As per latest reports on Philippines economic conditions it is expected that there would be slowdown as far

as nationaleconomy is concerned. However, what is encouraging for Philippines’ economic conditions is that
depreciation would be still within expectations of national government. 

A number of moves have been made by national government in order to improve economic conditions of
Philippines. It has increased amount of expenditures to a significant extent and has been outsourcing its
business activities. Amount of mining and construction for residential purposes has gone up in Philippines as
well. 

2009 fiscal is expected to bring not much of turbulence as far as economic conditions in Philippines are
concerned. It is expected that there would be an increase of 4.1 percent in gross domestic product for 2009
fiscal. However, in first quarter of 2009 rate of growth of Philippines GDP would be 3.5 percent. Philippines
government had previously estimated this rate to be within 3.7 to 4.4 percent. 

Economic conditions at Philippines in fiscal 2008 were far from ideal. Growth rate of GDP had gone down to
4.6 percent from 7.2 percent in 2007 fiscal. It is being expected that rate of inflation would go down to 6.4
percent in February 2009. It would further depreciate to reach less than 4 percent as of April 2009. 

Economists have noted that Bangko Sentral ng Pilipinas can still deduct its rates of interest for policies by as
much as 50 basis points in first quarter of 2009 fiscal. It is expected that this interest rate deduction would
be assisting weakened financial sector and overall Philippines economic conditions. 

Reports on Philippines economic conditions have confirmed that rates of interest would stay flat for first
quarter 2009 even if there are deductions on policy rates by Bangko Sentral ng Pilipinas. Much of this would
be owing to irregularities in issuance of major corporate bonds. 

It is also expected that in first quarter of 2009 fiscal exchange rate between United States dollar and
Philippines Peso would continue on its downward slope. In first quarter of 2009 fiscal 1 US dollar be worth
48.50 Philippines Peso.

Fourth Quarter 2009

PHILIPPINE ECONOMY TEPIDLY REJUVENATED
WITH 1.8 PERCENT GDP GROWTH   
Posted 28 January 2010

The recovery of the global economy from the crisis,

notwithstanding the double whammies whacked by Ondoy and
Pepeng, paved the way for a GDP growth of 1.8 percent in the
fourth quarter of 2009, bringing the full year GDP growth to
0.9 percent from 3.8 percent in 2008. Contributing to the
tepid rejuvenation of the domestic economy in the fourth
quarter are the double digit growth in retail trade, Banks &
Non Banks, recreational Services and Mining & Quarrying as
well as the recovery of the Manufacturing sector that offset
the decline by 2.8 percent of AFF.  On the demand side,
increased consumer and especially government spending for
the whole year made up for the diminished investments in
durable equipment and sustained decline in the exports
demand from our recession-stricken major trading partners.

Meanwhile, on an annual basis, GNP grew at a slower rate of 3.0 percent from 6.2 percent last year in
spite of the 20.1 percent growth in NFIA from 30.8 percent last year

For the fourth quarter, the continuing, though much decelerated demand for the services of our OFW’s
caused NFIA to grow by 7.5 percent from 51.2 percent last year, pushing GNP growth to 2.4 percent
from last year’s 6.7 percent.
The seasonally adjusted estimates of GDP and GNP confirm that the Philippine economy has recovered
from the global financial crisis as GDP inched up to 0.9 percent from 0.8 percent in the previous
quarter.

Meanwhile, the seasonally adjusted GNP sustained its 1.4 percent growth in the third quarter.

For the 4th quarter of 2009, Services showed new signs of vigor, accelerating by 4.2 percent from 1.3
percent while Industry recovered from 3 consecutive quarters of decline, growing by 1.1 percent from
5.3 percent.  However, Ondoy and Pepeng caused AFF to decline by 2.8 percent from 2.9 percent
growth last year.

The seasonally adjusted Agriculture, Fishery and Forestry sector declined by 3.3 percent from a 0.8
percent growth in the previous quarter largely due to the decline in Palay which of course suffered
greatly from Ondoy and Pepeng.  On the other hand, Industry rebounded to a 3.7 percent growth
from a 0.4 percent decline in the previous quarter due to the expansion of Manufacturing and Mining &
Quarrying.  Services sector, however, decelerated to 0.7 percent from 1.5 percent.

