Technical Papers

NATIONAL STATISTICAL COORDINATION BOARD February 2001 No. 2001-001

REBASING, LINKING AND

CONSTANT PRICE ESTIMATION
OF THE NATIONAL ACCOUNTS
OF THE PHILIPPINES

Dr. Romulo A. Virola, Estrella V. Domingo and Vivian R. Ilarina

REBASING, LINKING AND CONSTANT PRICE ESTIMATION OF THE
NATIONAL ACCOUNTS OF THE PHILIPPINES1
By Romulo A. Virola, Estrella V. Domingo and Vivian R. Ilarina2

I. INTRODUCTION

The System of National Accounts (SNA) is widely recognized as a powerful tool for
monitoring the performance of an economy. The SNA provides a comprehensive accounting
framework within which economic data can be compiled and presented for purposes of
economic analysis, decision making and policy making. The popular use of the accounts by
government planners at the national and sub-national levels as well as by decision makers and
researchers from the private sector leads to increased pressure on the compilers of the
accounts to come up with timely and reliable national and sub-national accounts estimates on
a regular basis. Towards a meaningful analysis of the economic performance over time,
users demand longer time series data that are comparable and linked on a regular basis.
Moreover, the current pace of development results in structural changes that call for a re-
examination of the constant price estimation methodologies to enable it to capture rapid
changes in quality and the technology used in production, as well as to reflect a more recent
base year.

This paper discusses the following aspects of the Philippine System of National
Accounts (PSNA) : a) constant price estimation; b) rebasing procedures; c) linking of the
series; and d) the quarterly and regional accounts. An indicative program of activities on
improving the linked PSNA series is also presented.

I.a. History of PSNA Compilation

The PSNA has been continuously compiled for more than fifty years now. The first
attempt to estimate the national income accounts was in 1947 when the Joint Philippine
American Finance Commission undertook the preparation of the estimates for the years 1938
and 1948 to analyze the economic situation of the country and to assess the rehabilitation
program requested by the Philippine government from the United States.

1
A country paper prepared for the Joint ADB-UN ESCAP Inception Workshop on Rebasing and Linking
National Accounts Series, Bangkok, Thailand, March 21-24, 2000.
2 Secretary-General, Director and Statistical Coordination Officer V , respectively, of the National
Statistical Coordination Board (NSCB) of the Philippines.
1
 In 1950, the Department of Economic Research (DER) of the Central Bank came up
with the first series for 1946 to 1950. Like the first estimates, the compilation was based
solely on the final value of goods and services produced. In 1952, the DER adopted the
double entry method of recording economic transactions and released a new national income
series for the period 1946 to 1951. Using this method, the DER compiled another series
covering the period from 1952 to 1956.

In 1957, the responsibility of national income estimation was transferred to the Office
of the Statistical Coordination and Standards (OSCAS) of the National Economic Council
(NEC). During this time, the importance of national income accounts gained increased
recognition in major areas like: a) the formulation of policies as well as the preparation and
assessment of development plans; and b) the development and coordination of a sound
statistical system as the preparation of the accounts would point out data gaps and
weaknesses of existing statistical series. Under the OSCAS, the PSNA was being compiled in
a manner aligned with the UN Guidelines2 and national income series estimates were
generated for the period 1956 to 1967. The first revision of the accounts was undertaken by
the OSCAS in 1968 shifting the base year from 1955 to 1967 and producing the 1946-1967
series. Semestral national accounts were produced in 1972 covering the period 1967-72.

The National Economic Development Authority (NEDA) was created in 1973 as the
successor of the NEC and continued the task of compiling the national income accounts,
thru its National Accounts Staff. Under the NEDA, the growing demand for useful
information for planning, policy formulation, analysis and decisionmaking became a major
concern. In response to this, the PSNA was expanded to include Gross Regional Domestic
Product Accounts (GRDP) and Quarterly National Accounts, which were started in 1974 and
1983, respectively. With the enhanced use of the accounts, the reliability and validity of the
accounts became major concerns of the compilers that led to the initiation of programs and
activities for revisions and improvements of the accounts.

Improvement efforts continued until the government re-structuring of the Philippine

Statistical System (PSS) took place in 1987. By virtue of the Executive Order No. 121, the
Statistical Coordination Office was detached from NEDA and became the National Statistical
Coordination Board (NSCB) which took over the task of compiling and maintaining the

2
United Nations, A System of National Accounts and Supporting Tables, 1953.
2
PSNA. Under the NSCB, the third revision of the accounts was started in 1990 together with
the compilation of the accounts on factor shares by institution and on the relations among the
national accounts aggregates as well as the table on principal indicators. In 1987, the
compilation of the Gross Regional Domestic Expenditures (GRDE) started. In 1993,
deseasonalized estimates of national accounts aggregates were released and in 1996,
confidence interval estimates of quarterly GDP growth rates became a regular feature of the
PSNA. An outline of the milestones in the history of the PSNA is shown in Appendix 1.

I.b. General Features of the Present PSNA

With the changing structure of the economy and expansion in the available data
system, the PSNA has undergone continuing improvements to make it more responsive to
the needs of development planning and policy formulation. As compiler of the PSNA, the
NSCB has been continuously improving the PSNA particularly in trying to adopt
international guidelines in the compilation of national accounts the latest of which is the 1993
System of National Accounts (SNA), to be able to make the accounts more relevant to the
emerging concerns of development planners and policymakers.

The features of the present PSNA took off from the latest revision of the PSNA which
was launched in 1990 and completed in 1995. This is characterized by the shift of the base
year from 1972 to 1985 and the adoption of the recommendations of the 1968 United Nations
System of National Accounts (UNSNA) and in a limited scale, also adopting the preliminary
recommendations of the 1993 SNA. The efforts made to closely adhere to the 1968 UNSNA
and the availability of new and better information made possible further articulation of
transaction flows through additional accounts. Specifically, it has provided for the
Consolidated Accounts of the Nation which include the Gross Domestic Product and
Expenditure Account, National Disposable Income and its Appropriation Account, Gross
Accumulation Account and the External Transaction Account. At the same time, the present
PSNA has incorporated an income and outlay account for each of the four institutional
sectors - private corporations, public corporations, general government, household and
unincorporated enterprises. In addition, it also shows estimates of GDP by factor shares
which are also estimated and shown separately for each of the economic activities and
institutional sectors.

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 Towards implementation of the 1993 SNA, the Philippines thru the NSCB benefits
from a grant of the Asian Development Bank (ADB) Technical Assistance on the
Institutional Strengthening of the Philippine System of National Accounts. An initial activity
undertaken under the technical assistance was an assessment of the problems in the
implementation of the 1993 SNA recommendations which took into account the requirements
of the 1993 SNA and the capability of the PSNA to adopt them. This process helped in the
formulation of a program on how the Philippines will implement the 1993 SNA. The
implementation of the 1993 SNA in the Philippines presently focuses on the development of
the sequence of accounts for the institutional sectors including a computerized system for
compiling these accounts.

