The trade deficit widened by 73 percent in February to $3.06 billion from a year ago, as exports sank for the first time in 15 months, while imports continued to rise at a double-digit rate, data from the Philippine Statistics Authority show.
Merchandise exports fell 1.8 percent in February to $4.66 billion, while imports climbed 18.6 percent to $7.72 billion. Total external trade in goods in February 2018 reached $12.38 billion, up 10 percent from $11.26 billion recorded a year ago.
The National Economic and Development Authority asked businesses in the country to take advantage of the global economy’s solid footing to support the country’s trade performance, especially in terms of exports.
Neda officer-in-charge and Undersecretary Rosemarie Edillon said that while the performance of Philippine exports was lukewarm with the easing of global manufacturing production growth, the domestic manufacturing sector appeared to remain buoyant.
Results of the Monthly Integrated Survey of Selected Industries for February 2018 showed that manufacturing output grew 24.8 percent in volume and 23.6 percent in value from a year ago.
“It is essential for the national government to continuously support Philippine trade, especially exports, by providing an enabling environment to become globally competitive,” Edillon said.
Neda said it was optimistic the country would benefit from the global economy. Based on the latest outlook of the International Monetary Fund, global growth is expected to reach 3.9 percent until 2019, higher than last year’s 3.7 percent.
Data showed that electronic products continued to be the country’s top export earner amounting to $2.58 billion, representing a 55.4-percent share of the total exports revenue in February 2018. Export of this commodity grew 4.6 percent in February from $2.47 billion a year earlier.
Edillon attributed the decline in total merchandise exports in February”•the first time since November 2016″•to lower receipts from agro-based products, manufactures, and petroleum products. Among agro-based products, export of coconut products fell 50.8 percent from a high 66.9 percent growth in 2017.
Edillon said businesses in the Philippines would largely benefit from timely and relevant information on export procedures and documentation, as well as on products that were currently being demanded in the global market.
“For instance, existing exporters to the US and those planning to expand to the US market will be glad to know that the US Generalized System of Preferences (has been extended until Dec. 31, 2020, following the signing of the US Consolidated Appropriations Act last month,” Edillon said.
The US GSP covers about 18 percent of Philippine exports to the country”•including non-alcoholic beverages, electrical machinery and equipment parts”•or about $1.5 billion worth of exports in 2017.
She said agricultural exports were also seen to expand following the ratification of the country’s free trade agreement with the European Free Trade Association by the Senate last month.