Actual GDP growth in the PH 1st quarter of 2012 was a moderate 4.31%, not 6.4%

“The 6.4% figure they’ve reported is accurate for what it is, but it only tells one version of the story — think of it in the context of the five blind men and the elephant. ” – Ben Kritz.

The actual GDP growth in the 1st quarter of 2012 was a moderate 4.31%, “not 6.4% as the government claims; still remarkably better than the previous quarter, but actually a little short of forecasts.”

Those real GDP figures, however, are based on constant prices from the year 2000. From an analytical standpoint one year is as good as another to use as a benchmark, but in real-world terms, the Pinoy economy and society of 2012 does not have that much in common with the last year of Joseph Estrada’s term in the pre-9/11, pre-Global Economic Crisis days of the peso trading at around 50 to the dollar. If, as the Aquino Administration and its supporters insist, this is truly “P-noy’s” economy, then the only legitimate way to measure his progress is to set the benchmark to the state in which it was delivered into his stewardship. Substituting the end of the 2nd quarter of 2010 – the day he took office – as the ‘constant’ for the year 2000 used now and recalculating the appropriate deflator variable (which in this case ranges from 1.039 to 1.33) to compensate for inflation paints an interesting picture.

Ben Kritz presents a technical Note on Philippine GDP Performance for the first quarter. This presents the data and calculations used as the basis of the article “Why You’re Not Feeling the Country’s Unexpected Economic Growth”. The scope of the GDP analysis covers the term of President B.S. Aquino III todate, from the end of the 2nd quarter of 2010 (30 June 2010) through the end of the 1st quarter of 2012 (31 March 2012)

Technical Note on Philippine GDP Performance

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About Noemi Lardizabal-Dado

View all posts by Noemi Lardizabal-Dado
Noemi, Editor of Blog Watch and features editor of Philippine Online Chronicles is a 54 year old mother to three kids and is married to Atty. Luis H. Dado. She loves being a full time mother and homemaker after retiring as a Researcher/Consultant from the UP Institute for Small Scale Industries in 1987. Now that her children are all college graduates, she devotes her time to grief support, blogging, new media events and using her blogs to promote online advocacies. Her personal blog is at, which garnered numerous awards such as Best Website, Blog Category during the 9th and 10th Philippine Web Awards. Her blog also won in the Blog- Personal Category of the Web Awards 2007 and Globelines Broadband Family Blog Award (in honor of family-oriented blogging) 2007 Philippine Blog Award. Globe also recognized her as Digital Elder in the 2009 Philippine Blog Award.

One Response to “Actual GDP growth in the PH 1st quarter of 2012 was a moderate 4.31%, not 6.4%” Subscribe

  1. Ben Kritz June 3, 2012 at 1:25 pm #

    Thanks for posting this, Noemi. I should point out that I wrote the article before I decided I should clean up my messy notepad and “show my work” with the technical note, so there are minor differences — the best way to handle this kind of exercise is to check, re-check, and check again, a perspective that the country’s economic overseers ought to adopt themselves, I think.

    Just as a general tip for everyone: The nominal (current prices) GDP expressed in per capita terms is, for most of us ordinary people’s needs, the most personally-relevant of the various ways the country’s economic health can be described. When you’re hearing the government (and this goes for governments anywhere, really) patting themselves on the back with the figure they headline in the press release, look for the number above to get a bit of an explanation as to why your own household’s economy is going the way it is. 

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