The Philippines’ total merchandise trade grew 9.8% in September 2016, pulled into positive territory by the recovery of exports, according to the National Economic and Development Authority (NEDA).
Based on the report by the Philippine Statistics Authority, exports rose 5.1% after 17 consecutive months of decline while imports went up 13.5%, propelling total trade to reach US$12.3 billion in September 2016 from $11.8 billion in August 2016.
The growth of exports was due to the uptick of all commodity groups except forest products.
“Exports of manufactured products may continue to firm-up in the near term, possibly riding on the growth of the global industry sector,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement.
Exports for the period rose to $5.2 billion as revenues from manufactures (4.8%), agro-based (24%), petroleum (71.7%), and mineral products (4.7%) recorded year-on-year expansions.
NEDA said most Asian countries also posted positive gains in exports for September 2016, pointing to a recovery in global trade.
“Recent developments in China and Japan, which are the Philippines’ largest trading partners in Asia, provide good prospects for merchandise trade. The steady growth of China’s economy is a welcome development, and the Japanese government also appears to be on track in reviving its economy,” Pernia said.
The Cabinet official added that aside from lifting the ban on bananas, China has also announced its intention to buy more high-value commercial crops from the Philippines, like mangoes and coconut, as well as high-end fishery products like lapu-lapu, crabs, and tuna.
Imports
Meanwhile, the double-digit growth of merchandise imports in August 2016 can be attributed to hefty increases in capital goods, which grew 15.8%, and consumer goods, which increased 47.7%. Payments for merchandise imports reached $7.1 billion.
Pernia said that expected upticks in the prices of petroleum crude may push up Philippine import payments in the near- to medium-term. The strong outlook of the domestic economy is also seen to prop up purchases of imported goods.
“Amid these mixed developments and with risks mostly on the downside, the Philippines will continue to focus on bringing Philippine exports to more diverse markets,” said Pernia, who is also director general of NEDA.
“Along with our improved bilateral relations with China, the country will correspondingly maximize opportunities from existing free trade deals, most notably the recently signed Philippines-European Free Trade Association agreement,” he added.
Active manufacturing sector
Meanwhile, the country’s manufacturing sector also posted positive performances in September 2016. The Volume of Production Index continued to grow as it reported an annual increase of 9.9% in September 2016. The Value of Production Index likewise increased 5.4% in September 2016 compared to negative 5.4% for the same month of last year.
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