The Makati skyline is seen from Skyway Stage 3, July 8, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINE economy grew slightly faster than it initially reported in 2021, the Philippine Statistics Authority (PSA) reported on Thursday.

Gross domestic product (GDP) — the value of all finished goods and services produced in the country at a given period — rose by 5.7% last year, slightly higher than the 5.6% initially reported on Jan. 27.

Economic growth for the fourth quarter of 2021 accelerated to 7.8%, from the preliminary estimate of 7.7%. This was a reversal from the 8.2% contraction it logged in 2020.

On the other hand, last year’s gross national income — the sum of the nation’s GDP and net primary income from the rest of the world — was revised upwards to 1.7% from the earlier estimate of 1.6%.

The services sector for the entire 2021 grew 5.4%, from the previously reported 5.3%. Likewise, the industry sector improved to 8.5%, from the previous estimate of 8.2%.

Major upward revisions in the industry subsectors were observed in the following: construction (10.0% from 9.8% previously); manufacturing (8.8% from 8.6%), and mining and quarrying (5.0% from 2.6%).

The following services subsectors increased from their previous estimates: public administration and defense, compulsory social activities (5.7% from 5.2%), education (8.3% from 8.0%), financial and insurance activities (4.7% from 4.5%), and information and communication (9.2% from 9.1%).

Agriculture, meanwhile, was unchanged at a 0.3% decline.

On the expenditure side, growth in government spending increased to 7.1% last year from the preliminary 7%, while household consumption was unchanged at 4.2%.

The trade in goods and services figures likewise improved, as exports (8% from 7.8%) and imports (13% from 12.9%) expanded more than previously estimated.

Gross capital formation, the investment component of the economy, was revised upwards to 20.3% from 19%.

Meanwhile, the record economic decline due to the pandemic in 2020 was also revised to 9.5%, a tad slower than the 9.6% contraction initially reported.

National account revisions are based on approved revision policy, which is consistent with international standard practices, the PSA said. — Abigail Marie P. Yraola