GROSS NATIONAL PRODUCT AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN: Annual 2007 and 2006 AT CURRENT AND

CONSTANT 1985 PRICES, IN MILLION PESOS

AT CURRENT PRICES INDUSTRY 2006 2007 Growth Rate (%) 9.6

AT CONSTANT PRICES Growth Rate (%) 5.1

2006

2007

AGRI.FISHERY,FORESTRY

855,452

937,342

239,837

252,010

INDUSTRY SECTOR

1,907,980

2,082,735

9.2

414,931

442,352

6.6

SERVICE SECTOR

3,269,192

3,631,243

11.1

621,667

675,656

8.7

GROSS DOMESTIC PRODUCT

6,032,624

6,651,320

10.3

1,276,435

1,370,018

7.3

Net factor income from the rest of the world

537,687

623,340

123,092

138,600

GROSS NATIONAL PRODUCT

6,570,310

7,274,660

10.7

1,399,527

1,508,618

7.8

GROSS NATIONAL PRODUCT AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARES: Annual 2007 and 2006 AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

AT CURRENT PRICES TYPE OF EXPENDITURE 2006 2007 Growth Rate (%) 9.2

AT CONSTANT PRICES Growth Rate (%) 6.0

2006

2007

Personal Consumption Expenditure

4,226,120

4,615,831

999,217

1,059,466

Government Consumption

587,463

654,132

11.3

81,371

89,523

10.0

Capital Formation

864,531

980,002

13.4

219,286

239,667

9.3

Exports

2,797,986

2,729,849

-2.4

629,093

648,297

3.1

Less : Imports

2,873,562

2,778,645

-3.3

655,791

620,329

-5.4

Statistical discrepancy

430,086

450,151

3,258

-46,605

GROSS DOMESTIC PRODUCT Net factor income from the rest of the world GROSS NATIONAL PRODUCT MEMORANDUM ITEMS: Trading gain (loss) from changes in the terms of trade Gross National Income

6,032,624

6,651,320

10.3

1,276,435

1,370,018

7.3

537,687

623,340

123,092

138,600

6,570,310

7,274,660

10.7

1,399,527

1,508,618

7.8

9,720

-39,045

1,409,247

1,469,573

GROSS NATIONAL PRODUCT AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN: Annual 2008 and 2009 AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

At Current Prices INDUSTRY/INDUSTRY GROUP 2008 2009 Growth Rate (%) 3.8

At Constant Prices Growth Rate (%) 0.1

2008

2009

Agri. Fishery, Forestry

1,102,756

1,144,615

259,406

259,573

Industry Sector

2,349,426

2,295,126

-2.3

465,017

455,784

-2.0

Service Sector

3,971,031

4,229,402

6.5

694,529

716,621

3.2

GROSS DOMESTIC PRODUCT Net factor income from the rest of the world GROSS NATIONAL PRODUCT

7,423,213

7,669,144

3.3

1,418,952

1,431,978

0.9

827,036

1,031,679

168,845

202,704

8,250,249

8,700,822

5.5

1,587,797

1,634,682

3.0

GROSS NATIONAL PRODUCT AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARES: Annual 2008 and 2009 AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

AT CURRENT PRICES TYPE OF EXPENDITURE 2008 2009 Growth Rate (%) 7.5 2008

AT CONSTANT PRICES Growth Rate (%) 3.8

2009

Personal Consumption Expenditure

5,281,072

5,675,066

1,107,569

1,149,828

Government Consumption

716,544

813,824

13.6

93,746

101,753

8.5

Capital Formation

1,131,490

1,070,787

-5.4

256,244

230,906

-9.9

Exports

2,736,310

2,401,580

-12.2

663,324

569,294

-14.2

Less : Imports

2,872,572

2,341,600

-18.5

643,572

606,283

-5.8

Statistical discrepancy

430,370

49,487

-58,360

-13,519

GROSS DOMESTIC PRODUCT

7,423,213

7,669,144

3.3

1,418,952

1,431,978

0.9

Net factor income from the rest of the world

827,036

1,031,679

168,845

202,704

GROSS NATIONAL PRODUCT MEMORANDUM ITEMS: Trading gain (loss) from changes in the terms of trade Gross National Income

8,250,249

8,700,822

5.5

1,587,797

1,634,682

3.0

-51,282

51,118

1,536,515

1,685,800

GROSS NATIONAL PRODUCT AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN: Annual 2009 and 2010 AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

At Current Prices INDUSTRY/INDUSTRY GROUP 2009 2010 Growth Rate (%) 3.9 14.9 10.6 2009