I.c. The General Methodology of Compiling the Gross Domestic Product (GDP)

The succeeding sections discuss the general methodology for the compilation of GDP
including the general procedures for estimating constant price GDP.

I.c.1. GDP At Current Prices

The gross value added (GVA) for each sector/subsector of the economy is estimated
using the production approach, by deducting from the gross value of output , the aggregate of
non-factor costs or intermediate inputs such as raw materials and supplies, containers and
packing materials, fuels, advertising fee and other non-industrial overhead costs. The
production approach is generally applied during the benchmark years for most of the sectors
with complete production data on output and inputs, mostly from censuses / surveys of
establishments and financial statements. The same approach is likewise adopted when
estimates are updated/revised when establishment data become available.

The above procedure for estimating the GVA implies the availability of data on gross
output and intermediate inputs for every accounting period. Invariably, however, only
production data are available for the current period. In such situations, gross value added
ratios(GVAR) derived from the most recent cost of production studies and updated utilizing
relative prices of output and inputs are applied to current period estimates of gross output to
arrive at the required estimate of GVA. This procedure is generally adopted except for

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Electricity, Gas and Water and Government Services which directly estimates GVA by its
factor shares.

I.c.2. GDP at Constant Prices

Estimates of GVA at constant prices apply the deflation method for all the sectors.
This method adopts the single deflation method by dividing the current price estimates of
GVA by the appropriate price deflators. All the sectors except the Government Services and
Construction use output deflators. In the case of Government Services and Construction,
input deflators, specifically wage rate index and composite input index are used. Appendix 2
shows the deflators used by sector.

I.d. Problems and Issues on Constant Price Estimation

In constant price estimation, the deflators used and the constant price methodologies
used for certain sectors have affected the accuracy of the PSNA estimates. Some of these
problems are:

a) Quality of the price data series used as deflators for the accounts.

Available price data are generated from regular surveys of the Bureau of Agricultural
Statistics (for agricultural commodities) and the National Statistics Office (for non-
agricultural commodities). With improvements done on these price surveys, changes in
available price data and price series were affected. For example, in 1995, the expansion in
the coverage of the farm price survey to include prices for large animals ( such as carabao
and cattle) resulted in the discontinuance of the price series for large animals taken from
auction markets. The NSCB staff had to link the two sets of prices for comparability and
consistency.

Existing price data do not cover all commodities. For example, for manufactured
commodities, there are no available prices for microcircuits (used for computers) considering
that such commodity accounts for seventy percent of the total electrical machinery. With
this, trends of proxy prices are used instead. For microcircuits for computers, substitute
prices of radio, television and communication equipment are used. In the case of farm prices

5
of large animals, prior to the conduct of farm price survey for these animals starting in 1995 ,
trends of auction prices adjusted for transport and freight mark-ups were used.

b) Appropriateness of using output and input price deflators for estimating constant GVA.

Conceptually, constant GVA is equal to the difference between output at constant prices
and intermediate inputs at constant prices, which is derived through the process of double
deflation. Presently, however, due to data limitations, all sectors now follow the single
deflation technique where GVA at current prices is deflated using output deflators except for
government services and construction which use input deflators. This assumes that prices of
output and prices of inputs move in a parallel trend which is not necessarily the case,
particularly for sectors like agriculture. Thus, the use of single deflation raises validity issues
in sectors like agriculture where prices of inputs may behave differently from prices of
output. The lack of updated cost structure data and of input prices for the sector does not
allow the use of double deflation .

c) Base year for some price series are not synchronized with the PSNA base year.

While the present base year for the PSNA is 1985, the available price indices have
varying base years. For instance, the consumer price index (CPI) is based 1994 and the
wholesale price index(WPI) is based 1985. For the estimation of the accounts, sectoral
estimates make adjustments on the available price indices by rebasing the available price
indices to 1985 by "splicing" as explained in the rebasing methodology section later.

d) Price indices used as deflators are base-year weighted.

Due to data limitations, all price indices are base year weighted instead of current year
weighted. In using base year weights, the resulting trend of the price indices fails to account
for the changing structure of the commodity composition of the index since the weights still
follow the commodity composition of the index during the base year. For example, the
export price index of merchandise exports like coconut, sugar, etc. still takes into account
the substantial contribution to export of such commodities during the base year (1985) which
has been significantly reduced. Similarly, the entry of new export commodities in the basket
of merchandise exports is not provided appropriate weights.

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e) Lack of proper price deflator to use.

For the agriculture sector, the Producers’ Price Index (PPI) for the sector is appropriate.
However, at present, these are available only on a semestral basis without the quarterly
breakdown needed in the quarterly national accounts. As a consequence, the available
quarterly farm prices are used as proxy for the PPI. Similarly, the manufacturing sector
continues to use the WPI as proxy deflator for the PPI.

f) Difficulty in measuring quality change

For a number of deflators such as those used in foreign trade, changes in the index
generally reflect both price and quality change. As a result, the constant price estimates do
not capture changes due to improvement in product/service quality.

II. REBASING OF GDP

II.a. History of the Rebasing of GDP

The PSNA has undergone four rebasings/revisions. In general, rebasing of the PSNA
is done simultaneously with the overall revision of the accounts. Rebasing of the PSNA is
generally directed through a statistical policy resolution ( issued now by the NSCB Executive
Board) and includes the rebasing of other statistical series as well.

The first constant price estimation of the PSNA was attempted in 1950 with 1955 as the
base year. The first rebasing was completed on August 30, 1968, changing the base period
from 1955 to 1967 for the national accounts series from 1946 to 1967. In 1976, the second
rebasing shifted the base year from 1967 to 1972 which coincided with the preparation of the
Manual on Sources and Methods for the National Accounts. Estimates for 1967-72 and 1971-
72 with 1972 as base year were produced but the two series were not comparable because of
the changes in sources and methods.

However, on February 12, 1973, revised and comparable estimates for 1967-72 were
completed. The sources and methods used in the revision integrated the piecemeal
improvements previously made and a few new ones. The significant revisions that were

7
adopted in the 1973 revisions were: use of the 1968, 1969 and 1970 Annual Survey of
Manufactures and quarterly surveys to update the series; improvements in deflators such as
salary rate index instead of the CPI for Government Services and Government Consumption
Expenditures; wage rate index for GVA of Construction, etc.; use of income elasticity for
PCE; and improvements in coverage of Insurance and Non-Banks.

A new series of the National Accounts of the Philippines was completed in September
1976 after an intensive program of overall revision was launched in early 1975 to make the
national and regional accounts responsive to the needs of development planning and policy
formulation. Among others, the revision shifted the base year from 1967 to 1972 in
compliance with NEDA Resolution No. 8, series 1976, requiring all statistical series to be
rebased to 1972.

