Commodity flow or domestic trade refers to the flow of commodities through the water, air and rail transport systems in the country. Data on the inflow and outflow of commodities in the different regions of the country are used to construct interregional and inter-industry relation tables. These serve as bases in the formulation and implementation of various regional development programs like countryside development and port planning.

Quantity and value of domestic trade declines

The total quantity of domestic trade transactions in the fourth quarter of 2008 went down by 29.6 percent, resulting to 3.73 million tons from 5.30 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.7 percent and 99.8 percent in the fourth quarters of 2007 and 2008, respectively.

In the same manner, total value of domestic trade decreased by 9.5 percent from PhP101.30 billion in the fourth quarter of 2007 to PhP91.68 billion in the same period of 2008. The commodities were shipped mostly through water comprising 99.4 percent, and 99.5 percent in the fourth quarters of 2007 and 2008 respectively.

Food and live animals leads total domestic trade value

Among the commodities that flowed throughout the country in the fourth quarter of 2008, food and live animals contributed the largest value amounting to PhP28.01 billion (30.6%). This was followed by machinery and transport equipment with PhP19.71 billion (21.5%). Manufactured goods classified chiefly by materials were next with PhP12.71 billion (13.9%). Animal and vegetable oils, fats and waxes shared the least value of PhP1.40 billion (1.5%). (See Table 1)

Likewise, food and live animals dominated the domestic trade in the fourth quarter of 2007, with a share of 31.1 percent (PhP31.49 billion) of the total value. Machinery and transport equipment was second with a 16.7 percent share (PhP16.91 billion). Mineral fuels, lubricants and related materials followed with a share of 15.0 percent share (PhP15.23 billion). Contributing the least value of PhP748.58 million was animal and vegetable oils, fats and waxes. (See Table 1)

National Capital Region contributes the largest value of domestic trade

Most of the traded commodities in the fourth quarter of 2008, came from National Capital Region (NCR) with value of domestic trade amounting to PhP29.94 billion (32.7%). Western Visayas came second with PhP13.86 billion (15.1%). Northern Mindanao was next with PhP12.47 billion (13.6%). Central Luzon followed with PhP10.78 billion (11.8%). The domestic trade of Zamboanga Peninsula contributed the least share among the regions with only PhP12.31 million.

For the same period in 2007, NCR had the highest domestic trade share at PhP30.21 billion (29.8%). Northern Mindanao was the second highest contributing region with PhP14.86 billion (14.7%). Western Visayas was next with PhP13.94 billion (13.8%). Central Luzon was fourth with PhP12.98 billion (12.8%). Cagayan Valley remained the least contributing region with only PhP21 thousand domestic trade share.

Central Luzon posts the highest favorable trade balance

For the fourth quarter of 2008, Central Luzon posted the most favorable trade balance at PhP10.53 billion. Other regions which surpassed the billion positive trade balance were National Capital Region (PhP8.79 billion), Eastern Visayas (PhP5.82 billion), and Northern Mindanao (PhP4.43 billion). On the other hand, Central Visayas recorded an unfavorable trade balance of negative PhP19.53 billion. Other regions with more than a billion negative trade balances were Zamboanga Peninsula (PhP3.56 billion), Caraga (PhP2.17 billion), CALABARZON (PhP2.13 billion), and MIMAROPA (PhP1.14 billion).

For the same period in 2007, Central Luzon also realized the most favorable trade balance at PhP12.57 billion. Three other regions recorded more than a billion positive trade balances namely: Northern Mindanao (PhP6.07 billion), Eastern Visayas (PhP4.76 billion), and National Capital Region (PhP4.55 billion. On the other hand, Central Visayas suffered the most unfavorable balance of trade at negative PhP15.53 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of March 16, 2009, and were not included in this special release:
   
   1. Isabela City - Coastwise (October to December 2008)
   2. Sulu - Coastwise (October to December 2008)
   3. Basilan - Coastwise (October to December 2008)
   4. Tawi-Tawi -Coastwise (October to December 2008)
   5. Cebu - Coastwise (October to December 2008)
   6. Zamboanga City - Coastwise (October to December 2008) Air (October to December 2008)

2. As of fourth quarter of 2008 Philippine National Railways (PNR) has not resume its operation.

Source:   National Statistics Office 
                Manila, Philippines