Exports on the rise.
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Both manufacturing and trade could sustain their growth in the month of January. The officials of National Economic and Development Authority (Neda) which is the state planning agency disclosed this. The cause for this phenomenon, they concluded, was the recovery of global economic prospects.
This became clear by the year to year analyses of the exports of merchandize for the month of January.
The Philippines Statistics Authority (PSA) released the data pertaining to its performance in exports yesterday. It emerged that there was an increase in the exports as compared to the performance for last year.
While the previous year’s results had seen a fall by 3.9% over the earlier year’s performance, this year was different. The trend this year was reversed leading to an increase in January by 22.5% to $5.13 billion.
Thus, the year on year increase of imports was 9.1% or $7.44 billion though it was much slower than the 20.5% hike in the same month last year. Consequently, NEDA declared that the two-way trade stood at $12.6% or an increase of 14.2%.
However, Rosemarie G. Edillon, Undersecretary, NEDA denied that last year’s upward movement was a base effect. He asserted that it was the global economic mechanism conducting a recovery.
Even the Socioeconomic Planning Secretary Ernesto M. Pernia supported his argument stating that the out would continue for some time. This is a good sign and needs support of innovation and infrastructural enhancement to maintain the trend.
For this, the NEDA chief suggested the strengthening of competence particularly in manufacturing and Agriculture. This will be necessary to help meet domestic and external demands. However, he noted, the US with its protectionist policies was likely to create hurdles, he said.
Here, we would require the support of bilateral and multilateral agreements to keep us afloat, Pernia said. Only then can we circumvent the countermeasures of the protectionist forces like the US, he said.
But, he continued, this will require a competitive approach to emerge as an attractive alternative.
He also informed that the volume of production increased by 9.3% in January. PSA’s Monthly Integrated Survey of Selected Industries revealed this for January.
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Written for: Lars-Magnus Carlsson
Saturday, March 11, 2017