Running Head: ECONOMIC PERFORMANCE OF THE PHILIPPINES 1

Economic Performance of the Philippines:

Five Years after the Great Economic Recession
Juan Gabriel Lopez
De La Salle University - Dasmarias








ECONOMIC PERFORMANCE OF THE PHILIPPINES 2

The Problem and Its Background
Introduction
Five years have passed since the so-called Great Economic Recession has started and
escalated to a certain level that the crisis spread from the United States to the European countries
until it reached the ASEAN countries. The recession eventually crippled the economy of the
countries which are vulnerable to this kind of crisis. The Philippines, which was still under
Arroyos administration, was weather heavily by the recession that it heavily contributed to the
averaged 4.5% economic growth, as stated in CIA World Factbook (as cited in Index Mundi,
2013), of the Philippines during January 2001 January 2010. Even after the Great Economic
Recession, some nations are still experiencing the aftermath of the crisis thus some countries
werent able to recover their damages incurred during the brief recession. The Philippines,
however, responded quickly to the aftermath and eventually were able to gradually progress
economically up until to this current year.
Statement of the Problem
The Great Economic Recession of 2008
The Great Economic Recession also referred to as the Lesser Depression, the Long
Recession, or the global recession of 2009 was a global economic decline in the late 2000s. It is a
worldwide recession that began in 2008 and ended in 2009. The Great Economic Recession
began as a national recession in United States in December 2007 but eventually the said
recession affected the entire world economy, with greater detriment to some countries than
others. It was a major global economic recession characterised by various systemic imbalances,
ECONOMIC PERFORMANCE OF THE PHILIPPINES 3

and was sparked by the outbreak of the U.S. subprime mortgage crisis and financial crisis of
200708. The economic side effects of the European sovereign debt crisis, austerity, high levels
of household debt, trade imbalances, high unemployment, and limited prospects for global
growth in 2014 (Lee, 2012), continue to provide obstacles for many countries to achieve a full
recovery from the recession.
According to the U.S. National Bureau of Economic Research (2008), the US recession
began in December 2007 and ended in June 2009, and thus spanned over 18 months. US
mortgage-backed securities, which had risks that were hard to assess, were marketed around the
world.
The bad financial situation was made more difficult by a sharp increase in oil and food
prices. The emergence of sub-prime loan losses in 2007 began the crisis and exposed other risky
loans and over-inflated asset prices. With loan losses mounting and the fall of Lehman Brothers
on 15 September 2008, a major panic broke out on the inter-bank loan market. As share and
housing prices declined, many large and well established investment and commercial banks in
the United States and Europe suffered huge losses and even faced bankruptcy, resulting in
massive public financial assistance.
The global recession resulted in a sharp drop in international trade, rising unemployment
and slumping commodity prices (Isidore, 2008). Several economists predicted that recovery
might not appear until 2011 and that the recession would be the worst since the Great Depression
of the 1930s (Lightman, 2009). The conditions leading up to the crisis, characterised by an
exorbitant rise in asset prices and associated boom in economic demand, are considered a result
ECONOMIC PERFORMANCE OF THE PHILIPPINES 4

of the extended period of easily available credit (Wearden, 2008) and inadequate regulation and
oversight (Andrews, 2008).
The Measurement of Economic Performance
A countrys economic performance can be measured through many different ways with
different approaches. The most common indicator of a certain countrys economic performance
is through its measurement of the said countrys Gross National Product (GNP) or also known as
Gross National Income (GNI). The researcher focused on the aforesaid economic performance
indicator in order to concentrate the scope of the research to the different approaches that are
derived from the said indicator. The said approaches are also straightforward in terms of
computing for the Gross National Income thus making it less complex to understand for people
who are not economically aware. In order to understand these approaches, it is practicable to first
discuss what is Gross National Income and how does it measures the economic performance of a
country.
Gross National Income (GNI) is the total income earned by a nations permanent
residents which are also called nationals. It differs from GDP by including income that citizens
from that nation earn abroad and excluding income that foreigners earn in that said nation
(Mankiw, 2009, p.529). GNI involves income earned that are involved in economic activities
and irrespectively whether the said economic activities are carried out within the economic
territory of the said nation or outside, in a specified period. In other words, GNI or GNP is one
measure of the economic condition or performance of a certain country and under the assumption
that a higher GNI leads to a higher quality of living with all other things being equal. Contrasted
with GDP, GNI measures the output generated by a certain countrys economic enterprises
ECONOMIC PERFORMANCE OF THE PHILIPPINES 5