After the 1976 revision, efforts continued towards the improvement of the PSNA. In a
workshop held on December 12, 1985, a proposal for a comprehensive approach to revise the
PSNA was presented. The proposed revisions considered recommendations of the 1971, 1976
and 1982 PSNA workshops and the 1968 UNSNA. The program included changing the base
year from 1972 to 1985 in response to a resolution by the Statistical Advisory Board (SAB),
the forerunner of the NSCB Board, prescribing the shift from 1972 to 1985 of the national
accounts and other statistical series. The revision, which was started in 1990 and completed
in 1995, took into account the series of recommendations in the previous PSNA workshops
(1971, 1976, 1982 and 1985) as well as the recommendations in the 1968 UNSNA and to a
limited extent the 1993 SNA.

The NSCB Resolution No. 6 series of 1991, approved in July 1991, requires that the
next synchronized rebasing of all price indices shall have 1994 as the base year. The NSCB is
currently drawing up its plans to do a revised-rebased PSNA series with 1994 as base year.

II.b. The Choice of the Base Year

The base year should of course be a “normal” year. A normal year is theoretically
characterised as having a relatively stable economy, where there are no irregular or unusual
occurrences or undue fluctuations in the prices of commodities during the entire year.
Although there are no established criteria of a normal year, the economy during the base
period should be in close equilibrium or not obviously in violent disequilibrium. These
8
considerations cannot be made very precise and in practice, are not very easy to tell. The
rational thing to do is to avoid periods which are clearly dominated by exceptional events
such as elections, stockmarket crash, general strike, price control and other institutional
events that affect prices and production.

The PSNA considers other criteria in choosing the base year, one of which is the
availability of data such as establishment and household censuses and surveys, price indices
and other related data needed to develop benchmark estimates for the PSNA. The NSCB
likewise considers to the extent possible, the UN recommendation that the base year should
not be too far from the previous base year, say five to ten years separating them.

II.c. Methodology In Rebasing

As mentioned previously, the rebasing of the PSNA generally coincides with the overall
revision of the accounts. The latest rebasing of the PSNA, the shift from 1972 to 1985,
covered the period from 1980 to 1990.

Under the rebasing methodology followed, the current price estimates of GDP and
GNP by sectors/subsectors are first revised given the identified changes in data, concepts,
coverage and methodology.

The implicit price deflator for each subsector is then estimated based on available
price series data. Most production sectors use output deflators except for Government
Services and Construction which use wage rates as input deflators. For the expenditure
items, the CPI is generally used. Since some of the price indices used have been rebased to
1985, these price indices were used directly as deflators. Otherwise, the price series had to be
rebased to 1985 which in practice is done simply by "splicing". For example, the CPI for
year Y at 1994 prices is spliced by dividing the 1994 – based CPI for year Y by the 1994-
based CPI for 1985 to derive the 1985-based CPI for year Y.

Given the current estimates and the price deflators, the constant price estimates for
1980 to 1990 are derived by simply dividing the current price estimates by the corresponding
1985-based price deflators. This process is applied on a subsectoral / sectoral basis,
whichever is appropriate.

9
 To estimate the rebased-revised PSNA series for the period prior to 1980 at current
prices, estimates from 1946 to 1980 (1972=100) were linked to the 1980-1990 revised series
(1985=100) by splicing. The splicing is implemented by applying/assuming the growth rates
for the period for which new backward estimates are to be made. This is done by applying
the 1979-1980 growth rate on the 1980 estimate to derive the backward estimate for 1979,
and so on.

The 1946-1980 revised current price estimates are deflated using price deflators for
said period. These price deflators are the results of linking by splicing the 1946 to 1980 price
deflators with the revised 1980-1990 price deflators. The current estimates are simply
divided by the price deflators to come up with the revised 1946-1980 revised constant price
estimates.

II.d. Problems and Issues In Rebasing, Some Solutions Proposed/Adopted.

1. The problem that has always been raised during rebasing is the choice of the base year.
The choice of the 1985 as the base year was questioned because it was later noted that this
year was an abnormal year , or at least not a normal year so that it may not provide a
good benchmark for analysis. The NSCB Technical Staff will soon recommend that a
new base year for the National Accounts be adopted.

2. The second problem concerns the different base years of the statistical series needed for
rebasing the accounts particularly on prices. The solution is to come up with a policy
resolution on the synchronization of all data series for the accounts everytime a rebasing
is programmed.

3. With recent economic developments, particularly the structural changes occurring in the
Philippine economy, the need for more frequent rebasing becomes necessary, otherwise
growth rates may no longer be realistic. An example is the PSNA estimate of exports of
electronics and microcircuits from 1990 to the present. As a result of using a base year
too far in the past, quality changes in electronics and microcircuits have diluted the
validity of the present estimates. Questions have been raised therefore on whether growth
rates of exports of commodities are being underestimated in the PSNA. Attempts have

10
 been made to use finer commodity classifications such as moving from the 2 or 3-digit to
the 7-digit classification of the Philippine Standard Commodity Classification (PSCC). So
far, the results of these attempts have not been conclusive. Other possibilities are to shift
the base year to a more recent one or to look for alternative methodologies such as the
use of chain index. Maybe, there should also be a policy decision on how frequently the
change in base year should be implemented.

III. LINKING OF GDP SERIES AT CONSTANT PRICES

III.a. Series Used to Link the PSNA

The first continuous series at current and constant 1955 prices covered the period from
1946 to 1967. For subsequent estimates at current and constant 1967 prices, comparability
was not considered. While internal consistency was maintained for a given set of estimates
(covering three years) published at one period of time, this was not comparable with other
sets compiled at other times. Thus, the 1967 base estimates did not provide a continously
comparable series even for the last five years despite changes made due to sources of basic
data as well as estimation procedures. Also these sets of estimates were not linked to the 1946-
1967 PSNA series.

In the newly revised series for 1967-1972 (completed as of February12, 1973), there
was an effort to provide a continuous and comparable series over the period to resolve the
problem of discontinuity. Although there was a plan to reconcile this series with the 1946 to
1967 series, this was not completed.

The overall revision that was completed in September 1976 included doing a link series
from 1946 to 1976. This was in compliance to the NEDA Resolution Number 8 Series of 1976.
National accounts data prior to 1967 (1946-1967) were simply linked to the revised series
(1967 to 1976) since data needed for the revision could only be generated to as far back as
1967.

The next linking exercise was undertaken in 1987 as a consequence of the initial
compilation of the Gross Regional Domestic Expenditures (GRDE) Accounts. Since the
GRDE was estimated from 1975 to 1988, the Gross Regional Domestic Product (GRDP) series

11
was also revised and updated to cover the same period. Consequently also, the national
accounts series was revised and a linked PSNA series from 1975 to 1988 was compiled. This
link series was published.

In response to the proposal made in 1985 to again revise the PSNA, one of the activities
that was carried out by the NSCB was to revise the PSNA series from 1980 to 1987 to reflect
the change in base period from 1972 to 1985. The revised series was presented during the
January 1990 PSNA Workshop in Talisay, Batangas to elicit comments from the participating
institutions. The comments served as basis for the revised series to be improved. This was to
be presented to the NSCB Board afterwhich the official PSNA linked series was to be released
by the middle of 1990. The first revised series with 1985=100 was published in May 1991 for
estimates of 1988-1990. This was followed by the 1980-1990 series which was completed in
1995. Again earlier PSNA series from 1946 to 1980 was simply linked to the revised PSNA
series from 1980 to 1990.

