Despite being an archipelago, the Philippines has become less reliant on ocean-based economic activities to boost economic expansion, according to data from the Philippine Statistics Authority (PSA).
Based on PSA data, gross value added (GVA)—the value of output less the value of intermediate consumption—of ocean-based industries only accounted for 3.6 percent of gross domestic product (GDP) in 2018.
This is lower than the 3.7 percent posted in 2017 and 2015; 3.9 percent in 2014; 4 percent in 2013; and 4.3 percent in 2012. In 2016, the GVA was also at 3.6 percent.
“The Ocean Economy refers to economic activities, such as the production, distribution and consumption of goods and services, related to or conducted in, near, or found in the seas,” PSA said. “[The Ocean Economy] is defined as the sum of the value added of ocean-based industries.”
Among the industries, PSA said ocean fishing accounted for the largest share of value added to the ocean economy. Ocean fishing makes up for 29.1 percent of ocean-based industries.
PSA data showed that the manufacture of ocean-based products accounted for the second-largest share to total ocean-based industries at 16.2 percent.
Coastal hotels make up the third-largest share of value added to the total ocean economy at 14.2 percent.
Figures from the PSA also indicated that the country’s ocean economy expanded by 7.8 percent at current prices last year. However, the figure was slower than the 10.2 percent recorded in 2017.
The growth rate in 2018 was the second-highest in five years. In 2013, ocean economy grew 2.6 percent; 2014, 5.8 percent; 2015, 0.2 percent; and 2016, 6.6 percent.
“Value added from these industries increased by 7.8 percent amounting to P622.2 billion, from P577.4 billion in the previous year,” the PSA said.
The ocean economy’s growth in 2018 was driven by coastal construction, which recorded the highest growth rate at 158.3 percent, from 1.4 percent in 2017, followed by Offshore and Coastal Mining and Quarrying, which expanded by 19.9 percent in 2018, from 17.7 percent in 2017.
The PSA said coastal construction covered the construction of seaports, lighthouses, and other structures that aid maritime travels. The statistical agency also said the offshore and coastal mining industry covered the offshore oil and gas extraction activities, as well as the mining of salt.
Among the industries under the ocean economy, marine insurance contracted by an annualized rate of 7.6 percent last year, while Maritime Safety, Surveillance and Resource Management declined by an annualized rate of 1.5 percent.
The PSA said marine insurance covered the insurance of ships, passenger of maritime transports, and insurance of freight. Maritime safety, surveillance and resource management, PSA said, covered government services aimed at the management, protection, utilization and preservation of marine and coastal resources.
The performance of maritime education was also lackluster for the third consecutive year in 2018, when it contracted by 0.8 percent. However, the rate was slower than the 25.7 percent recorded in 2017 and 14.5 percent in 2016.
The maritime education industry, PSA said, covers the value of output of maritime higher education institutions.
Among the major industries, PSA said services accounted for the largest share in 2018 with P228.1 billion, or 36.7 percent of the total ocean-based activities GVA.
This was followed by industry at 34.2 percent share and the fishing at 29.1 percent share.
Employment in ocean-based industries was at 2.5 million in 2018. This accounted for 6 percent of total employment for the year.