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.
Agro-based products, manufactures, mineral and petroleum products continued to register negative growth.
Pernia said opportunities from free trade agreements (FTAs) should also be maximized by facilitating programs that will increase awareness of industry players on the benefits of these agreements.
The NEDA said vehicle autoparts, coconut, bananas, travel goods and handbags, tuna, carrageenan, and activated carbon should be given better exposure, as these could potentially become major drivers of exports growth.
Pernia was optimistic that trade deficit would improve over the coming months.
“I think our manufacturing sector did well in May, including manufacturing industries for exports, so I think exports performance will improve in the coming months,” he earlier said.
Pernia further said there was also a need to ramp up tourism and other service exports to make up for the slow movement of goods exports in the global market. (Leslie Gatpolintan/PNA)