Subsequently, starting 1996, linking was undertaken annually after the annual release
of the national accounts in May of each year. The schedule for the link series is now included
in the Schedule of Releases for the PSNA for the following year, which is, announced at the
end of each year.

III.b. Methodology of Linking the PSNA Series

In the Philippines, linking of the PSNA series is timed during its overall revision. The
revision of the PSNA series generally starts with the earliest year not covered by the previous
revision.

Actual revision of the series entails revising the estimates across all the production
sectors and the expenditure items including the Income and Outlay Accounts. The revisions
are the results of new or revised data, changes in concepts and methodology, additional
coverage and rebasing of the accounts.

The portion of the PSNA series not covered by the latest revision is linked to the
revised series through the method of “splicing” described earlier. This is done by applying
and thus assuming the growth rates of the old estimates starting with the first year covered

12
by the latest revised series and moving backwards. For example, in the last linking exercise,
actual revisions were applied to the PSNA series from 1980 to 1990. The portion of the
PSNA series covering the period prior to 1980 was linked to the revised series by applying the
growth rate for 1979 to 1980 on the 1980 estimate to derive the backward estimate for 1979
and so on.

III.c. Problems and Issues in Linking, Some Solutions Adopted/Proposed

1. The major problem in linking the PSNA series is the lack of pertinent data for the earlier
years to allow a complete revision going all the way down to the first component of the
series. This is addressed by linking the earlier years’ estimates with the revised current
series through “splicing”.

2. Another issue is the absence of well-defined policies or guidelines on the generation of a

linked PSNA series. While users generally look for the timely generation of a linked series
to enhance their analysis, statistical offices are faced with resource constraints that
translate into the data limitations associated with the linking process. The NSCB will be
proposing the issuance of a policy resolution to rationalize the linking of the PSNA series
including the Quarterly and Regional Accounts.

IV. THE COMPILATION OF THE QUARTERLY & REGIONAL ACCOUNTS

IV.a. Quarterly Accounts

The compilation of the quarterly national income accounts was initiated in 1983, a time
when the country was in recession and there was an urgent need for more frequent and up-
to-date indicators on the performance of the economy. The quarterly estimates are
produced to provide comprehensive measures of short-term changes in overall economic
activity.

The quarterly accounts of the PSNA are limited to showing only breakdowns of the
GDP by economic activity and by expenditure items. The estimates of the quarterly GDP
and its sectoral components maybe classified into : a) preliminary or advanced estimates; and

13
b) revised estimates. The preliminary or advanced GDP are based on preliminary quarterly
data and/or quarterly indicators that serve to provide quarterly trends in the absence of more
complete data. The revised estimates, however, are based on more complete data and
indicators.

IV.a.1. GDP by Economic Activity

The quarterly GDP by economic activity is the aggregate of the GVAs of the different
industry groups classified into major sectors namely: a) Agriculture, Fishery and Forestry; b)
Industry; and c) Services.

For benchmark estimates on an annual basis, sectoral estimation of GVA follows the
production approach. The annual GVA estimates are disaggregated into quarterly levels
using available quarterly indicators. Subsequently, quarterly estimates by sector and
subsector rely heavily on the use of production indicators to extrapolate quarterly GVAs.
This is true for most of the sectors, particularly during the preliminary rounds of estimation.

IV.a.1.1. Agriculture, Fishery and Forestry

The GVA estimates of agriculture includes the production of agricultural crops, the
raising of livestock and poultry including the production of milk and eggs, the provision of
agricultural services on a fee or contract basis and other agricultural activities such as
horticulture, landscape, gardening and own-account capital formation. Fishing covers
commercial, municipal and aquaculture fishing including the gathering of marine products.
Forestry comprises logging and the gathering of minor forestry products. The GVA is
estimated by first estimating the gross output (GO) and then multiplying it by the
appropriate GVAR.

After the benchmark estimation, quarterly GVA is estimated by extrapolation using

indicators on the value of agricultural production to provide trends for the quarterly GVA
estimates. For constant price estimates, the deflator used is farm gate prices.

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IV.a.1.2. Industry

Mining and Quarrying

GVA estimates for mining and quarrying cover the extraction of metallic and
non-metallic commodity and its related processes including prospecting for minerals on
contract basis. Quarterly GVA for mining and quarrying is estimated indirectly using the
GVAR. The GVA at current prices is derived by applying the GVAR to the value of
production based on reports of the mining firms and supplemented by data from the
Quarterly Survey of Establishments (QSE). The deflators used are the prices of metallic and
non-metallic mining commodities.

Manufacturing

The manufacturing sector covers the organized and the unorganized activities of the 20
major industry groups namely: food, beverages, tobacco, textile, footwear and wearing
apparel, wood and wood products, furniture, paper and paper products, publishing and
printing, leather and leather products, rubber and rubber products, chemical and chemical
products, products of petroleum and coal, non-metallic products basic metal products,
fabricated metal products, machinery except electrical, electrical machinery, transport
equipment and miscellaneous manufactures. The GVA estimation for all subsectors follows
the production approach during benchmark years using both survey-based and
administrative-based data.

On a quarter to quarter basis, GVA for the manufacturing sector is obtained by

extrapolating the GVA of the previous year using the trends of production data. For most of
the subsectors, the data come from the Monthly Integrated Survey of Selected Industries
(MISSI). Additional indicators come from other agencies such as the Sugar Regulatory
Administration for sugar, Philippine Cement Manufactures for cement and Department of
Energy for petroleum and coal. For constant price estimates, the WPI is used as deflator.

15
Construction

The GVA of the sector covers public and private construction, secondary activities,
own account capital formation and the unorganized sector. For quarterly estimates, output
for residential and non-residential buildings is computed using indicators on floor area from
building permits multiplied by the average cost per unit area. Since gross output is equal
only to what has been put in place for a particular period, the allocation of accomplishment is
derived by applying the S-curve method. The GVA at constant prices is derived using the
composite deflator on compensation, materials and repairs and maintenance. For
compensation, the average earning index for construction is used while for maintenance and
repair, the WPI and CPI are used, respectively.

Electricity, Gas and Water

The major activities included in the sector are the generation, transmission and
distribution of electricity to households, industrial and commercial users, the production and
distribution of natural gas or pipeline gas and the collection and purification and distribution
of water for final or intermediate consumption.

On the quarterly estimates for Electricity and Water, benchmark estimates are
established using the financial statements. Thereafter, the GVA is extrapolated using the
growth rates of the sales of the National Power Corporation and the Manila Electric
Companies and the National Electric Administration. For water, quarterly growth rates of
the sales of the MWSS (within Manila) and LWUA (outside Manila) are used. For
constant price estimates, the deflator used is the computed index based on the price per
kilowatt-hour for electricity and price per cubic meter for water.

IV.1.3. Services

Wholesale and Retail Trade

Trade consists of wholesaling and retailing activities. Wholesale trade covers the units
which resell without transformation new and used goods in bulk while retail trade covers
units which resale without transformation new and used goods to the general public mainly

16
for personal and household consumption. Repair and installation services rendered by
establishments mainly engaged in retail trade are also included.

