The Services Sector in the

Philippine System of National

Accounts (PSNA)
By

MARIA FE M. TALENTO
Division Head, Economic Statistics Office

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 Outline of Presentation

I. Current PSNA
II. Scope/Coverage of the Services sector
III. Sources of Data
IV. Estimation Methodology
V. Issues/Concerns

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 Current PSNA

Measurement of GDP: 3 approaches

• Production Approach, GDP (P)

• Expenditure Approach, GDP (E)

• Income Approach, GDP (I) (compiled

annually)

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 Current PSNA
• Quarterly & Annual estimates: the PSNA
compilation uses the production &
expenditure approaches
• Both sides of the accounts are estimated
independently
• GDP growth rate is based on the
production accounts
• Constant Price estimates: uses the fixed-
based year method

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 Scope of the Services sector
• Transportation, Communications and Storage
- Land transport
- Water transport
- Air transport
- Storage and Services Incidental to Transport
- Communication
• Trade
- Wholesale
- Retail
• Finance
- Banks
- Non-banks
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 Scope of the Services sector
- Insurance
• Ownership of Dwellings and Real Estate
- Ownership of Dwellings
- Real Estate
• Private Services
- Educational
- Medical and Health
- Business
- Recreational
- Hotel and Restaurant
- Others
• Government Services
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 Main Source of Data
Census/Surveys from National Statistics
Office
- Census of Philippine Business & Industry
(CPBI)
- Annual Survey of Philippine Business
and Industry (ASPBI)
- Quarterly Survey of Philippine Business
and Industry (QSPBI)
- Quarterly Labor Force Survey (LFS)
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 Other Sources of Data
• Administrative-based data
Quarterly Financial Reports from
- Securities and Exchange Commission
(SEC) for key players of the Services sectors

TCS:
- Department of Trade and Communications
(data on the Metro Rail Transit; Light Rail
Transit Authority, Philippine National
Railways; Megatren
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 Administrative-based Data
- Civil Aeronautics Board (for local airlines)
ODRE:
- National Disaster Coordinating Council
(report on Damages of totally destroyed
houses) indicator for housing reductions

- National Statistics Office

(approved building permits for residential
construction) indicator for housing additions

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 Administrative-based Data
FINANCE:
- Bangko Sentral ng Pilipinas
(consolidated income and expense
statements of all banks)
- Insurance Commission
(income and expense statements of private
life and non-life insurance companies)
- Commission on Audit (COA)
(financial reports of Government Financial
Corporations and the Government Service
Insurance System (GSIS)

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 Administrative-based Data

PRIVATE SERVICES:
- Department of Tourism
(hotel occupancy rate)

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 Administrative-based Data
GOVERNMENT SERVICES:
- Dept. of Budget and Management
(actual cash disbursement; budget of expenditure
and sources of financing)-Quarterly

- Commission on Audit
(annual financial report for national and local gov’t )

- Social Security System and the Government Service

Insurance System (GSIS)
(annual financial reports)

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 Other Sources of Data
• Industry Associations
Private Services:
- Business Processing Association of the
Philippines (BPAP)
(data on revenues and employment of
Business Processing Outsourcing (BPO)
companies

• Report of Private Companies

- Revenue of Selected Fast-Food Chains

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 Estimation Methodology
(excluding Ownership of Dwellings & Gov’t services)

Annual Estimates: GVA at Current

1. Organized sector:
GVAO = GO – II

where: GO = Gross Output

II = Intermediate Input

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 Estimation Methodology
 Annual Estimates : GVA at Current

2. Unorganized sector:

GVAU = GVAES * (ELFS - EASPBI)

where:
GVAES = GVA per employee of small establishments from
the ASPBI
ELFS = Number of employed persons from the
Labor Force Survey (LFS)
EASPBI = Number of employed persons from the ASPBI

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 Estimation Methodology

 Annual Estimates – GVA at Current Prices

of Services:

GVAt = GVA Organized + Unorganized

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 Constant Price Estimation

-Single deflation using appropriate price

indices by sector
GVA k( O+U )
GVA K = IPIN ij

where:
IPINij = IPIN i(j-1) x Inflation Rate

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 Current Price Estimation
In the absence of annual surveys, use:

Extrapolation using output indicator (Gross

Revenue from QSPBI) year-on-year growth

GVAij = GVAi(j-1) x QSPBI(gr) ij

where:
i = ith quarter
j = jth year
QSPBI(gr) = Revenue ij / Revenue I(j-1)
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 Constant Price Estimation

TCS: CPI for transportation, CPI for

communication and CPI for storage

Trade:
Wholesale - Wholesale Price Index
Retail - Retail Price Index

Finance, Real Estate and Private

Services : - CPI all items

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 Estimation Methodology
Ownership of Dwellings:
Annual Estimates : starts at GVA Constant

GVAk = GVAk (previous year) * trend of

Housing Stocks
where:
Housing stock (in sq/m) = housing stock of the
previous year + housing additions – housing
reductions

International Workshop From Data to Accounts: Measuring Production Republic of the Philippines
in National Accounting Beijing, China NATIONAL STATISTICAL COORDINATION
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 Estimation Methodology

Housing additions = housing additions of the

previous year * trend of the building permits
(floor area)

Housing reductions = number of totally damaged

houses * 15 sq/m
(15 sq/m represents the average size of housing
units that are most susceptible to total damages)

International Workshop From Data to Accounts: Measuring Production Republic of the Philippines
in National Accounting Beijing, China NATIONAL STATISTICAL COORDINATION
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 Estimation Methodology

Annual Estimates : GVA Current

GVAt = GVAk * IPINt

where:

IPINt = IPINt-1 * trend of CPI for rentals

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in National Accounting Beijing, China NATIONAL STATISTICAL COORDINATION
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 Estimation Methodology
Government Services:
Annual Estimates : GVA at Current

GVA = CE + CCA + IT
where:
CE = compensation of employees
CCA = Depreciation
IT = Indirect Taxes

International Workshop From Data to Accounts: Measuring Production Republic of the Philippines
in National Accounting Beijing, China NATIONAL STATISTICAL COORDINATION
23 MFM Talento/ 8-10-June 2009 BOARD
 Estimation Methodology
Government Services:
Annual Estimates: GVA at Constant prices

GVAk = GVAt
average earnings index

where:
average earnings index = total compensation divided
by the number of gov’t
employees

International Workshop From Data to Accounts: Measuring Production Republic of the Philippines
in National Accounting Beijing, China NATIONAL STATISTICAL COORDINATION
24 MFM Talento/ 8-10-June 2009 BOARD
 Issues/Concerns
A. Data Problems

• Time lag and consistency of survey results

B. Coverage Issue

Emerging Industries
Births and deaths of establishments

C. Measurement Problems (Methodological)

• Measuring Quality Change

the case of high technology services
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 THANK YOU

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