Services Surpass Industry, Agri Sectors in Share of the Economy

Manila Bulletin, August 11, 2004 | Go to article overview

Services Surpass Industry, Agri Sectors in Share of the Economy


Byline: EDU H. LOPEZ

The Philippines is becoming a service economy as the percentage of gross domestic product (GDP) from services has exceeded that from the industry or agriculture since 1984.

The percentage of employment in services has also exceeded that from the industry or agriculture, said Dr. Serafin D. Talisayon, vice chairman, Knowledge Management Association of the Philippines.

Talisayon noted that over the last three decades, the countrys export mix had shifted away from the primary sectors such as abaca, copra, and copper towards the tertiary sector ­ the overseas Filipino workers (OFWs).

Over the last two decades, there has been a global shift to service trade and trading in information as the value of international trade grew twice faster than the world output of goods and services.

The service trade has grown faster than commodity trade, while the financial trade has accelerated faster than the trading of goods and services.

Talisayon said that the Internet and e-commerce would accelerate markets for derivative financial instruments and financial trading.

He cited for instance that more than 50 percent of the cost of petroleum is knowledge like in exploration and drilling. …

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