Current GDP of the Philippines

by Gily Tenorio on December 19, 2011

in Investment

How does an economist determine whether a country is rich or poor? Since I was a child, I always hear from the news and adult people that the Philippines is a “poor country”. The common people would definitely agree with this claim since they are the ones that really experienced how hard it is to live in the Philippines. I assume you are aware about the increasing numbers of Overseas Filipino Workers (OFW) which is related to high unemployment condition in our country and the continuing increase of poor all over the country.

There are many gauges that experts used to determine the economic condition of a country. The most common ways are GDP per capita, the size of economy of the country, the income per capita, the number of companies and size of investment and many other factors.

What is GDP?

Gross Domestic Product or GDP is the market value of all goods and services produced within a country in a given year or period. It is the sum of gross value added of all resident institutional units engaged in production plus any taxes, and minus any subsidies, on products not included in the values of their outputs. GDP per capita is normally used to gauge the standard of living in a country. The table below shows GDP and Gross National Income (GNI) for the 2nd quarter of 2010 and second quarter of 2011 by industry. Figures are in million pesos.

At Current Prices

INDUSTRY/INDUSTRY GROUP Q2 2010 Q2 2011 Growth Rate
(%)
Agriculture, Hunting, Forestry
and Fishing
245,273 288,874 17.8
Industry Sector 741,617 765,217 3.2
Service Sector 1,258,907 1,377,527 9.4
GROSS DOMESTIC PRODUCT 2,245,797 2,431,618 8.3
Net Primary Income 773,745 775,557
GROSS NATIONAL INCOME 3,019,542 3,207,175 6.2

At Constant 2000 Prices

INDUSTRY/INDUSTRY GROUP Q2 2010 Q2 2011 Growth Rate
(%)
Agriculture, Hunting, Forestry
and Fishing
148,896 159,517 7.1
Industry Sector 489,793 487,030 -0.6
Service Sector 814,702 855,822 5.0
GROSS DOMESTIC PRODUCT 1,453,390 1,502,368 3.4
Net Primary Income 474,051 460,909
GROSS NATIONAL INCOME 1,927,441 1,963,278 1.9

 

How to Determine GDP?

GDP can be calculated in three different methods but all should give the same result: product (or output) approach, the income approach, and the expenditure approach. The product approach sums the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the idea that all of the product must be purchased by somebody, thus the value of the total product must be equal to people’s total expenditures in purchasing products. The income approach deals with the principle that the incomes of the productive factors should be the same with the value of their product, and calculates GDP by getting the sum of all producers’ incomes.

 

Reference: National Statistical Coordination Board (NSCB) & Wikipedia

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