THE latest rebasing and revising of the gross domestic product (GDP) is expected to better reflect the performance of business-process outsourcing (BPO) operations, health and education, according to the Philippine Statistics Authority (PSA).
The changes in the computation of the GDP, National Statistician Claire Dennis S. Mapa recently told reporters, will not only be a 2018 base year but will see the addition of new subsectors in the production side of the National Income Accounts (NIA).
Mapa said the BPO sector will be placed in the new Information, Communication Technology (ICT) subsector under the Services sector. This is one of 6 to 7 new subsectors to be added under Services.
“If you will look at the components under Services, there is a relatively substantial percentage referred to as ‘Other Services;’ so of course…these different items would have to be segregated, so that is what we’re doing,” Mapa said.
Currently, GDP’s production side is composed of Agriculture, Hunting, Forestry and Fishing (AHFF); Industry; and Services. AHFF is composed of the subsectors Agriculture and Forestry and Fishing.
Industry subsectors are composed of four subsectors Mining & Quarrying; Manufacturing; Construction; and Electricity, Gas and Water Supply.
Services, meanwhile, has six subsectors: Transport, Storage and Communication; Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods; Financial Intermediation; Real Estate, Renting and Business Activities; Public Administration and Defense, Compulsory Social Security; and Other Services.
Mapa said the GDP estimates to be released in May 2020, which will be for the first quarter 2020 NIA, will already reflect these changes.
However, Mapa assured that these changes are being made in consultation with PSA’s stakeholders. He said this is being done in accordance with PSA’s mandate.
The PSA’s functions include the review of the government’s statistical programs, including departments and agencies as well as local government units.