whether physically located domestically or located abroad (Leipert, 1987, p.373) while the
former measures only the total market value of all final goods and services produced within a
country in a given period of time (Mankiw, 2009, p.528). Therefore, Gross National Income is
the basic concept of national income accounting.
Gross National Income that is measured at current market prices is called Nominal GNI.
This method of estimating the GNI involves measuring the GNI at the prices of goods and
services being measured at the prices existing in the market in current year whereas Gross
National Income that is estimated at a fixed price or constant price of a specific base year is
called Real GNI (Gross National, n.d.).
There are three different approaches but only two of the said approaches will be
considered for this research as they are readily available and most commonly used. The first
approach would be the Expenditure Approach and the other one would be the Industrial Origin
Approach. The former includes a number of variables or components for the GNI to be
calculated while the latter is only focused to three main components.
The Expenditure Approach is the most popular national output accounting method. It
focuses on finding the total output of a nation by finding the total amount of money spent. In this
approach, the total value of all goods is equal to the total amount of money spent on goods. The
basic formula for domestic output combines all the different areas in which money is spent
within the region and then combining them to find the total output (Student#1, 2009).
The formula for the Expenditure Approach would be:
C + I + G+ (X-M) SD = GNI or GNP
ECONOMIC PERFORMANCE OF THE PHILIPPINES 6

The components are the following:
Consumption Expenditure (C) includes expenditure by household durable goods such as
automobile, refrigerators, etc., non-durable goods such as food, clothing, etc. and services such
as doctors, education, etc.
Gross Investment (I) includes all final purchase of machinery, equipment, and tools by
business enterprise in given time period-change in capital stock all current construction changes
in inventories, changes in stocks of finished goods and goods in process as well as changes in the
raw material that businesses keep on hand. Inventories can be negative, positive or zero.
Government Expenditure (G) includes all governmental spending on the finished product
of business and all direct purchases of resources such as labour. It excludes all government
transfer payments because it doesn't reflect any current production.
Expenditures on goods and services exported (X) and imported (M) and Net Exports (X-
M) include the difference between the imports and exports. It is the component of the total
demand for our goods and it can be negative, positive or zero.
Statistical discrepancy (SD) is the official adjustment factor in the national income and
product accounts. It is used to ensure equality between the income and expenditures approaches
to measuring gross national income (Cloutier, 2009).
Another approach would be the Industrial Origin Approach. As explained in an online
lecture by Momponbanua (2013), it measures the GNI by adding the total gross value added of
the three sectors of the economyagriculture, industry or manufacturing, and services. The
aforementioned approach also entails the consolidation of the production of each industry less
ECONOMIC PERFORMANCE OF THE PHILIPPINES 7

intermediate purchases from all other industries. This method of measurement shows the
unduplicated contribution by each industry to the total output. The total market or gross value
consists of the value added of the sector, the indirect taxes net of subsidies, and the capital
consumption allowance for each sector.
Computation using the Industrial Origin Approach would be done using the formula:
A + I + S = GNI or GNP
Wherein the components are the following
The Agricultural sector (A) that also covers the fisheries and forestry.
The Industrial sector (I) which includes mining and quarrying, manufacturing,
construction, and electricity, gas and water.
Lastly would be the Service sector (S) where it compromises transportation, trade,
finance and housing, private services, and government services.
Measuring the GNI of a certain country using this approach has certain flaws. These
flaws limited the calculation of the gross national income in several ways. The said approach
does not measure production but it measures sales. It omits all the money spent in the
underground economy and it doesnt distinguish between qualities of the products. So in
actuality, GNP measures the amount of money transferred from consumers to politically
connected vendors. GNP merely measures the income of the politically sanctioned commercial
class. When GNP goes up, the commercial class gets richer; when it goes down, that class gets
poorer (Kozy, 2013).
ECONOMIC PERFORMANCE OF THE PHILIPPINES 8

