Kindly answer the ff. questions.

1. How technology influences the supply of commodities in the market?

2. If the computed inflation rate in 2019 is equal to 5%, what does it say about the change in price from the previous year (2018)?

3. Differentiate GDP, GNP and GNI. Briefly explain how each variable measures growth.

Please refer to the attached article (First Quarter 2021 Philippine Economic Performance) to answer the following questions.

4. Describe the demand and supply sides of the Philippine economy for Q1.

5. What does NPI (Net Primary Income) represent in the report?

6. Discuss the growth rates by industry in Q1 2021.

7. Explain the growth rates of the Philippines in terms of imports and exports of goods and services.

FIRST QUARTER 2021 PHILIPPINE Demand Side households (HH & NPISHs) which contracted by 45.0 ECONOMIC PERFORMANCE TABLE 3. GROWTH RATES BY EXPENDITURE, percent and 30.1 percent, respectively (Figure 3). 2020 Q1 TO 2021 Q1 2020 2021 The Philippine Statistics Authority (PSA) reported that F acts Q1 Q2 03 Q4 01 FIGURE 3. GROWTH RATES IN CONSTRUCTION INVESTMENTS, gross domestic product (GDP) contracted by 4.2 2020 Q1 AND 2021 Q percent in the first quarter of 2021 from -0.7 percent in HFCE 0.2 -15.3 -9.2 -73 48 GFCE 7.0 21.8 5.8 5.1 30.0 26.2 in the same period in 2020 (Figure 1). This translates Investment 12.1 -51.5 -39.5 -32 2 10.0 to PhP187.7 billion real value loss, and marks the fifth igures Fixed capital -2.0 -35.8 -38.0 -30.0 - Construction 2.0 -31.2 -45.4 -36.0 straight quarter of decline of the GDP since the first -10.0 -2.9 -Corp HH & NPISHS Durable Eqpt -2.3 -59.4 -33.8 -24.5 -1 0.7 Gov -1.2 quarter of 2020. For each of the next three quarters BSOD -1.7 2.2 -1.6 -9.5 -30.0 of 2021, the Philippine economy needs to expand by Intel. Prop -30.1 Products 2.4 -22.6 -11.4 4.2 -50.0 roughly 10.1 percent in order to reach the lower end of Congressional Policy and Budget Research Department -45.0 House of Representatives Exports 4.4 -33.5 -15.1 2020-Q1 2021-Q1 the government's full year growth target of 6.5 percent. May 2021 (No. 34) Imports -7.4 -37.3 -20.7 -20.2 FIGURE 1. GDP GROWTH RATES, 2019 Q3 TO 2021 Q1 GDP -0.7 -17.0 -11.6 Source: PSA ource: PSA (CONSTANT 2018 PRICES) Household final consumption expenditure (HFCE) fell Total exports further went down by 9.0 percent in the 10.0 6.3 6.6 Supply Side by 4.8 percent in the first quarter of 2021 from a growth first quarter of 2021 from a -4.4 percent decline in the 50 Industry (IND) further declined by 4.7 percent in the of 0.2 percent in the same quarter in 2020 (Table first quarter of 2020 (Table 3). While exports of goods 0.0 19-Q3 19-04 '20- 20-Q2 20-03 '20-04 21 01 first quarter of 2021 from a contraction of 2.5 percent in 3). Double-digit contractions were recorded in the recovered with a growth of 2.4 percent in 2021 from -5.0 -4.2 the same period in 2020 (Table 2). Construction output following: alcoholic beverages and tobacco, clothing, 2.6 percent in 2020 owing to the faster growth in -10.0 -8.3 declined the most at -24.2 percent followed by mining furnishings, transport, recreation, and restaurant and electronics exports (11.0 percent from 2.7 percent), -15.0 -11.6 and quarrying (-1.0 percent). Manufacturing grew by hotels (Table 4). Food and non-alcoholic beverages, exports of services plunged by 21.0 percent from -6.2 -20.0 -170 0.5 percent from a contraction of 3.3 percent which comprise the bulk of household spending, slid percent (Figure 4). urce: PSA down to 2.2 percent in 2021 from 4.7 percent in 2020. Net primary income (NPI), which is comprised