Exports barely grew by 0.1 percent in October to $6.31 billion while imports declined 10.8 percent to $9.57 billion, according to the Philippine Statistics Authority.
This resulted in a trade deficit of $3.25 billion in October, lower than the $4.42-billion shortfall in the same month last year. The trade deficit in the first 10 months also went down by 11 percent to $31.258 billion from $35.289 billion a year earlier.
“The modest recovery in the country’s trade figures for October 2019 backs the expectations that the export sector will remain relatively steady despite the global slowdown associated with the US-China trade war. This also aligns well with the country’s overall GDP growth target of 6.0 to 7.0 percent for 2019,” Economic Planning Secretary Ernesto Pernia said in a statement.
“Possible downside risks, particularly the lingering vulnerabilities and spillovers associated with the trade tensions, need to be managed,” he said.
Pernia underscored the need to improve competitiveness through the institutionalization of policies and processes that would streamline, facilitate and bring down the cost of doing business, which are important factors in making the country more flexible to any eventualities that may impact the economy.