The Economic Performances of the Philippines in 2009, 2010, 2011, 2012 and 2013,
five years after the Great Economic Recession.
Discussing the Economic Performances of the Philippines in 2009, 2010, 2011, 2012 and
2013, five years after the Great Economic Recession would be strictly limited to the GDP and
GNI of the Philippines during the said years. Each year would be divided into four quarters thus
a quarterly economic performance reports scope would be up to three months. As discoursed
earlier, measuring economic performance of a certain country can be done by computing the
Gross National Income (GNI). The calculation of the GNI of the Philippines is complex because
of the fact that there are a lot of variables that are needed to be considered for an accurate and
precise computation of the Gross National Income of the said country. Also stated earlier,
generally, there are three ways of computing the GNI of a country but for the sake of focusing on
the macroeconomic level of nature of this paper, the researcher only gathered data that are
computed using the Expenditure Shares Approach and the Industrial Origin Approach. The two
aforesaid approaches in computing the Gross Domestic Product (GDP) and the Gross Domestic
Income (GNI) are considered precise and accurate ways of determining the economic
performance of the Philippines and the data involved in the computation using the said
approaches are readily available through the Philippine Statistical Authority National
Statistical Coordination Board (NSCB) and already broken down to different components for
further analysis of the GNI and as well as the GDP of the country.
The Philippines quarterly and annual economic performance reports that can be found on
the website of the Philippine Statistical Authority National Statistical Coordination Board
(NSCB) are also composed of the two aforementioned approachesExpenditure Shares and
Industrial Origin Approach. Both data of the said approaches are broken down into four quarters
ECONOMIC PERFORMANCE OF THE PHILIPPINES 9

of a year and then compared to another set of four quarters of another year preferably a year later
or earlier. For instance, the first, second, third and four quarter of the year 2008 are respectively
compared to the first, second, third and four quarter of the year 2007 and/or 2009. Assessment of
the data can also be done annually where the annual growth per year is compared to the previous
year or the year after.
Considering the introduction of the quarterly and annual economic performance report
comparisons, data gathered are also assessed by either a fixed base value of prices or to the
current price of the current year. The fixed base value of prices can be called Constant Prices
wherein it was defined earlier in this paper and the current price of that certain year pertains to
Current Prices. These said prices can be in Philippine currency and are commonly in millions in
terms of denomination. Lastly would be the growth rate of either the quarterly or annual
economic performance reports which are commonly in percentage form.
Presentation, Interpretation and Analysis of Data
Presentation of Data
What are the Economic Performances of the Philippines in 2009, 2010, 2011, 2012
and 2013, five years after the Great Economic Recession?
Data collected from years 2009 up to 2013 are all gathered from the Philippine Statistical
Authority National Statistical Coordination Board. The NSCB provided the necessary information
about the economic performances of the Philippines five years after the Great Economic Recession. Data
sets with the application of the Expenditure Approach and the Industrial Origin Approach reflected the
Gross National Income of the Philippines which are reported quarterly and also annually. For the
ECONOMIC PERFORMANCE OF THE PHILIPPINES 10

purpose of precision and deterrence of information overload, only annual reports or statistics of the
economic performance are collected and assessed in this paper.
GNP and GDP by Expenditure Approach
Annual 2008 and 2009 at Current and Constant 1985 Prices, in Million Pesos
TYPE OF EXPENDITURE
AT CURRENT PRICES AT CONSTANT PRICES
2008 2009
Growth
Rate
(%)
2008 2009
Growth
Rate
(%)
Personal Consumption Expenditure 5,281,072 5,675,066 7.5 1,107,569 1,149,828 3.8
Government Consumption 716,544 813,824 13.6 93,746 101,753 8.5
Capital Formation 1,131,490 1,070,787 -5.4 256,244 230,906 -9.9
Exports 2,736,310 2,401,580 -12.2 663,324 569,294 -14.2
Less : Imports 2,872,572 2,341,600 -18.5 643,572 606,283 -5.8
Statistical discrepancy 430,370 49,487 -58,360 -13,519

