy
The National Statistical Coordination Board (NSCB), along with three other agencies namely, the National Statistics Office (NSO), the Bureau of Labor and Employment Statistics (BLES), and the Bureau of Agricultural Statistics (BAS) shall be known as the PHILIPPINE STATISTICS AUTHORITY (PSA) starting December 29, 2013 as per Republic Act 10625 otherwise known as the Philippine Statistical Act of 2013.
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Chapter 8
Measuring the Economy
Philippine Statistical Act of 2013
"An Act Reorganizing the Philippine Statistical System, Repealing for the Purpose Executive Order Number
One Hundred Twenty-One, Entitled "Reorganizing and Strengthening the Philippine Statistical System and for
Other Purposes"
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Chapter 8
Measuring the Economy
Philippine Statistical Act of 2013
Creates the Philippine Statistics Authority (PSA) that shall comprise the PSA Board and offices on sectoral statistics, censuses and technical coordination, civil registration and central support and field statistical services. The PSA shall be constituted from among the existing personnel of the major statistical agencies engaged in primary data collection and compilation of secondary data, i.e., the National Statistics Office, the Technical Staff of the National Statistical Coordination Board, the Bureau of Agricultural Statistics, and the Bureau of Labor and Employment Statistics.
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Chapter 8
Measuring the Economy
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Chapter 8
Measuring the Economy
The National Economic and Development Authority is the country’s premier socioeconomic planning body, highly regarded as the authority in macroeconomic forecasting and policy analysis and research. It provides high-level advice to policymakers in Congress and the Executive Branch. Its key responsibilities include:
•Coordination of such activities as the formulation of policies, plans and programs to efficiently set the broad parameters for national and sub-national (area-wide, regional and local development);
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Chapter 8
Measuring the Economy
• Review, evaluation, and monitoring of infrastructure projects identified under the Comprehensive and Integrated Infrastructure Program (CIIP) consistent with the government’s thrust of increasing investment spending for the growing demand on quality infrastructure facilities; and
• Undertaking of short-term policy reviews to provide critical analyses of development issues and policy alternatives to decision-makers.
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Measuring the Economy
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Chapter 8
Measuring the Economy
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Chapter 8
Measuring the Economy
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Chapter 8
Measuring the Economy
National Income Accounting
Gross Domestic Product (GDP)
And
Gross National Income (GNI and formerly known as Gross National Product)
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Chapter 8
Measuring the Economy
Gross Domestic Product (GDP)
- is the market value of all final goods and services produced within a country in a given period of time. In defining the GDP, the “value” is in monetary terms, which in our case, the market price is in Philippine Peso.
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However, there are activities that are excluded in the computation of GDP. These are the following.
1. The value of intermediate goods used in the production of final goods and services.
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2. Nonproductive transaction such as:
a.Purely financial transaction public transfer payments, private transfer payments, and buying and selling of securities.b.It includes secondhand sale and existing assets or properties (including used items) that were sold or transferred.
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2. Nonproductive transaction such as:
c. It does not include the presence of the underground economy.
d. It does not include unpaid productive activities.
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Chapter 8
Measuring the Economy
Gross Domestic Product (GDP)
- is the market value of all final goods and services produced within a country in a given period of time.
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Chapter 8
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Gross National Income (GNI and formerly known as Gross National Product)
- it is like GDP except that it includes goods produced by Filipinos working abroad and excludes goods produced in the Philippines by foreigners.
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Chapter 8
Measuring the Economy
Two Approaches in Computing the GDP
1.Industrial Origin Approach2.Expenditure Approach3.Income Approach
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Chapter 8
Measuring the Economy
1. Industrial Origin Approach
Agriculture, Hunting, Forestry, and Fishing+ Industry Sector
Mining and QuarryingManufacturingConstructionElectricity, Gas, and Water Supply
Service Sector Transportation, Storage, and CommunicationTrade and Repair of Motor VehiclesFinancial IntermediationReal Estate, Renting, and Business Activity
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2. Expenditure Approach
C + I + G + (X – N)
Wherein:
C - Private Consumption Expenditure I - Gross Domestic Investment G – Public Consumption Expenditure (X – M) – External Trade Balance
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3. Income Approach
Summation of the following:
1.Wages and Salaries 8. Indirect Business Taxes2.Total Rent 9. Capital Consumption3.Interest Allowance (Depreciation)4.Dividends or profit5.Proprietor’s Income6.Corporate Income Taxes7.Undistributed Corporate Profit
“If you can’t explain it simply, you don’t understand it well
enough.”
- Albert Einstein
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