mainly Services (SERV) fell by 4.4 percent in the first quarter TABLE 4. GROWTH RATES BY EXPENDITURE GROUP, FIGURE 4. GROWTH RATES IN EXPORTS OF GOODS AND of remittances from overseas Filipinos, further shrunk of 2021 from a growth of 0.1 percent in the same 2020 Q1 AND 2021 Q1 SERVICES, 2020 Q1 AND 2021 Q1 2020 2021 by 75.8 percent in the first quarter of 2021 from -9.3 period in 2020. The top three services subsectors that 01 01 3.0 2.4 percent in the same period in 2020 (Table 1). Gross contracted the most were the following: other services Food and non-alcoholic beverages national income (GNI) declined further by -10.9 (-38.0 percent), accommodation and food service Alcoholic beverages, tobacco 17 8 -11.9 -7.0 -2.6 Goods rvices Clothing and footwear 0.1 -19.5 -6.2 percent from -1.6 percent. (-20.6 percent), and transportation and storage (-18.8 Housing, water, electricity, gas and other 2.4 0.3 -17.0 percent). fuels TABLE 1. GROWTH RATES IN NPI AND GNI, Furnishings, household equipment -9.4 -10.8 TABLE 2. GROWTH RATES BY INDUSTRIAL ORIGIN, and routine household maintenance 27.0 -21.0 2020 Q1 TO 2021 Q1 2020 Q1 To 2021 Q1 Health 8.4 2020 2021 Transport -7.4 -26.7 2020-Q1 2021-Q1 Q1 Q2 Q3 Q4 Q1 2020 2021 Communication 5.1 NPI -9.3 -24.4 -32.6 -55.9 Recreation and culture -5.7 -32.5 Source: PSA -75.8 GNI -1.6 -17.6 -13.5 -12.1 Q1 Q2 Q3 Q4 Q1 Education 0.8 0.3 -10.9 Restaurants and hotels -143 -16.1 Source: PSA INC -2.5 -21.8 -17.6 -10.6 -4.7 Miscellaneous goods and services 7.9 -0.6 Total imports declined by 8.3 percent in the first quarter 0.2 Among the major ASEAN member states with published SERV 0.1 HFCE -17.1 -10.6 -8.0 of 2021 compared to -7.4 percent in the same period in Source: PSA GDP figures for the first quarter of 2021, two economies 2020 (Table 3). Imports of goods and services shrunk AFF 0.3 1.6 1.2 -2.5 1.2 reported growth: Singapore (SG) at 0.2 percent and Growth in government final consumption expenditure by 1.6 percent and 33.2 percent, respectively (Figure 5). Vietnam (VN) at 4.5 percent. The Philippines (PH) GDP -0.7 -17.0 -11.6 -8.3 4.2 (GFCE) accelerated to 16.1 percent in the first quarter recorded the sharpest contraction followed by Indonesia Source: PSA of 2021 from only 7.0 percent in the first quarter in 2020 FIGURE 5. GROWTH RATES IN IMPORTS OF GOODS AND (Table 3). Meanwhile, investments continued to decline SERVICES, 2020 Q1 AND 2021 Q1 (ID) and Malaysia (MY) (Figure 2). Agriculture, forestry and fishing (AFF) declined by 1.2 as it dropped by 18.3 percent in the first quarter of 2021 FIGURE 2. GDP GROWTH RATES OF MAJOR ASEAN percent in the first quarter of 2021 from -0.3 percent 0.0 (from -12.1 percent). Construction investments again gods ECONOMIES, 2021 Q1 in the same period in 2020. While major crops such -10.0 15-1.6 Services declined by 27.2 percent in the first quarter of 2021 -8.5 as palay and corn posted positive growth rates of 8.6 -3.0 5.0 from -2.0 percent). -20.0 3.0 percent and 6.4 percent, respectively; the decline -30.0 in livestock production by 23.2 percent pulled down Notwithstanding the remarkable growth in investment by -1.0 MY SG VN overall AFF growth. According to the National Economic general government (Gov) at 26.2 percent, construction -40.0 -33.2 -3.0 07 -0.5 and Development Authority, lower livestock output is was pulled-down by declines in investments of both attributed to the ongoing hog crisis owing to the African financial and non-financial corporations (Corp), 2020-Q1 2021-Q1 agencies of ASEAN member states Swine Fever. and households and non-profit institutions serving Source: PSA