Benchmark estimates for trade avail of the ASE. Subsequently, quarterly GVA
estimates are estimated by extrapolation using growth trends of the gross revenue from the
QSE. The deflators used are the wholesale and retail price indices.

Transportation, Storage and Communications

Transport services consist of the transport of passengers and freight by land, water,
air and services related to this operation like the operation of roads, terminal facilities, piers,
airports and the like including the operation of warehouses and storage facilities.
Communication includes mail and courier services, telephone and radio and related services.
Quarterly estimates of GVA for all subsectors use the growth rates of revenues derived from
QSE. At constant prices, the CPI for transportation is used as deflator.

Finance

The finance sector covers the activities of financial institutions such as banks, non-
banks and insurance companies. The sector’s quarterly estimates are computed using the
growth rates of revenues and compensation from the QSE. For banks the estimates are
validated with some indicators (such as deposits) on the performance of the top banks from
the Central Bank of the Philippines. For constant price estimation, in the absence of more
appropriate deflator, the CPI for all items is used.

Private Services

Private services include educational, medical and health, business, recreational, hotel
and restaurant and other private services. Producers of these services are industries and
private non-profit organizations engaged mainly in social and community services. For all
subsectors, the quarterly GVA is estimated using the growth rate of revenues from the QSE.
In addition, for hotel and restaurant, data on hotel occupancy and tourist arrivals from the
DOT are used.

17
 The constant price estimates for educational, medical and health, recreational and
personal services use the CPI as deflator. For business, hotel and restaurants and other
private services, the compensation per employee index is used.

Government Services

Government services refer to such services as public, administration, defense and

regulation of public order, provision of health, education, cultural, recreational and other
social services, provision of social security arrangements and the promotion of economic
growth and welfare and technological development.

GVA of government services is equivalent to the compensation of employees,

depreciation and indirect taxes. For quarterly estimates, data are available on a quarterly
basis for compensation from the monthly cash disbursement program of the national
government and social security agencies, for depreciation from the inventory of equipment for
national and local government, and for taxes from the budget expenditures and sources of
financing.

At constant prices, the average earnings index from the Quarterly Survey of National
Government Employment and Compensation is used as deflator.

IV.a.2. GDP By Expenditures

IV.a.2.1. Personal Consumption Expenditures

The personal consumption expenditures (PCE) represent the final consumption

expenditures by the households and non-profit institutions serving households. Benchmark
estimates of PCE are derived using the commodity flow method. Such approach calculates
the share of final consumption of households and non-profit institutions serving households
from the total supply of commodities available from domestic production and importation.

For the quarterly estimates, appropriate indicators for each expenditure item are used.
For instance, for food, the quarterly trends of production of agricultural commodities and
manufactured food are used while for fuel light and water, the GVA estimates of electricity

18
and water are used. The residential consumption of electricity from MERALCO and MWSS
are also used to validate the PCE estimates. Estimates at constant prices are obtained by
deflating the current values by the appropriate components of the CPI.

IV.a.2.2. Government Consumption Expenditures

The final consumption expenditures of the general government is equal to its gross
output which is the GVA (from the production side) plus intermediate inputs (MOOE less the
sales to the households) . For constant price estimation, each major item of expenditure is
deflated by an appropriate index; like for travel, the COA allowable per diem is used; for
communication, transport services and service incidental to transport, supplies and materials,
electricity, gas and water and other services, the corresponding CPI is used. For repairs and
maintenance, construction and durable equipment expenditure for the military, deflator used
is the implicit price index of construction and durable equipment.

IV.a.2.3. Gross Domestic Capital Formation

Gross fixed capital formation consists of the gross fixed capital formation and the
changes in stocks. This refers to outlays on construction, durable equipment, and breeding
stocks, orchard development and afforestation. For benchmark estimates, the following are
covered:

Construction
For construction, this covers all constructions owned by the government, government
corporations and private construction including transfer costs and own account capital
formation done by industries. For quarterly estimates, available indicators on building
permits and the S-curve approach are used. A composite price index on construction
materials, compensation and other value added is used as deflator.

Durable Equipment
Durable equipment consists of the outlays for new or used capital goods acquired by
all resident producers less sales or transfers of used capital goods. Following the commodity
flow approach, quarterly estimation makes use of indicators such as imported durable
equipment sourced from the Foreign Trade Statistics and local production for the locally

19
produced equipment. At constant prices, different deflators are used for imported and local
component. The deflator for imported component makes use of the trend of the gross kilos
index while for local component, the wholesale price index specifically for electrical and non-
electrical machinery, transport and miscellaneous is used.

Breeding Stocks, Orchard Development and Afforestation

For breeding stocks, orchard development and afforestation, benchmark estimates
cover the outlays for raising animals for breeding, draught and dairy, for cultivation of
plantations of permanent crops and for clearing and planting of forest trees to develop new
forest areas. For succeeding estimates, the quarterly indicators used are the available data
on inventory of animals, production of permanent crops and area reforested. Estimates for
constant prices make use of the farm gate prices as deflators for breeding stocks and orchard
development while for afforestation , the cost per unit area reforested is used.

Changes In Stocks
Changes in stocks cover the goods and services produced or purchased but not yet put
to final use or sold during the accounting period in the agriculture, general government,
public corporations and other non-agricultural sectors. This is estimated for stocks in the
agriculture and non-agriculture sectors. For constant price estimates, base year prices are
used for each of the stock commodity.

IV.a.2.4. Exports and Imports of Goods and Services

Exports and imports of goods and services consist mainly of transactions between the
residents of a given country and the rest of the world covering merchandise goods and non-
factor services.

In the estimation of merchandise goods, these are valued at free on board (F.O. B) for
exports and at cost plus insurance and freight for imports. To derive the estimates at
constant prices, the corresponding export and import unit value in the base year is multiplied
by the gross kilos. For non-factor services such as transport, communication and insurance
services, government services, travel items, purchases of foreign government in the domestic
territory, and miscellaneous services , quarterly estimates are based on non-factor exports as
reported in the Balance of Payments. These values are deflated using the appropriate

20
domestic price indices like the used of the WPI (for mineral fuels) for transport services, CPI
(Metro Manila) for government services and CPI for the Philippines for the rest of the
commodities such as insurance services and expenditures of non-resident households on
miscellaneous commodities.

IV.b. Regional Accounts

The regional compilation of the Gross Domestic Product provides disaggregated

information on economic activities in support of decentralised planning and decision making.
The first attempt on regional accounts was to estimate the regional GDP by economic
activity (GRDP) in 1974 and covering the period 1971 to 1978. In 1987, regional GDP by
expenditure (GRDE) was first estimated for the period 1975 to 1987. The generation of these
accounts provided subnational users with comprehensive indicator for analysing the
workings of the regional economy. At the same time, the development of such regional
accounts has paved the way to further improve the generation of regional information. With
the compilation of the regional accounts both by economic activity and by expenditure,
demands for regional data inputs necessarily increased. As the current data system cannot
fully support the requirements of the regional accounts, despite its importance to users at the
sub-national levels, the GRDP and GRDE estimates are faced with limitations which demand
continuing improvements.