The domestic economy could not keep pace with the population growth in 2009 as per capita GDP
declined by 1.0 percent from a 1.8 percent growth in 2008. However, per capita GNP continues to
grow by 1.0 percent from 4.1 percent, as well as per capita PCE, by 1.8 percent from 2.6 percent.

Compensation inflow of the country’s OFWs in 2009 was US$ 25.9 billion, averaging more than US$
2B a month, a 15.6 percent increase over last year’s US$ 22.4 billion.

On the expenditure side, consumer spending accelerated slightly to 5.1 percent in the fourth quarter
of 2009 from 5.0 percent the same period last year.  Government Consumption Expenditure (GCE)
posted a double-digit growth of 12.1 percent from 2.6 percent last year due to the disbursement of
funds for relief and rehabilitation of areas affected by tropical storms Ondoy and Pepeng as well as
continued release of funds for the automated 2010 elections.

Investments in Fixed Capital Formation went down by 1.6 percent from last year’s meager growth of
0.1 percent as a result of poor investments in all of its sub sectors.  Investments in Construction
declined by 2.9 percent from a growth of 8.2 percent while investments in Durable Equipment dropped
by 0.1 percent from negative 7.9 percent in 2008. 

Total Exports went down by 10.0 percent from the negative 11.5 percent growth registered in the
fourth quarter of the previous year as both Merchandise Exports and Non Merchandise Exports
suffered reversals in growth.

Total imports went down by 2.5 percent from a growth of 5.0 percent in the previous year, as both
Merchandise Imports and Non Merchandise imports continued to decline.

The terms of trade during the quarter posted a Trade Index of 135.8 percent from 121.5 percent in
2008.  Trading Gain for the quarter amounted to P43.7 billion pesos.

GNP Implicit Price Index (IPIN) stood at 551.9 percent from 530.0 percent in the previous year or 4.1
percent inflation.

ROMULO A. VIROLA
Secretary-General, NSCB
 First Quarter 2009
PHILIPPINE ECONOMY BOOMS WITH 7.3 PERCENT GDP
GROWTH   
Posted 27 May 2010

A glorious ending for the Arroyo administration

and a beneficent beginning welcomes the Aquino
administration as GDP boomed with a growth of
7.3 percent in the first quarter of 2010 from 0.5
percent last year. Except for Agriculture which
was parched by the El Niño dry spell and the
saturated communication subsector, all
subsectors of the economy drew vigor from the
global economic recovery, election related stimuli
and the unbridled growth of income of our
OFWs.  Manufacturing rebounded astoundingly,
supported by hefty contributions from trade and
private services, particularly recreational and
business services. 

On the demand side, increased consumer and government spending boosted by the solid performance
of external trade and increased investments in fixed capital formation contributed to the highest
economic growth since the second quarter of 2007.

With the worst of the global crisis seemingly over, notwithstanding lingering concerns over the
eurozone, the sustained strong demand for the services and expertise of Filipinos abroad contributed
to the 24.9 percent growth of Net Factor Income from Abroad (NFIA) from 28.7 percent last year,
pushing GNP to grow by 9.5 percent from 3.3 percent the previous year.  This is the highest GNP
growth since the fourth quarter of 1988.

With the decline of palay, corn and sugarcane, the seasonally adjusted Agriculture, Fishery and
Forestry sector posted zero growth in the first quarter after declining by 2.8 percent in the fourth
quarter of 2009.

Industry grew impressively by 3.8 percent from an already record 6.3 percent gain in the previous
quarter.  The substantial rebound of the manufacturing sector contributed to the sustained growth of
industry.

Services sector likewise posted a 3.6 percent growth for the first quarter of 2010 after declining by 0.1
percent in the previous quarter, as private services, trade and finance sub sectors posted
substantively positive growths. 

