RECENT data released by the Philippine Statistical Authority (PSA) indicated that 2015 reflected positive performance in the country’s national accounts. At current prices, GDP totaled P13,285 billion compared to P12,643 billion during 2014, while GNI at P16,062 billion was higher than the P15,527 billion during a similar period in 2014. At constant prices (2000 as base year), the figures were, for GDP P7,580 billion and for GNI P7,164 billion during comparable periods in 2015 and 2014. GNI (at constant 2000 prices) amounted to P9,110 billion and P8,641 billion in the years 2015 and 2014, respectively.
The components of GDP, at current prices, in 2015 were Household Financial Consumption Expenditure—P9,796 billion; Government Final Consumption Expenditure—P1,458 billion; Capital Formation—P2,770 billion; Exports of Goods and Services—P3,711 billion; Imports of Goods and Services (to be subtracted)—P4,365 billion; and taking into account Net Primary Income (NPI) of P2,777 billion, results in GNI.
At constant 2000 prices, the component figures were GDP—Household Financial Consumption Expenditure—P5,252 billion; Government Final Consumption Expenditure—P785 billion; Capital Formation—P1,781 billion; Exports—P3,550 billion less Imports—P3,845 billion; and with Net Primary Income of P1,530 billion, totaled to GNI in 2015.
Comparing the foregoing to 2014, GDP components at current prices were Household—P9,156 billion; Government—P1,314 billion; Capital Formation—P2,644 billion; Exports—P3,623 billion, less Imports of P4,095 billion; and with NPI of P2,685 billion, made up GNI in 2014.
Likewise, at constant 2000 prices in the previous year, GDP components were Household—P4,947 billion; Government—P718 billion; Capital Formation—P1,568 billion; Exports—P3,366 billion less Imports—P3,435 billion; and with NPI of P1,477 billion made up GNI for 2014. The foregoing figures were taken from the PSA’s statistical tables.
Let me now quote from the official report of the PSA the year on year percent changes in national economic growth. GDP (at constant 2000 prices) posted a 6.3-percent growth in the fourth quarter of 2015 on a year-on-year basis, the highest quarterly growth for the year. The growth, however, was slower than the 6.6 percent posted in the same period in 2014. This was driven mainly by increased household and government-consumption spending, as well as investments in durable equipment and public construction. Business and consumer sentiment continued to be optimistic, supporting the view that demand conditions remain firm in the near future, as credit and liquidity growth remains in step with the overall requirement of the economy.
The PSA further reported that the NPI grew by 5.4 percent in the fourth quarter of 2015, from 1.4 percent for the same period the previous year. As a result, GNI accelerated to 6.2 percent, from 5.7 percent ,in 2014. The fourth-quarter growth paved the way for the economy to grow by 5.8 percent for the whole-year 2015. On an annual basis, however, GNI slowed down to 5.4 percent in 2015, from 5.8 percent in 2014, as NPI decelerated from 4.1 percent in 2014 to 3.6 percent in 2015.
Growth was driven by the Services sector, which accelerated by 6.7 percent, from 5.9 percent. This performance was the highest since the 7.4-percent growth recorded in the third quarter of 2013.
The report further said that the Agricultural sector decelerated to 6 percent, from 7.9 percent posted in the same period in 2014. Currently, Economic Planning Secretary Emmanuel Esguerra said good weather conditions at the onset of 2016 provided an improvement in food prices from end-December 2015, when Typhoon Nona hampered food production, transport and delivery of agricultural products in the affected areas.
The Industry sector expanded by 6.8 percent in the fourth quarter and contributed 2.3 percentage points to total GDP growth. Among the three major economic sectors, Services gave the highest contribution to the growth in GDP, providing 4.1 percentage points.
Finally, the report said that taking into account projected population reaching to a level of 101.8 million, per-capita GDP grew by 4.3 percent from 3.7 percent, while per-capita GNI accelerated to 4.1 percent from 2.2 percent.
Likewise, per-capita Household Final Consumption went up by 4.6 percent from 3.2 percent, a positive development in the average Filipino consumer’s ability to purchase basic necessities.
Esguerra, however, warned that from a global perspective, the Philippine government must prepare for potential negative impacts on the economies of oil-producing economies, given the expectation of a prolonged period of low oil prices.
This would particularly affect overseas Filipino workers and, thus GNI.