The succeeding sections present the sectoral estimation methodology of the regional
accounts at constant prices. The discussion takes off from previous presentation of the
quarterly methodology and will discuss how regional distributions are derived using
available indicators.

IV.b.1 Gross Regional Domestic Product (GRDP)

The GRDP is the aggregate of the gross value added or income originating from each
industry or economic activity of the regional economy. The economic activities for regional
accounts follow the same classification as that of the quarterly accounts. The three major
classifications are: a) agriculture, fishery and forestry; b) industry; c) services.

21
 In estimating the GRDP, benchmark estimates by region are initially obtained
following the same benchmark methodology as that of the national annual and quarterly
accounts. The succeeding GVA levels are then estimated using available indicators.

IV.b.1.1 Agriculture, Fishery and Forestry

In Agriculture, Fishery and Forestry, the general methodology cited above is used for
GVA estimate at current prices by region. First, the regional value of production is derived
by multiplying the regional volume of production by the corresponding regional farm prices
to estimate the value of production by subsectors. Then the corresponding regional GVARs
are applied to the value of production to estimate the regional GVA. In the absence of the
regional GVARs, the same GVARs for the national estimates are also used for all regions
which assumes the same commodity technology irrespective of the location of production.
Thus, regional GVA is derived by allocating the national GVA using as indicator the
estimated GVAs. At constant prices, regional deflators are used for constant price estimates.

IV.b.1.2. Industry

Mining and Quarrying

For the preliminary regional estimates, the current price GVA of the metallic
subsectors are estimated using the trends of reporting large scale mines and the panned gold
purchases of the Bangko Sentral ng Pilipinas. The derived GVA at current prices is deflated
by production prices which are derived from the reports of large scale mining companies.
For stone, quarrying, clays and sandpits, the GVA is established using the regional trends of
the gross revenue in the QSE and deflated by appropriate regional price deflator. For other
non-metallic subsector, data on volume and value of coal from the Department of Energy are
used to extrapolate the GVA.

Manufacturing

Regional estimates of the GVA are derived by deducting from the gross output the
intermediate inputs. However, the resulting GVA for the region will not summed up exactly

22
with the total GVA at the national level since the regional estimates do not take into account
the informal sector. Thus, the regional distribution of the estimated GVA is then used for
allocating the national estimate of the GVA. At constant prices, the regional deflator is
derived by applying to the wholesale price index by commodity the regional price differential
based on the CPI.

Construction

Regional GVA are estimated for public and private construction. For public
construction, regional GVA is obtained by applying the regional distribution based on NEDA
and DPWH infrastructure programs. Other indicators from PPA, NEA and DOTC are used
to validate the regional GVA estimates. For private construction, GVA by region is
extrapolated based on trends of the building permits. The resulting regional GVA when
summed up will not equal to the total GVA at the national level since the regional estimates do
not account for the output from secondary activities of the sector and the informal sector.
Thus, these estimates at the national level are allocated to the region using as indicator the
regional distribution of the estimated GVA for private construction. At constant prices,
GVA are estimated using as deflator the composite price index – reflecting labor and other
input components. Price differential across regions is based on the CPI for housing and
maintenance.

Electricity, Gas and Water

For the distribution of the electricity, regional allocations are based on sales data from
the Manila Electric Company and rural electric cooperatives. These indicators are used to
allocate the national level GVA estimates by region. For the generation and distribution
of water, data from the Manila Water Works System and from the local water districts /
water systems are summed up to provide indicators for regional allocation of the GVA
estimates at the national level. At constant prices, the deflator used is the output price index
based on average rates of electricity, gas and water.

23
IV.b.1.3. Services

Wholesale and Retail Trade

Regional GVA only accounts for the organized wholesale and retail trade. The
unorganized are not estimated, so that these are allocated using as indicator the distribution
of the regional value added estimated from the CE/ASE. This procedure assumes that
regional distribution of the unorganized component is the same as that of the organized
trading activities. This is further adjusted using as indicators the trends of goods producing
sectors, which are supposed to be sources of goods traded.

Where CE/ASE are not available, the GVA are estimated by extrapolating the
previous year’s regional GVA using the average of the quarter growth rates of gross revenues
as indicator. The WPI is used as deflator and regional differential are based on CPI for all
items.

Transportation, Storage and Communications

The regional GVA depends on the data from the CE/ASE for direct estimation
of GVA by region for all subsectors except for air. Due to the centralized reporting of the
large transport and communication firms and the exclusion of the small transport units such
as jeepneys, tricycle, etc. regional estimates are faced with limitations. Regional indicators
for each subsector are thus used to supplement the available regional data. However when
both CE/ASE and regional indicators are not available particularly in the preliminary
estimates, the regional GVA for a sector is extrapolated using the geometric average of the
quarterly trend of gross revenues sourced from the QSE, except for the air transport where
data from the Philippine Airlines are readily available. At constant price estimates, the
deflator used is the relevant CPI components.

Finance

Regional GVA estimates for finance are computed for banks, non-banks and
insurance. However, due to data unavailability, the procedure used for estimating the
national GVA cannot be used. Thus, regional indicators are used for the regional allocation

24
of the estimates of national GVA. For banks, where the gross output covers the imputed
bank service charges, actual service charges and other receipts of banks, data on total
resources by region are used as indicators. For non-banks, the number of nonbank financial
institutions by region is used. For insurance, the number of branches and general agents of
private insurance companies by region is used as indicators.

Real Estate and Ownership of Dwellings

Data by region from the CE/ASE are used for regional estimates of real estate and
ownership of dwellings. Additional regional indicators on the value of sales of real estate and
the real estate mortgages are also used. Other indicators by region include the number of
owner occupied dwelling units, average rent per square meter of an owner-occupied dwelling
units, and total floor area of residential construction.

For preliminary estimates where regional data may not be readily available, the GVA
by region for the sector is computed using as indictor the geometric average of quarterly
trend of gross revenue from the QSE. For revised estimates, regional data are used. At
constant prices, the deflator used is the CPI (all items).

Private Services

The CE and ASE with regional breakdown provide the data for regional estimates of
GVA for all subsectors. However, only regional indicators for organized components are
available and those unorganized like independent and small practitioners providing private
services are not covered. Thus, regional distribution of the estimated GVA at the national
level is based on regional structure of the organized establishments providing private
services.

In the preliminary regional estimates when CE / ASE are not available, regional GVA
for the sector is estimated by extrapolating the previous years’ regional GVA using the
average quarterly growth rates of gross revenues for the QSE. For constant price estimates,
the CPI for all items by region are used as deflator.

25
Government Services

The regional GVA for producers of government services is estimated using the cost
approach – that is the summation of the compensation of employees, depreciation and indirect
taxes. The availability of such regional data also allows the regional estimates for both the
local government units and national government agencies at the regional level. At constant
prices, the average earnings index is used as deflator. The same deflator used at the national
level is used for all regions on the assumption that there are no marked differences in the
compensation among the regions as a result of the salary standardization scheme of the
government.

