Improving export industry to address trade gap: NEDA

MANILA -- The National Economic and Development Authority (NEDA) underscored the need for the government to implement strategies to improve the export industry in the short to medium term to reduce the country’s trade gap.

Socioeconomic Planning Secretary Ernesto Pernia said addressing cumbersome regulations, enhancing trade facilitation, and ensuring better access to trade finance, will help improve the country’s business climate for exports.

“The recent passage of the Ease of Doing Business Act of 2018 should promote trade as it aims to reduce bureaucracy and corruption, factors, which weigh down on economic activity. Its timely implementation is needed to improve trade facilitation,” he said in a statement.

The Philippine Statistics Authority (PSA) reported on Tuesday that the country’s trade deficit expanded to USD3.70 billion in May 2018 from USD2.51 billion during the same month last year, as imports grew double-digit while exports declined slightly,

The PSA said total merchandise trade grew by 5.1 percent to reach USD15.2 billion in May 2018, backed by imports that picked up 11.4 percent that month, after a strong performance of 23.1-percent growth in April 2018.

This was driven by increased inbound purchases of mineral fuels, lubricants and related materials, capital goods, consumer goods, and raw materials and intermediate goods.

Merchandise exports slowed to 3.8 percent in May 2018 from 4.9 percent in April, partly supported by sustained growth in exports of forest products at 77.8 percent, and electronic products, which accounted for 64.9 percent of exported manufacture products in May, registered a slight gain of 2.3 percent.