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 fixedbased 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 =
GVA k( O+U )
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
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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)
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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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Estimation Methodology
Government Services:
Annual Estimates : GVA at Current
GVA = CE + CCA + IT
where:
CE = compensation of employees
CCA = Depreciation
IT = Indirect Taxes
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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
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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
International Workshop From Data to Accounts: Measuring
Production in National Accounting Beijing, China
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