We are reposting this report to correct data on the mining and quarrying industry in the first quarter of 2013.

The
earlier version reported that the industry grew by 17 percent. The truth is it actually contracted by 17 percent. )
MANILA, Philippines - The Philippines has the fastest growing economy among Asian countries for the first quarter
of 2013, the National Statistical Coordination Board (NSCB) announced Thursday.
NSCB announced that the countrys gross domestic product (GDP) grew by 7.8 percent in the first quarter of 2013,
faster than China (7.7 percent), Indonesia (6 percent), Thailand (5.3 percent), and Vietnam (4.9 percent), Secretary of
Socioeconomic Planning of the Philippines Arsenio Balisacan said in a press conference aired live on television
Thursday.
NSCB attributed the 7.8 percent increase in the GDP of the country to the strong performance of the manufacturing
and construction sectors, as well as the increase in government and consumer spending.
Officials said that the quarterly growth rate was the highest since reformist President Benigno Aquino III took office in
2010 on a promise to fight corruption and cut poverty. Aquinos allies won majorities in both houses of Congress in
elections early this month, making it possible for Aquino to push through with his legislative agenda in the remaining
three years in power.
The Philippines has bucked a regional trend of slowing growth amid recession in Europe and a slow recovery in the
United States. It expanded faster than Asian powerhouse China, where the economy unexpectedly slowed to 7.7
percent growth in the first quarter.
The industry sector, composed of mining, manufacturing, and construction, grew by 10.9 percent, higher than the
recorded 5.3 and 8.9 percent during the first and last quarter of 2012.
The Mining and Quarrying industry contracted by 17 percent in Q1 of 2013, compared to 1.7 and 2.8 percent increase
in the first and last quarter of the previous year.
Manufacturing industry grew by 9.7 percent this year, higher that the 6 and 5.5 percent in the first and last quarter of
2012.
Construction industry, meanwhile, further increased to 32.5 percent compared to 29.9 percent in the fourth quarter of
2012.
The services and agriculture sectors also contributed to the growth with 7 percent and 3.3 percent, respectively.
Balisacan said the Philippines hopes to achieve a target of 7 percent to 8 percent annual growth by 2016.
The fourth-quarter 2012 growth was revised from 6.8 percent to 7.1 percent. In 2012, the economy grew 6.8 percent.
Despite the impressive growth figures, the Philippines faces many challenges. Among them, the global slowdown,
excessive capital inflows and natural disasters, an annual occurrence in the Southeast Asian country where poor
infrastructure and rice fields suffer damage from typhoons and floods.

Employees work on a construction site in Manila. AFP FILE PHOTO

Disasters can negate the gains and even push back development. Moreover, the global economy remains fragile,
negatively affecting our trade performance, Balisacan told reporters.
Due to the attractive investment opportunities, we are also at risk of receiving too much capital inflows as advanced
economies implement quantitative easing. The challenge is to channel these inflows into productive investments, he
said.
Increased consumer and government spending was accompanied by investment in construction, the National
Statistical Coordination Board said.
Domestic consumption remained the main driver of growth, fueled by remittances from about 10 million overseas
Filipino workers. Last year, they sent back $24 billion, which accounts for 10 percent of the countrys economic
output. It makes the Philippines the third largest recipient of remittances in the world, after India and China and on par
with Mexico.
There has been little progress in job creation. The Asian Development Bank says that nearly half of those working
within the country are classified as vulnerable unpaid family workers and the self-employed, mostly in the informal

sector. Economists have urged the government to diversify the economy by revamping the educational system and
providing employment opportunities in manufacturing.
The proliferation of call centers has made outsourcing one of the fastest growing industries with revenue of $11 billion
in 2011. But for the large pool of unskilled labor, those jobs are out of reach. Poverty rates remain high, with about a
third of the population living on $2 a day.
Balisacan said that the government understood that for growth to be inclusive, the poor must be linked to the growth
industries.
The faster this can be done, the better it will be for the greater number of our people, he said. With reports from
Associated Press, DZIQ Radyo Inquirer 990AM
(Originally posted 10:41 a.m. May 30, 2013)

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The Philippines has the fastest growing economy among Asian countries for the first quarter of 2013, the
National Statistical Coordination Board (NSCB) said.
NSCB announced that the countrys gross domestic product grew by 7.8 percent in the first quarter of
2013, faster than China (7.7 percent), Indonesia (6 percent), Thailand (5.3 percent), and Vietnam (4.9
percent), Secretary of Socioeconomic Planning of the Philippines Arsenio Balisacan said.
NSCB attributed the 7.8 percent increase in the gross domestic product (GDP) of the country to the
strong performance of the manufacturing and construction sectors, as well as the increase in government
and consumer spending.
This was the second fastest growth rate of the country since the 8.9 percent GDP growth rate in one
quarter in 2010, Balisacan said.
The industry sector, composed of mining, manufacturing, and construction, grew by 10.9 percent, higher
than the recorded 5.3 and 8.9 percent during the first and last quarter of 2012.
The Mining and Quarrying industry grew by 17 percent in Q1 of 2013, an exponential increase compared
to 1.7 and 2.8 percent in the first and last quarter of the previous year.
Manufacturing industry grew by 9.7 percent this year, higher that the 6 and 5.5 percent in the first and last
quarter of 2012.
Construction industry, meanwhile, further increased to 32.5 percent compared to 29.9 percent in the
fourth quarter of 2012.
The services and agriculture sectors also contributed to the growth with 7 percent and 3.3 percent,
respectively.