GROSS DOMESTIC PRODUCT 7,423,213 7,669,144 3.3 1,418,952 1,431,978 0.9
Net factor income from the rest of the
world
827,036 1,031,679 168,845 202,704
GROSS NATIONAL PRODUCT 8,250,249 8,700,822 5.5 1,587,797 1,634,682 3.0
MEMORANDUM ITEMS: Trading gain
(loss) from changes in the terms of
trade
-51,282 51,118
Gross National Income 1,536,515 1,685,800




ECONOMIC PERFORMANCE OF THE PHILIPPINES 11


Annual 2009 and 2010 at Current and Constant 1985 Prices, in Million Pesos
TYPE OF EXPENDITURE
AT CURRENT PRICES AT CONSTANT PRICES
2009 2010
Growth
Rate
(%)
2009 2010
Growth
Rate
(%)
Personal Consumption Expenditure 5,674,966 6,192,862 9.1 1,152,658 1,214,005 5.3
Government Consumption 809,688 884,276 9.2 101,163 103,886 2.7
Capital Formation 1,124,644 1,329,737 18.2 243,052 284,280 17.0
Exports 2,431,373 3,098,149 27.4 574,284 721,533 25.6
Less : Imports 2,364,761 2,881,295 21.8 621,543 750,201 20.7
Statistical discrepancy 3,007 -110,692 -17,499 -36,351

GROSS DOMESTIC PRODUCT 7,678,917 8,513,037 10.9 1,432,115 1,537,152 7.3
Net factor income from the rest of the
world
1,131,067 1,237,157 222,821 236,198
GROSS NATIONAL PRODUCT 8,809,984 9,750,193 10.7 1,654,936 1,773,350 7.2
MEMORANDUM ITEMS: Trading gain
(loss) from changes in the terms of
trade
63,868 83,904
Gross National Income 1,718,804 1,857,254






ECONOMIC PERFORMANCE OF THE PHILIPPINES 12

Annual 2010 and 2011 at Current and Constant 2000 Prices, in Million Pesos
TYPE OF EXPENDITURE
At Current Prices At Constant Prices
2010 2011
Growth
Rate
(%)
2010 2011
Growth
Rate
(%)
1. Household Final Consumption
Expenditure
6,442,033 7,142,606 10.9 3,945,827 4,186,196 6.1
2. Government Final Consumption
Expenditure
875,291 916,173 4.7 570,208 566,302 -0.7


3. Capital Formation 1,849,380 2,123,321 14.8 1,183,650 1,315,003 11.1
A. Fixed Capital 1,847,748 1,881,065 1.8 1,182,206 1,213,799 2.7
1. Construction 949,406 948,952 0.0 490,659 470,303 -4.1
2. Durable Equipment 692,519 719,149 3.8 567,833 617,416 8.7
3. Breeding Stock & Orchard
Dev't
173,494 178,592 2.9 98,928 98,592 -0.3
4. Intellectual Property Products 32,328 34,373 6.3 24,785 27,489 10.9
B. Changes in Inventories 1,632 242,256

1,444 101,204



4. Exports 3,133,507 3,036,691 -3.1 2,886,133 2,777,837 -3.8
A. Exports of Goods 2,259,876 2,092,801 -7.4 2,367,520 2,241,845 -5.3
B. Exports of Services 873,632 943,890 8.0 518,613 535,992 3.4


5. Less: Imports 3,296,732 3,524,799 6.9 2,884,280 2,940,358 1.9
A. Imports of Goods 2,635,752 2,842,398 7.8 2,330,115 2,363,190 1.4
B. Imports of Services 660,980 682,401 3.2 554,165 577,168 4.2