With projected population reaching 93.3 million at a slower pace than the growth of the domestic
economy, per capita GDP grew by 5.3 from a decline of 1.4 percent.  Per capita GNP grew by 7.4
percent from 1.3 percent while per capita PCE expanded by 3.9 percent from its year ago growth of
1.0 percent.

On the expenditure side, consumer spending continued to expand in the first quarter of 2010 to 5.9
percent from 3.0 percent last year.  Government Consumption Expenditure (GCE) grew by 18.5
percent, the highest ever recorded growth, from 6.1 percent documented last year.

Investments in fixed capital formation snowballed to 15.7 percent, the highest since the fourth quarter
of 2000, from negative 7.4 percent in the same period last year. Total investments in Construction
expanded by 8.2 percent from 6.5 percent while Investments in Durable Equipment rebounded to 25.0
percent from negative 18.5 percent a year ago.
Total Exports surged to 17.9 percent from negative 14.6 percent last year as Merchandise Exports
registered double-digit growth in the first quarter of 2010.

Total imports grew by 20.3 percent from negative 11.2 percent in the previous year largely attributed
to the positive performances of both Merchandise imports and Non Merchandise Imports.

The terms of trade during the quarter posted a Trade Index of 109.4 percent from 105.8 in 2009. 
Trading gains f or the quarter amounted to 13.4 billion pesos.

GNP Implicit Price Index (IPIN) stood at 536.5 percent from 516.6 percent in the previous year or a
3.85 percent inflation.

ROMULO A. VIROLA
Secretary-General, NSCB

 First Quarter 2010

Gross National Product & Gross Domestic Product

Per Capita
Gross Domestic Product, Gross National Product and
Personal Consumption Expenditure 

With projected population reaching 93.3 million at a slower pace than the growth of the domestic
economy, per capita GDP grew by 5.3 from a decline of 1.4 percent.  Per capita GNP grew by 7.4
percent from 1.3 percent while per capita PCE expanded by 3.9 percent from its year ago growth of
1.0 percent.

PER CAPITA: GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT,

and PERSONAL CONSUMPTION EXPENDITURE

1st Quarter 2009 and 1st Quarter 2010

AT CURRENT AND CONSTANT 1985 PRICES, IN PESOS

Growth Rate
TYPE OF EXPENDITURE Q1 2009 Q1 2010
(%)

A. Estimates in current pesos      

   1. GROSS DOMESTIC PRODUCT 18,952 20,743 9.5

   2. GROSS NATIONAL PRODUCT 21,510 23,992 11.5

   3. PERSONAL CONSUMPTION EXPENDITURE 14,055 15,238 8.4

       

B. Estimates in constant (1985) pesos      

   1. GROSS DOMESTIC PRODUCT 3,651 3,843 5.3

   2. GROSS NATIONAL PRODUCT 4,164 4,472 7.4

   3. PERSONAL CONSUMPTION  EXPENDITURE 2,855 2,967 3.9

        

C. Population*    (million persons) 91.6 93.3  

       

* - The quarterly estimates were interpolated from the 2000, 2005 and 2010 midyear estimates from the 2000 census-
based population projections using the Waring-Langrange interpolation polynomial.

PER CAPITA: GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, 

and PERSONAL CONSUMPTION EXPENDITURE

Annual 2008 and 2009

AT CURRENT AND CONSTANT 1985 PRICES, IN PESOS

Growth Rate
ITEM 2008 2009
(%)

A. Estimates in current pesos      

   1. GROSS DOMESTIC PRODUCT 81,910 83,261 1.6

   2. GROSS NATIONAL PRODUCT 91,330 95,525 4.6

   3. PERSONAL CONSUMPTION
58,382 61,533 5.4
EXPENDITURE

       

B. Estimates in constant (1985) pesos      

  1. GROSS DOMESTIC PRODUCT 15,666 15,528 -0.9

  2. GROSS NATIONAL PRODUCT 17,590 17,944 2.0

  3. PERSONAL CONSUMPTION 
12,244 12,498 2.1
EXPENDITURE

       

C. Population*
90.5 92.2  
   (million persons)

* - 2000 Based Population Projections, National Statistics Office