IV.b.2. Gross Regional Domestic Expenditures

Expenditure on the gross regional domestic product is the aggregate of the final
expenditure of the different institutional sectors in the region.

IV.b.2.1. Personal Consumption Expenditures (PCE)

The estimation of PCE at the regional level pose limitations for the replication of the
methodology used at the national level because of the unavailable data for regional estimates.
As such, the regional estimates are derived using as indicator the regional distribution of total
expenditures from the Family Income and Expenditure Surveys (FIES). Regional estimates
are only limited for the total PCE with no breakdown by item of expenditure. Given this
methodology, it is assumed that the regional structure of the final consumption expenditure of
non-profit institutions serving households is the same as that of the households.

In the absence of the FIES which is available every three years, regional estimates are
based on interpolation and the derived regional distribution is used as indicator to allocate the
national level estimates of PCE. Regional estimates at constant prices are derived using the
regional CPI (all items) as deflators.

26
IV.b.2.2. General Government Consumption Expenditures

For regional estimation of the consumption expenditures for government, data from
financial reports of the national and local government provide the basis for the estimates.
When these data are not available, however during the preliminary regional estimates, data
on regional program of expenditures from the Department of Budget and Management are
used. Like the estimation at the national level, regional output are estimated as the
summation of all factor costs for both national and local government. At constant prices,
average earning index computed at the national level is also used as deflator for regional
estimates. This assumes that there are no marked regional differentials in the expenditure
items among regions.

IV.b.2.3. Gross Domestic Capital Formation

Gross capital formation by region are estimated separately for fixed capital formation
consisting of construction, durable equipment, breeding stocks, orchard development and
afforestation as well as for changes in stocks.

Construction
For estimates of construction by region, both public and private constructions are
covered. However, own account capital formation and its secondary activities are not
estimated for the region. For regional public construction, the output measures the
construction in progress. For regional private construction (residential and non-residential),
the data on building permits are used for the S-curve to estimate the percentage distribution
of physical accomplishment for the period. The allocation of the sector's output among
regions is based on indicator of regional distribution as estimated from the gross value of
public and private constructions.

For constant price estimates, a composite index consisting of the Wholesale Price
Index, Average Earning Index and Consumer Price Index are used. Regional CPI for
housing and maintenance provides the regional differentials applied to the composite price
index computed at the national level.

27
 Durable Equipment
The estimation methodology using the commodity flow method as applied for the
national level estimates can not be used for the regional estimates since available data for the
region can not fully support the estimation methodology. Such, the use of regional indicators
obtained from the regional pattern of expenditure on equipment are resorted which are
generated from the Annual Survey of Establishment and the Census of Establishments. For
constant estimates by region, the deflator used for national level estimates is the same deflator
for regional estimates. It assumes that for most capital goods, price determination is more a
function of the uniqueness of the equipment rather than its geographical placement.

Breeding Stocks, Orchard Development and Afforestation

For breeding stocks, regional estimates make use of indicators on regional data on
inventory and prices of livestock and poultry used for breeding, milking, laying and work.
The regional ratios to determine the number of animals used for capital formation are based
on the Census of Agriculture. At constant prices, the deflator used is the regional farm prices.

For orchard development, the regional estimates are based on the distribution of area
planted for major plantation crops. The regional wage index for agriculture is used as
deflator.

For afforestation, regional data on expenditures incurred by private enterprises and

government as reported by the Forest Management Board are used to allocate the national
level estimates by region. The cost per area reforested translated into index is used as deflator
for estimates at constant prices.

Changes in Stocks
Regional estimates for changes in stocks are estimated separately for the agriculture
sectors and non-agriculture sectors. For agriculture, this covers stocks of rice, corn, livestock
and poultry. Stocks of non-agriculture covers the industrial and non-industrial sectors
particularly the finished goods held by manufacturing, mining and quarrying establishments.

At constant prices, regional estimates for agriculture stocks are deflated using the farm
gate prices while for non-agriculture stocks, the computed implicit price index by region is

28
used. Value of changes in stocks at the national level is allocated by region using as indicator
the regional estimates of agriculture and non-agriculture stocks.

IV.b.2.4. Exports and Imports

The current data system in the region can not fully support the regional estimates for
domestic and foreign exports and imports. In some regions where there are international
ports and customs manifests to establish the entry and exit of certain commodities, these are
insufficient to generate estimates of net exports. Moreover, these includes shipment data of
products produced in other regions but shipped in the nearest region where the port is
located. The greater portion of net exports, however, comes from transactions between and
among regions where there are no current available information. As such, the major
indicators for net exports are the estimated GRDP including regional estimates by
expenditure items. With this, the net exports by region are estimated as residual of the total
GRDP less the combined regional estimates of PCE, GGCE and GDCF.

V.c. Problems and Issues on the Compilation of the Quarterly and Regional Accounts

The major problems on the compilation of the quarterly and regional accounts relate
to: a) inadequacy of the quarterly and regional data that will allow direct estimation; b)
when data are not available at estimation time, inappropriate proxy indicators are used; and
c) the absence of more appropriate and regional deflators for most sectors both for the
quarterly and regional estimation.

V. SHORT AND LONG TERM PLANS ON REBASING AND LINKING OF THE PSNA
SERIES

In response to measurement issues resulting from recent economic developments such

as new coverage (government infrastructures built and operated by private organizations,
computer and information services, telecommunications), concept and methodologies
(measuring the quality changes; computer and information services, among others), the
NSCB intends to implement the following Revision-Rebasing Program starting next year to
address these issues in the present PSNA. The general activities under the program,
classified into short-term and long-tem activities are :

29
IV.a. Short – Term Plans
1. Estimate new benchmark levels (1994) based on the 1994 Input-Output Accounts,
1994 Census of Establishments (CE) and 1995 Annual Survey of Establishments (ASE).

2. Following the new 1994 benchmark levels, estimate succeeding years (1995 to
present) levels.

3. Implement improvements/revisions in estimates taking into account the new

coverage, updated data and parameters, improve methodology and changes in concepts.

4. Estimate constant GDP/GNP following the new base year, 1994, for the series 1994 to
present.

IV.b. Long-Term Plans

1. Another Revision-Rebasing will be considered, that is, from 1994 to 2000 to be

carried out in 2003. By that time, the results of the 2000 Benchmark Input-Output and
Census of Establishments will be available.

2. Implementation of the recommendations of the 1993 UNSNA will start in 2005. Pilot
on the 1993 UNSNA has started in 1998.

3. Full computerization of the PSNA by 2003.

30
VI. REFERENCES

Domingo, E.V. The Revised Philippine System of National Accounts. Journal of Philippine
Development. No. 34. Volume XIX. No.1. Philippines. 1992.

Domingo, E.V. Unpublished Paper on "Other Problems in Implementing the 1993 SNA. A
Paper Presented in Joint OECD-ESCAP Meeting on National Accounts in Bangkok,
Thailand. May 4-8, 1998.

