NOTES ON The Medium-Term Philippine Development Plan for the period 2004-2010: National Output / National Economic Performance

MARY GRACE B RANJO
National Output / National Economic Performance


Gross National Product (GNP) is the value of all the goods and services produced in an economy, plus the value of the goods and services imported, less the goods and services exported.

Year GNP, in PhP Ann. Growth Rate, % Per capita increase in PhP

1975 453 B 10,600

1998 1,012 B 3.30 13,236



Despite the Asian crisis in 1997, our GNP and GDP sustained its growth momentum.



Gross Domestic Product (GDP) represents the total value of the goods and services produced by an economy over some unit of time (a month, a season, a year etc.). The "Domestic" part of the name comes from the fact, unlike GNP, it does not consider imports or exports in the calculation

Year GDP, in PhP Ann. Growth Rate, % Per capita increase in PhP

1975 454 B 10,600

1998 955 B 3.30 13,236



The growth of the GDP from 1995-2000 was driven by industry and services. Industry supported GDP growth with an annual average growth of 3.17 percent.



Services, benefiting from deregulation, surged by an annual average of 5.19 percent during the same period.



The share of agriculture and industry in the GDP however continues to decrease, a trend consistent with the increasing urbanization of the country’s population and the shrinking of the number of people engaged in non-agricultural activities and the number of people being laid off by manufacturing firms (?).



Regional Economic Performance



Regional shares to GDP, 1998

Region Percentage Share Region Percentage Share

NCR 31 VII 7

III 9 XI 7

IV 16 Other regions 23

VI 7

From 1995 to the present, the National Capital Region has maintained its economic dominance, accounting for 31 percent of GDP. Next to NCR are its contiguous neighbors Regions IV and III.



Regional share to GDP by sector, 1998



Regions IV, XI VI, and III have the highest contribution to agriculture (fishery, forestry).

The bulk of industrial output (mining and quarrying, manufacturing, construction, utilities) come from NCR, and Regions IV and III. Contribution through the services sector (transportation, communication and storage, trade, finance, house construction and real estate, private services, and government service), at 68 percent, come from NCR, and Regions IV, III and VII.



References:

1. NEDA, National Framework for Physical Planning 2001-2030, 2002

2. AIM Policy Center, ed. Luningning Achacoso-Sevilla , “The Ties that Bind: Population and Development in the Philippines 2nd ed.”2004