6. Statistical Discrepancy 0 40,793 0 8,568



GROSS DOMESTIC PRODUCT 9,003,480 9,734,783 5,701,539 5,913,549 3.7





Net Primary Income 2,992,597 3,069,129 8.1 1,859,847 1,843,117






GROSS NATIONAL INCOME 11,996,077 12,803,912 6.7 7,561,386 7,756,666 2.6




ECONOMIC PERFORMANCE OF THE PHILIPPINES 13

Annual 2011 and 2012 at Current and Constant 2000 Prices, in Million Pesos
TYPE OF EXPENDITURE
At Current Prices At Constant Prices
2011 2012
Growth
Rate
(%)
2011 2012
Growth
Rate
(%)
1. Household Final Consumption
Expenditure
7,177,046 7,836,227 9.2 4,194,513 4,450,712 6.1
2. Government Final Consumption
Expenditure
931,682 1,096,831 17.7 575,824 643,820 11.8


3. Capital Formation 2,113,995 2,053,161 -2.9 1,279,682 1,222,824 -4.4
A. Fixed Capital 1,857,297 2,076,695 11.8 1,184,018 1,286,783 8.7
1. Construction 928,313 1,091,042 17.5 460,387 523,363 13.7
2. Durable Equipment 715,051 763,124 6.7 597,240 630,987 5.7
3. Breeding Stock & Orchard
Dev't
178,640 181,013 1.3 98,678 100,043 1.4
4. Intellectual Property Products 35,293 41,516 17.6 27,712 32,390 16.9
B. Changes in Inventories 256,698 -23,534 95,664 -63,960



4. Exports 3,019,743 3,196,232 5.8 2,764,877 3,005,475 8.7
A. Exports of Goods 2,069,259 2,125,827 2.7 2,225,558 2,413,312 8.4
B. Exports of Services 950,484 1,070,405 12.6 539,319 592,163 9.8


5. Less: Imports 3,506,946 3,587,346 2.3 2,890,486 3,011,758 4.2
A. Imports of Goods 2,831,595 2,848,095 0.6 2,340,420 2,400,361 2.6
B. Imports of Services 675,351 739,251 9.5 550,066 611,396 11.1




6. Statistical Discrepancy 0 -26,700

0 3,793



GROSS DOMESTIC PRODUCT 9,735,521 10,568,405 8.6 5,924,409 6,314,866 6.6




Net Primary Income 3,142,606 3,346,712

1,878,607 1,940,391





GROSS NATIONAL INCOME 12,878,127 13,915,117 8.1 7,803,016 8,255,257 5.8

Annual 2012 and 2013 at Current and Constant 2000 Prices, in Million Pesos
TYPE OF EXPENDITURE
At Current Prices At Constant Prices
2012 2013
Growth
Rate
(%)
2012 2013
Growth
Rate
(%)
1. Household Final
Consumption Expenditure
7,837,881 8,455,783 7.9 4,442,523 4,691,060 5.6
2. Government Final
Consumption Expenditure
1,112,586 1,243,113 11.7 653,067 709,109 8.6

3. Capital Formation 1,950,524 2,243,714 15.0 1,168,386 1,381,256 18.2
A. Fixed Capital 2,047,957 2,332,663 13.9 1,280,042 1,430,348 11.7
1. Construction 1,074,169 1,236,436 15.1 517,184 573,475 10.9
2. Durable Equipment 751,133 874,079 16.4 630,084 720,598 14.4
ECONOMIC PERFORMANCE OF THE PHILIPPINES 14

3. Breeding Stock &
Orchard Dev't
181,123 178,032 -1.7 100,069 98,536 -1.5
4. Intellectual
Property Products
41,531 44,116 6.2 32,705 37,739 15.4
B. Changes in
Inventories
-97,433 -88,949 -111,656 -49,092


4. Exports 3,254,460 3,332,196 2.4 3,054,071 3,077,984 0.8
A. Exports of Goods 2,120,180 2,124,279 0.2 2,426,493 2,428,474 0.1
B. Exports of Services 1,134,279 1,207,917 6.5 627,578 649,510 3.5

5. Less: Imports 3,590,563 3,631,207 1.1 3,006,376 3,136,324 4.3
A. Imports of Goods 2,875,855 2,877,476 0.1 2,415,218 2,510,593 3.9
B. Imports of Services 714,708 753,731 5.5 591,158 625,731 5.8