At Constant Prices 2010 Growth Rate (%) -0.5 12.1 7.1

Agri. Fishery, Forestry Industry Sector Service Sector

1,138,334 2,318,882 4,221,702

1,182,374 2,663,497 4,667,166

259,424 460,205 712,486

258,081 515,751 763,320

GROSS DOMESTIC PRODUCT Net factor income from the rest of the world GROSS NATIONAL PRODUCT

7,678,917 1,131,067 8,809,984

8,513,037 1,237,157 9,750,193

10.9

1,432,115 222,821

1,537,152 236,198 1,773,350

7.3

10.7

1,654,936

7.2

GROSS NATIONAL PRODUCT AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARES: Annual 2009 and 2010 AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

AT CURRENT PRICES TYPE OF EXPENDITURE 2009 2010 Growth Rate (%) 9.1

AT CONSTANT PRICES Growth Rate (%) 5.3

2009

2010

Personal Consumption Expenditure

5,674,966

6,192,862

1,152,658

1,214,005

Government Consumption

809,688

884,276

9.2

101,163

103,886

2.7

Capital Formation

1,124,644

1,329,737

18.2

243,052

284,280

17.0

Exports

2,431,373

3,098,149

27.4

574,284

721,533

25.6

Less : Imports

2,364,761

2,881,295

21.8

621,543

750,201

20.7

Statistical discrepancy

3,007

-110,692

-17,499

-36,351

GROSS DOMESTIC PRODUCT Net factor income from the rest of the world GROSS NATIONAL PRODUCT MEMORANDUM ITEMS: Trading gain (loss) from changes in the terms of trade Gross National Income

7,678,917

8,513,037

10.9

1,432,115

1,537,152

7.3

1,131,067

1,237,157

222,821

236,198

8,809,984

9,750,193

10.7

1,654,936

1,773,350

7.2

63,868

83,904

1,718,804

1,857,254

Blessy Marie P. Crisostomo 2-DAC Econ01 Sept. 9, 2011

GROSS NATIONAL PRODUCT AND GROSS DOMESTIC PRODUCT ANALYSIS FOR YEARS 2006 TO 2011

Gross National Product is a measure of a countrys output of final goods and services for an accounting period in terms of its market and consumers value. It is the market value of all products and services produced in one year by labor and property supplied by the residents of a country. On the other hand, Gross Domestic Product refers to the market value of all final goods and services produced in a country in a given period. It is often considered as an indicator of a country's standard of living.

GNP Analysis:

It is evident in the data provided that in all of the five years, there was an increase in the countrys Gross National Product (GNP) by industrial origin. In 2007, the GNP growth rate increased by 10.7% compared to the GNP in 2006. The service sector having contributed the largest amount in the increase in GNP has a percentage increase of 11.1%. The GNP by expenditure shares also increased by 10.7% at current prices even though there was a decrease of 2.45 and 3.35 in exports and imports, respectively. There was still an increase in GNP by expenditure shares due to the big increase of 13.4% in capital formation. In 2009, GNP by industrial origin only had an increase of 5.5% and this is because there were only slight increases in both Agricultural sector and Service sector and a decrease of 2.3% in the Industry sector. The GNP by expenditure shares in 2009 there was also an increase of 5.5% even though there was a decrease in capital formation, exports and imports by 5.4%, 12.2% and 18.5%, respectively. There was an increase because there was still a big increase in government consumption of 13. 6% and 7.5% in personal consumption expenditure.

The GNP by industrial origin in 2010 increased by 10.7%. This is because there was increase in all the three sectors especially in the industry sector which increased by 14.9%. This is due to the foreign investors coming to out country.

GDP Analysis:

The Gross Domestic Product (GDP) in 2006 and 2007 increased by 10.3%. The service sector increased by 11.1% which is caused by the income tax returns of professionals offering different types of services. In 2008 and 2009, GDP increased by a minimal percentage of 3.3%. GDP in years 2009 and 2010 increased by 10.9% at current prices. This is due to the big increases in the Industry sector of 14.9% and 10.6% in the service sector.

Both GDP and GNP are just instruments used by economists to measure the countrys economic stand. But it cannot indicate the certainty of whether the country really has an improving economy or not. Because the GDP and GNP still involves the inflation rate of goods and services. If the price of products is increasing then GDP and GNP will also increase but it does not always indicate a better economy. For me, a better economy is an economy wherein only a few number of people live below the poverty line. A better economy is a state wherein people can afford basic needs such as shelter, water, and food. A better economy leads to the betterment of each Filipino.