How has the structure of the Philippines GDP changed over the years?
GDP composition
GDP can be determined in three ways, all of which should, in principle, give the same result. They are the production (or output) approach, the income approach, and the expenditure approach. The expenditure approach is summarized in the formula: GDP = C (private consumption) + I (Investment) + G (public consumption) + X (export of goods and services) – M (import of goods and services).
The production approach measures the market value of all final goods and services calculated during the period. It sums up value add of each production process to avoid double counting. The value-added shares presented in the World Development Indicators for agriculture, industry, and services may not always add up to a hundred percent due to FISIM and net indirect taxes.
The Philippines GDP composition
Philippines economy is traditionally domestic-based, relying more on private consumption. During the 1990s, it started to rely more on export (X) as a way to boost the economy. However, after the 1997 crisis, there has been a gradual shift back to the traditional structure, with Export (X) proportion in the GDP decreasing and Investment increasing. On the production side, Service has long been the dominant sector.
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