6. Statistical Discrepancy 0 -97,495

0 40,682


GROSS DOMESTIC
PRODUCT
10,564,886 11,546,104 9.3 6,311,671 6,763,767 7.2

Net Primary Income 2,043,843 2,284,037

1,184,875 1,296,710


GROSS NATIONAL INCOME 12,608,730 13,830,140 9.7 7,496,546 8,060,477 7.5

GNP and GDP by Industrial Origin Approach
Annual 2008 and 2009 at Current and Constant 1985 Prices, in Million Pesos
INDUSTRY/INDUSTRY GROUP
At Current Prices At Constant Prices
2008 2009
Growth Rate
(%)
2008 2009
Growth Rate
(%)
Agri. Fishery, Forestry 1,102,756 1,144,615 3.8 259,406 259,573 0.1
Industry Sector 2,349,426 2,295,126 -2.3 465,017 455,784 -2.0
Service Sector 3,971,031 4,229,402 6.5 694,529 716,621 3.2

GROSS DOMESTIC PRODUCT 7,423,213 7,669,144 3.3 1,418,952 1,431,978 0.9
Net factor income
from the rest of the world
827,036 1,031,679 168,845 202,704
GROSS NATIONAL PRODUCT 8,250,249 8,700,822 5.5 1,587,797 1,634,682 3.0


ECONOMIC PERFORMANCE OF THE PHILIPPINES 15

Annual 2009 and 2010 at Current and Constant 1985 Prices, in Million Pesos
INDUSTRY/INDUSTRY GROUP
At Current Prices At Constant Prices
2009 2010
Growth
Rate
(%)
2009 2010
Growth
Rate
(%)
Agri. Fishery, Forestry 1,138,334 1,182,374 3.9 259,424 258,081 -0.5
Industry Sector 2,318,882 2,663,497 14.9 460,205 515,751 12.1
Service Sector 4,221,702 4,667,166 10.6 712,486 763,320 7.1





GROSS DOMESTIC PRODUCT 7,678,917 8,513,037 10.9 1,432,115 1,537,152 7.3
Net factor income
from the rest of the world
1,131,067 1,237,157 222,821 236,198
GROSS NATIONAL PRODUCT 8,809,984 9,750,193 10.7 1,654,936 1,773,350 7.2

Annual 2010 and 2011 at Current and Constant 2000 Prices, in Million Pesos
INDUSTRY/INDUSTRY
GROUP
At Current Prices At Constant Prices
2010 2011
Growth
Rate
(%)
2010 2011
Growth
Rate
(%)
Agriculture, Hunting, Forestry
and Fishing
1,108,718 1,244,575 12.3 662,665 679,999 2.6
Industry Sector 2,932,279 3,070,720 4.7 1,859,515 1,894,765 1.9
Service Sector 4,962,483 5,419,488 7.4 3,179,359 3,338,786 2.6


GROSS DOMESTIC PRODUCT 9,003,480 9,734,783 8.1 5,701,539 5,913,549 3.7
Net Primary Income 2,992,597 3,069,129

1,859,847 1,843,117

GROSS NATIONAL INCOME 11,996,077 12,803,912 6.7 7,561,386 7,756,666 2.6





ECONOMIC PERFORMANCE OF THE PHILIPPINES 16

Annual 2011 and 2012 at Current and Constant 2000 Prices, in Million Pesos
INDUSTRY/INDUSTRY
GROUP
At Current Prices At Constant Prices
2011 2012
Growth
Rate
(%)
2011 2012
Growth
Rate
(%)
Agriculture, Hunting,
Forestry and Fishing
1,245,196 1,256,730 0.9 680,445 698,736 2.7
Industry Sector 3,056,468 3,281,780 7.4 1,901,401 2,024,580 6.5
Service Sector 5,433,857 6,029,895 11.0 3,342,564 3,591,549 7.4


GROSS DOMESTIC
PRODUCT
9,735,521 10,568,405 8.6 5,924,409 6,314,866 6.6
Net Primary Income 3,142,606 3,346,712

