ABSTRACT
Population Population 88.6 mn Urban population 30.14% Population under 15 31.97% Population 65 and over 3.3% Average annual growth rate (2000 to 2008) 2.04% Geography Land area 300,000 km2 Agricultural area 41% Capital city Manila Population of capital city 1.35 mn Economy Monetary unit Philippines Peso (Php) Exchange rate (average fourth quarter 2008) to: the pound sterling Php 76.26 the US dollar Php 48.44 the euro Php 63.65 the yen x 100 Php 50.49 Average annual inflation (2000 to 2008) 5.6% Inflation rate 9.3% Gross Domestic Product (GDP) Php 7,497.5 bn GDP per capita Php 84,622 Average annual real change in GDP (1998 to 2008) 6.1% Private consumption as a proportion of GDP 70.4% Public consumption as a proportion of GDP 9.5% Investment as a proportion of GDP 5.3% Construction Gross value of construction output Php 609.3 bn Net value of construction output Php 256.5 bn Net value of construction output as a proportion of GDP 3.4%
THE CONSTRUCTION INDUSTRY
Construction Output
2007 Construction output, as measured by the real Gross Value Added amounted to Php58.8 billion or a double digit growth of 19.5% that was spurred by government infrastructure spending. On the other hand, construction investments, as measured by the Gross Value in Construction (GVC) in 2007, reached Php109.0 billion in real terms, a remarkable 18.0% improvement from 5.5% growth in 2006. Public construction activities valued at Php46.1 billion in real terms rose by 30.8%. Meanwhile, private construction activities (valued at Php62.8 billion in real terms) made a rebound of 10.2% from a 3.7% dip in 2006. This could be attributed largely to the increasing demand for condominiums, commercial establishments and tourism facilities. Despite the global crisis that persisted in the fourth quarter and that has spilled into the Year of 2009, the local economy has not atrophied as fourth quarter GDP grew by a respectable 4.5% compared to 6.4% the previous year. Major growth drivers were Trade, Manufacturing, Agriculture and Fishery, Construction and Private Services. Major contribution on the demand side came from increased household spending aided by the growths in investment, construction and government consumption. Meanwhile, the continued double-digit growth in Net Factor Income from Abroad revved Gross National Product up to 6.4% from previous year’s 6.0%. The gross value of output of the construction industry in 2008 was Php609.3 billion or 8.1% of GDP. The net output was Php256.5 billion or 3.4% of GDP. Construction continued to post gains in 2008 with 13.1% from 13.4% registered in the previous year benefiting from the projects of the private sector. A breakdown of new building starts is shown in the table below for the year 2006 to 2007. The table shows an average increase of 5% in commercial buildings.
