Trade recovers in August 2016
Total merchandise trade grew by 4.7 percent in August 2016, rebounding from the previous month’s 6.6 percent decline, the National Economic and Development Authority (NEDA) said Tuesday.
The Philippine Statistics Authority said total trade grew to US$11.8 billion in August 2016 from US$11.4 billion in July 2016. This is due to a double-digit increase in imports (12.2 percent) that offset a 4.4 percent decline in exports, said NEDA.
“Strong domestic activity is expected to underpin demand for imports for the latter part of this year. The government should maintain a conducive environment for growth and continue addressing logistical bottlenecks to ensure the smooth flow of trade,” said NEDA Officer-in-Charge (OIC) and Deputy Director-General Rosemarie Edillon in a statement.
The double-digit growth of merchandise imports in August can be attributed to hefty increases in consumer goods, which grew by 59 percent, and capital goods, which grew by 29.9 percent, NEDA said.
The decline in exports for August was slower than the double-digit declines observed in June and July.
“Given the sluggish external environment, the country should focus on diversifying its export markets and improving productivity and competitiveness of industries. With traditional export markets such as Japan and the United States still showing weak appetite for Philippine exports, new markets should be explored,” Edillon said.
But mineral products, which grew by 10 percent, and electronics, which grew by 11.6 percent, mitigated the decline in total outbound shipments for August. DMS