National Economic Council. The Statistical Reporter. Volume Nos. 1-4. Philippines. 1969.

National Economic and Development Authority. Manual on the Philippine System of National
Accounts: Framework, Sources and Methods. Manila. Philippines. 1978.

National Economic and Development Authority. Manual on the Philippine Quarterly

National Accounts. Sources and Methods. Manila. Philippines. 1987.

National Statistical Coordination Board. Unpublished Manual on the Regional Accounts.

Sources and Methods. Philippines. 1992.

National Economic and Development Authority. The National Income Accounts. CY 1971-
1975 (Link Series). No. 4. Philippines. 1977.

National Economic and Development Authority. The National Income Accounts. CY 1946-
1975 (Link Series). No. 5. Philippines. 1978.

Virola, R. A. and M.M. Remulla. On the Compilation Methodology of Quarterly Philippine

System of National Accounts. A Paper presented during the Philippine Economic Society
Briefing on How Key Economic Indicators Are Computed. Makati. Philippines. 1997.

31
APPENDICES

32
Appendix 1. HISTORY OF THE PHILIPPINE SYSTEM OF NATIONAL ACCOUNTS

ACTIVITY PERIOD STARTED SERIES COVERED

1. First Estimation of the NIA by the Joint Philippine - 1947 1938 and 1948
American Finance Commission

2. Central Bank assumed NIA estimation 1950 1946-1957

a) First NIA estimates at constant prices (1955 = 100)

3. National Economic Council (NEC) 1957

a) First Revision and Rebasing of National Accounts, 1968 1946 - 1967
(Base Year from 1955 to 1967)
b) Start of Semestral National Accounts 1972 1967 - 1972

4. National Economic Development Authority (NEDA) 1973

continued the NIA estimation
a) Revised Series 1973 1967 - 1972
b) Additional Series 1974 1971 - 1972
c) Second Revision & Rebasing of PSNA 1976 1972 - 1975
(Base Year 1967 to 1972)
d) Linked Series 1977 1946-1975
e) Quarterly National Accounts 1983 1981 - 1982

5. National Statistical Coordination Board (NSCB) 1987

assumed the estimation of the PSNA
a) Third Revision and Rebasing of PSNA 1990 1980-1987
(Base Year 1972 to 1985)
b) Linked Series 1946 - 1990
- Sub-Account I - Factor Shares by Institution 1990 1946 - 1990
- Sub-Account II - Relations Among National Accounts 1990 1946 - 1990
Aggregates
c) Principal Indicators 1990 1946 to present

6. Regional Accounts
a) GRDP 1974 1971 - 1974
b) GRDE 1987 1975 - 1987

7. Deseasonalized National Accounts Series 1993 1988 - 1993

8. Confidence Interval Estimates 1996 1996 to present

Appendix 2. DEFLATORS USED FOR CONSTANT PRICE ESTIMATION

SECTOR / SOURCES
SUBSECTOR DEFLATORS DATA SOURCE SOURCE AGENCY

A. PRODUCTION

1. AGRICULTURE, FISHERY AND FORESTRY

1.1 Crops Farm Gate Prices Farm Price Survey Bureau of Agricultural Statistics

1.2 Livestock/Poultry Farm Gate Prices Farm Price Survey -do-

1.3 Fishery Wholesale Prices Surveys of Commercial and -do-

Municipal Landing Centers

1.4 Forestry Wholesale Prices Wholesale Price Survey National Statistics Office

2. INDUSTRY
2.1 Mining & Quarrying Producers' Prices Reports of Mining Firms Mines & Geo-Sciences Bureau

2.2 Manufacturing Wholesale Price Index Wholesale Price Survey National Statistics Office

2.3 Construction Composite Price Index Consumer Price Survey -do-

Wholesale Price Index Wholesale Price Survey -do-
Average Earning Index Derived From Quarterly National Statistical Coordination
Survey of Establishments Board
2.4 Electricity, Gas &
Water
Electricity National Power Corporation
Electricity price relatives Administrative Reports Manila Electric Company/
of Electric Companies National Electrification Administration

Water Water price relatives Administrative Reports of Manila Waterworks & Sewerage
Water Companies System Regulatory Office / Local
Waterworks Administration
3. SERVICES
3.1. Transportation,
Storage and
Communications

Transportation & Consumer Price Index Consumer Price Survey National Statistics Office
Storage

Communications -do- -do-

3.2 Trade Composite index of Survey of Wholesale and -do-

retail & wholesale trade Retail Prices

3.3 Finance

Banks Consumer Price Index Consumer Price Survey -do-

Insurance -do- -do- -do-

3.4 Real Estate and -do- -do- -do-

Ownership of
Dwellings -do- -do- -do-

3.5 Private Services CPI - Education, -do- NSCB

Medical, Personal,
Recreational
Appendix 2. DEFLATORS USED FOR CONSTANT PRICE ESTIMATION

SECTOR / SOURCES
SUBSECTOR DEFLATORS DATA SOURCE SOURCE AGENCY
Compensation per NSO
Employee Index -
Hotel, Business, Other

3.6 Government Average Earning Index Survey of Government -do-

Services Employment & Compensation

B. EXPENDITURES

1. Personal Consumer Price Index Consumer Price Survey National Statistics Office
Consumption
Expenditures

2. General Govt Average Earning Index Survey of Government -do-

Consumption Employment & Compensation
Expenditures Price relative COA Allowable per Diem Commission on Audit
CPI - rental Consumer Price Survey National Statistics Office
CPI - communication Consumer Price Survey
IPIN - construction National Accounts National Statistical Coordination Board
EGW, business and
private services

3. Gross Domestic
Capital Formation

3.1.Construction Composite Price Index Consumer Price Survey -do-

Wholesale Price Index Wholesale Price Survey -do-
Average Earning Index Derived From QSE National Statistical Coordination
Board

3.2.Breeding Stocks IPIN of Livestock and Farm Price Survey Bureau Agricultural Statistics
Poultry

Afforestation Index of Cost of Administrative Reports of Forest Management Bureau,

Reforestation Govt and Private Firms DENR

3.3.Durable Equipt
Imported Comp Gross Kilo Index Foreign Trade Statistics National Statistics Office
Local Comp Wholesale Price Index Wholesale Price Survey -do-

3.4Changes in Stocks
Agriculture Farm Price Index Farm Price Survey Bureau of Agricultural Statistics
Non-Agriculture Wholesale Price Index Wholesale Price Survey National Statistics Office
Govt Implicit Price Index Derived from GVA Estimates National Statistical Coordination
Board
4. Exports
Merchandise Export Unit Value Index Foreign Trade Statistics National Statistics Office
Non-Merchandise CPI by Trading Partners Balance of Payments Bangko Sentral Ng Pilipinas

5. Imports
Merchandise Import Unit Value Index Foreign Trade Statistics National Statistics Office
Non-Merchandise CPI by Trading Partners Balance of Payments Bangko Sentral Ng Pilipinas