Companies engaged in the production of various market goods account for over half of the Philippine economy in 2016, according to the Philippine Statistics Authority (PSA).
The PSA said nonfinancial corporations are composed of firms that process foods and other commodities. This also includes manufacturing, mining and firms engaged in construction, such as those in cement production.
Based on GDP in current prices, nonfinancial corporations made up 50.7 percent of the 8.7-percent growth last year. GDP in current prices calculates GDP data based on prevailing costs.
“This report came from the Consolidated Accounts and Income and Outlay Accounts compiled by the PSA annually. The Consolidated Accounts present a summary of transactions and relationships among the various flows of the economy at current prices,” the PSA said.
This was followed by households, including nonprofit institutions serving households (NPISH) at 34.7 percent; financial corporations at 7.9 percent; and general government at 6.6 percent.
In terms of savings, total savings in 2016 was recorded at P3.9 trillion. This is higher by 7.5 percent as compared with 2015.
Savings, the PSA explained, was derived as total income (receipts) less total use of income (disbursements) and can be represented for each institutional sector.
The highest share was also accounted for by nonfinancial corporations at 56.9 percent.
Meanwhile, based on the data, the country’s net national disposable income amounted to P16.2 trillion in 2016, an increase of 8.4 percent from 2015.
This was accounted for by household final consumption expenditure and government final consumption expenditure, which reached P10.7 trillion and P1.6 trillion, respectively.
The consolidated accounts included four accounts of the economy which dwell on production, consumption, income, gross accumulation and economic transactions with the rest of the world.
The income and outlay accounts are compiled for the four institutional sectors, namely, nonfinancial corporations, financial corporations, general government and households, including NPISH.
In 2016 PSA data showed that the economy grew 6.9 percent using constant GDP terms. Constant GDP is based on price calculations in the value for a particular base year. The National Economic and Development Authority attributed the country’s economic growth to the government’s construction spending in the fourth quarter.
Private consumption, meanwhile, slowed to 6.3 percent in the fourth quarter 2016, from 6.5 percent in the same period in 2015. But its full-year growth remained robust at 6.9 percent, higher than 6.3 percent in 2015.
PSA data showed that net primary income (NPI) slowed by 4.1 percent compared to the 11.5 percent growth recorded in the fourth quarter of 2015.