NSCB - NSCB Technical Notes on the Estimates of the Philippine System of National Accounts (PSNA) Series 2005-Q4

NSCB Technical Notes on the Estimates of
the Philippine System of National Accounts (PSNA) Series 2005-Q4
(posted 13 March 2006)

Technical notes on the PSNA are published in the NSCB website for a better appreciation of our national accounts. Reference should also be made to the earlier technical notes for the current national accounting practices adopted in the Philippines.

Data Sources for Q4 2005

The fourth quarter Quarterly National Accounts (QNA) has a lag of only 30 days from the reference quarter while the other releases of the QNA have a lag of about sixty days from the reference quarter. As such, some of the data usually available for the quarterly estimation are unavailable during the Q4 estimation. The National Statistics Office (NSO), however, was able to provide NSCB the 15-day results of the Quarterly Survey of Philippine Business and Industry (QSPBI), the 15-day results of the Building Permits and the results of the November 2005 Monthly Integrated Survey of Selected Industries (MISSI) for the Q4 estimation. Similarly, the Department of Budget and Management (DBM) and the Philippine Overseas Employment Administration (POEA) were able to provide the full quarter data for government expenditures and deployment of Overseas Filipino Workers (OFW), respectively. Indicators are used to estimate movements for some sectors.

Non-factor Services Export/Import –

Non-factor services cover the transactions/purchases of services between residents of the compiling country and the rest of the world (ROW) and include only the non-compensation component. Compensation inflow/outflow (from/to the ROW) is recorded under the Net Factor Income from Abroad (NFIA).

The scope and coverage of non-factor services involve the concept of residence, which was discussed in technical notes series 2005-Q1

In the present PSNA, non-factor services includes the following:

Transportation services – cover all transportation services performed by a resident of an economy for those of another. Included here are the passenger fare, charges for excess baggage, expenditures of food and other items while on board international carriers, freight services (on goods exported) , operational lease/rental of carriers and a wide range of services provided in airports, ports and other terminal facilities such as cargo handling, storage and warehousing, among others.

The airfare of foreign tourists traveling to Philippines via Philippine Airlines (PAL) is treated as our export of transportation services. Rental of PAL for an aircraft with its crew from a foreign airline for a limited time to address big volume of passengers is considered as our import of transportation services (operational lease/rent).

Communication services – cover postal, courier, and telecommunication services. The live broadcast via satellite in the Philippines of boxing matches held abroad (Pacquiao-Morales rematch in the US) is part of our import of communication services.

Insurance services – cover freight insurance (on goods exported), life and non-life insurance, and services for reinsurance.

Travel – covers the expenditure for goods and services by travelers in an economy during their visits in that economy. Expenditures of Filipino tourists abroad are part of our travel imports while expenditures of foreign tourists here in the Philippines are considered as our travel exports.

Government services – cover all services related to the government sector such as the expenditures of embassies and consulates.

Miscellaneous Services - are other services not covered above and include construction services, financial services, computer and information services (i.e. services of call centers), royalties and license fees, personal, cultural and recreational services, and other business services (i.e. medical transcription, animation and software development, among others)

Revisions for Q3 2005

Based on the Revision Policy approved by the NSCB Executive Board and consistent with the international practice on the revision of National Accounts, the following are the corrections and revisions in our previous estimates, based on the revisions and updates made by the data sources themselves, including those made by NSO on Exports, Imports, MISSI, QSPBI, Building Permits, WPI, RPI and FTS; BSP on the BOP; the DOE and MGB for Mining and Quarrying; additional Financial Statements from source companies for ODRE; DBM and DOF for Construction; COA, DBM for Government Consumption; as well as POEA for NFIA; BAS, SRA, NIA & FMB for Breeding Stocks & AFF; PhilCemcor for Manufacturing; and Financial Statements from PSE for Finance.

For the third quarter, the following revisions were made:
On the production side,

AFF upward from – 1.8% to – 1.9%
Mining and quarrying upward from – 3.2% to – 3.5%
Manufacturing upward from - 5.5% to 5.7%
Construction upward from - 3.0% to 1.1%
Finance upward from - 11.1% to 12.3%
Trade upward from - 4.9% to 5.1%
Finance upward from - 15.6% to 19.3%
Private Services upward from - 3.1% to 3.2% and
ODRE downward from - 4.2% to 4.0%
TCS downward from - 5.2% to 4.2%
Government services downward from – 1.1% to –1.2%

On the expenditure side,

Construction upward from – 4.4% to –0.1%
Government Consumption upward from –2.1% to –2.0%
Breeding Stocks upward from 2.0% to 2.6%
Imports upward from 7.5% to 7.7%
Exports downward from 3.9% to 3.5%
Durable Equipment downward from –3.9 % to –4.5% and
NFIA downward from 38.7% to 27.5%

As a result of all the revisions for the third quarter, GDP growth was revised upward from 4.1% to 4.5% while GNP growth was revised downward from 6.5% to 6.1%. A more complete tabulation of our revisions is included in our publication.

For inquiries please contact Dir. Raymundo J. Talento at (632) 895-2481 or
e-mail him at rj.talento@nscb.gov.ph.

References:

Issues Paper Balance of Payments Technical Expert Group (BOPTEG) #8 Residence of Households by Robert Dippelsman, IMF Statistical Department, May 2004 (http://unstats.un.org).

Issues Paper Balance of Payments Technical Expert Group (BOPTEG) #8A Residence of Households by International & Financial Accounts Branch, Australian Bureau of Statistics, May 2004 (http://unstats.un.org).

System of National Accounts 1993, by Eurostat, IMF, OECD, U.N., WB, 1993.

Technical Notes on the 2003-2004 BOP Revisions by Bangko Sentral ng Pilipinas, April 2005 (http://www.bsp.gov.ph)


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