Exports recover

After 17-month continuous decline

– After 17 months of decline, Philippine exports recovered and grew by 5.1 percent in September 2016, boosting total merchandise trade by 9.8 percent to USD 12.3 billion during the month.

The Philippine Statistics Authority (PSA) attributed the growth of exports to upticks in all commodity groups, except forest products.

Merchandise imports in August 2016 surged by 13.5 percent to USD 7.1 billion on the back of hefty increases in capital goods and consumer goods.

“Exports of manufactured products may continue to firm up in the near term, possibly riding on the growth of the global industry sector,” said Socioeconomic Planning Secretary Ernesto M. Pernia.

Philippine exports for the period rose to USD 5.2 billion as revenues from manufactures (4.8 percent), agro-based (24 percent), petroleum (71.7 percent) and mineral products (4.7 percent) recorded year-on-year expansion.

Most Asian countries also posted gains in exports for September 2016, pointing to a recovery in global trade.

“Recent developments in China and Japan, which are the Philippine’s 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,” he said.

Aside from lifting the ban on bananas, China has 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, Pernia added

Meanwhile, the NEDA chief also said that expected upticks in prices of petroleum crude might 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.

He added the country would maximize opportunities from existing free trade deals, most notably the recently signed Philippines-European Free Trade Association agreement, along with improved bilateral relations with China.