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Submitted by El Joma on
dear eric, may i ask for your kind guidance in understanding two points? 1. when you say that above that "private consumption accounts for over 75 percent of GDP" how do you compute that? 2. how can it be said that the philippines' annual remittances worth us$18.6billion (estimate for 2008 by world bank: http://siteresources.worldbank.org/INTPROSPECTS/Resources/RemittancesData_March09-Release.xls) is calculated at 11.6% of the philippine gdp. i tried to verify this the following way: 1. i got the philippine gdp for 2008 (http://222.127.10.196/cgi-bin/st2.cgi?/eds/db/national/national/national_accounts_phil_a.sc) but found that it was in pesos: php1,432,088,000,000.00 2. i got the official average peso dollar exchange rate for 2008 (http://www.bsp.gov.ph/statistics/spei_new/tab25.htm): php44.4746:us$1. 3. when i divide php1,432,088,000,000.00 by 44.47 i get us$32,200,132,210.29. 4. when i divide the us$18.6billion with the us$32.2billion, i get 57.7%, not 11.6% now verifying even further: the world cia factbook (https://www.cia.gov/library/publications/the-world-factbook/geos/RP.html) places the philippine estimated 2008 GDP at us$320.6billion (based, it says, on purchasing power parity) or us$168.6billion (based on the official exchange rate). could you help me to understand how it can be said that the philippine remittances of 2008 is 11.6% of its gdp? thank you very much! el joma iloveapu.blogspot.com