1,878,607 1,940,391

GROSS NATIONAL
INCOME
12,878,127 13,915,117 8.1 7,803,016 8,255,257 5.8

Annual 2012 and 2013 at Current and Constant 2000 Prices, in Million Pesos
INDUSTRY/INDUSTRY GROUP
At Current Prices At Constant Prices
2012 2013
Growth
Rate
(%)
2012 2013
Growth
Rate
(%)
Agriculture, Hunting, Forestry
and Fishing
1,250,616 1,297,903 3.8 698,937 706,647 1.1
Industry Sector 3,284,508 3,582,787 9.1 2,022,623 2,213,892 9.5
Service Sector 6,029,762 6,665,414 10.5 3,590,111 3,843,229 7.1

GROSS DOMESTIC PRODUCT 10,564,886 11,546,104 9.3 6,311,671 6,763,767 7.2
Net Primary Income 2,043,843 2,284,037 1,184,875 1,296,710
GROSS NATIONAL INCOME 12,608,730 13,830,140 9.7 7,496,546 8,060,477 7.5

Interpretation and Analysis of Data
What are the Economic Performances of the Philippines in 2009, 2010, 2011, 2012
and 2013, five years after the Great Economic Recession?
The Expenditure and the Industrial Origin Approach which were applied in calculating
the GDP and GNI or GNP of the Philippines in order to assess its economic performances during
the years 2009, 2010, 2011, 2012, and 2013, five years after the Great Economic Recession
ECONOMIC PERFORMANCE OF THE PHILIPPINES 17

revealed different results. Table 1 shows the growth rates of the GNI that is calculated using the
Expenditure Approach and the Industrial Origin for the years 2009, 2010, 2011, 2012, and 2013
at current prices.
Annual report GNI Growth rate
2008 - 2009 5.5%
2009 - 2010 10.7%
2010 - 2011 6.7%
2011 - 2012 8.1%
2012 - 2013 9.7%
Table 1. GNI growth rates for years 2008 to 2013
In addition to the simplified GNI growth rates for the years 2008 to 2013, GNI also varies
when compared to current prices and constant prices. The Philippines Gross National Income
growth rate during the years 2008 - 2009 amounted to only 5.5% then almost doubled when the
years 2009 -2010 came. The said rate again dipped to 6.7% for years 2010 2011 but gradually
rose to 8.1% and 9.7% over the years 2011 2012 and 2012 2013 respectively.



ECONOMIC PERFORMANCE OF THE PHILIPPINES 18

Findings, Conclusion and Recommendation
Findings
The researcher, while conducting the study of the economic performances of the
Philippines during the years 2009, 2010, 2011, 2012, and 2013, five years after the Great
Economic Recession, found out that the said countrys approaches on calculating the Gross
National Income were more inclined to the Expenditure Approach and the Industrial Origin
Approach. The researcher learned that even if the calculation of the Gross National Income was
done using either aforementioned approaches, the result will still be the same. The study also
imparted that the measurement of economic performance of a certain country doesnt include
those of the illegal trade and also it doesnt considers the quality of the product or the service
being produced by the country. Thus, a higher Gross National Income doesnt necessarily equate
to a higher quality of life.
Conclusion and Recommendations
Considering all of the data and facts that were acquired for this study, the researcher would
conclude that the Philippines, despite being weathered by Great Economic Recession of 2008,
was able to progress and still prosper. This conclusion was based on the fact that the growth rate
of the Philippines was able to increase five years after it has been affected by the recession and
also considering the fact that the Gross National Income of the country has been steadily
increasing for the past two years. However, since the calculation of the GNI using the
Expenditure and Industrial Origin Approaches are on the macroscopic level of assessing the
economic performance of the Philippines five years after the Great Economic Recession, it
doesnt reflect the individual or the citizens personal experiences after the said recession.
ECONOMIC PERFORMANCE OF THE PHILIPPINES 19

Consequently, the researcher would also conclude that regardless of having a positive Gross
National Income growth rate over the five years, the study wasnt able to verify if the
individuals quality of life during those said years. It just measures how the economy is doing as
individuals go on with their lives and not how an individual is doing in the present economy.
Overall, the data acquired proved to be significant and contributed to the success of the
dissertation about the economic performance of the Philippines after being weathered by the
Great Economic Recession of 2008.











ECONOMIC PERFORMANCE OF THE PHILIPPINES 20

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