http://goodnewspilipinas.com/2013/05/31/philippines-is-asias-fastest-growingeconomy-in-q1-2013/

30 May 2013

National Accounts, Q1 and Annual 2011- 2012

PHILIPPINE ECONOMY POSTS 7.8 PERCENT

GDP GROWTH
With the upbeat business and consumer sentiment, as well as sustained government capital
expenditure, the Philippine economy posted a 7.8 percent GDP growth in the first quarter of 2013
from 6.5 percent the previous year. The Q1 growth is the highest so far under the Aquino
administration and also the third consecutive quarter of more
than 7.0 percent GDP growth.
The robust growth was boosted by the strong performance of
Manufacturing and Construction, backed up by Financial
Intermediation and Trade.
On the demand side, increased consumer and government
spending shored up by increased investments in Construction
and Durable Equipment contributed to the highest quarterly GDP
growth since the second quarter of 2010.
The continued inflow of remittances from our overseas workers accelerated the Net Primary Income
from the Rest of the World to grow by 3.2 percent boosting the Gross National Income (GNI) growth
to 7.1 percent from 5.7 percent in 2012.
On a seasonally adjusted basis, GDP is gaining momentum growing by 2.2 percent in the first quarter
of 2013; GNI grew by 1.9 percent. All major sectors posted positive growth in seasonally adjusted
terms for the first quarter of 2013. In particular, the entire Agriculture sector posted a growth of 0.8
percent in the first quarter of 2013 from 0.4 percent the previous quarter. However, Industry slowed
down to 2.5 percent growth in the first quarter of 2013 from 4.0 percent in the previous quarter. But
the Services sector accelerated to 2.2 percent in the first quarter of 2013 from 1.1 percent in the
previous quarter as all its subsectors recorded positive growth. Positive growth in seasonally adjusted
terms across major sectors has been resulting since the fourth quarter of 2010.
With the countrys projected population reaching 96.8 million in the first quarter of 2013, per capita
GDP grew by 6.1 percent while per capita GNI grew by 5.3 percent and per capita Household Final
Consumption Expenditure (HFCE) grew by 3.4 percent.
JOSE RAMON G. ALBERT
Secretary General, NSCB

http://www.nscb.gov.ph/sna/2013/1st2013/2013qpr1.asp

The Philippines is a developing country. In 1997, the per capita gross national
product
(GNP) was P34,365 while the per capita gross domestic product (GDP) was
P32,961.
By 2003, the per capitaGNPhas increased to P56,109 and the per
capitaGDPto P52,241.
The economy grew at a faster rate in the 1990s than in the 1980s. From
1988 to 1997, the
countrys GNP grew at an annual average of 4.1 percent while the GDP went
up by an
average of 3.4 percent. It improved in 2002-2003 as GNP growth rate
increased to 5.6
percent andGDPto 4.7 percent (NSCB 2005).
In 2000, the annual per capita poverty threshold was estimated at P11, 605,
an 18 percent
increase over the 1997 threshold of P9, 843. With this threshold, a family of
five
members should have a monthly income of P4, 835 to meet its food and nonfood basic
needs. Average annual family income reached P148, 757 in 2003, increasing
by 2.5
percent over the P145,121 average in 2000. As earnings rose across all
income levels,
poverty among Filipino families dropped by almost three percentage points
from the
27.5 percent revised estimate for 2000 down to 24.7 percent in 2003 (NSCB
2005).
Unemployment and underemployment rates have increased in the past three
years.
Unemployment rate stood at 10.2 percent in October 2002, it has gone up to
10.9 percent
as of October 2004. Underemployment has also gone up from 15.3 percent in
October
2002 to 16.9 percent in October 2004. Average inflation rate has also gone
up from 3.5
percent in 2003 to six percent in 2004 (NSO 2004).
In 2003, the GDP was mainly from the service sector (43 percent), followed
by the
industry sector (31 percent) and the agriculture, fishery and forestry sector
(18 percent).
Traditionally, the economy depends on agriculture, fishing, forestry and
mining. In
recent years the service sector and the manufacturing sector have grown
rapidly. The

service sector, which include education, transportation and communication,

property,
health, housing and government services, account for the biggest sector of
the economy.
They employ the bulk of the workforce. The manufacturing sector has also
grown
rapidly, with the food and beverage, electrical and electronic components
and production
of garments, wood products and furniture as major industries. Our overseas
Filipino
workers (OFWs) have also contributed their share to the countrys economy.
From 1987
to 2002, compensation income (inflows) from overseas workers totaled
P406.2 billion or
3 percent of the totalGNPfor the period covered.
Major imports include machinery and equipment, oil and petroleum products,
chemicals
and semi-processed materials. The major trading partners of the Philippines
have
remained to be the United States, Japan, the European community and the
Association of
Southeast Asian Nations (ASEAN). China is emerging as a major trading
partner in
recent years.
6