Trade of goods up 5.8% in 2016—Neda

Merchandise trade grew 5.8 percent last year from a year ago, backed by double-digit growth of imports that offset exports decline, according to the Na­tional Economic and Devel­opment Authority (Neda).

Based on a report by the Philippine Statistics Authority, the full-year 2016 total trade reached $137.4 billion, with the 14.2-growth in imports mitigating the 4.4 percent de­cline in exports.

“This means that we need to keep diversifying and ex­ploring new markets, in addi­tion to fully tapping our exist­ing trade agreements to push further our upward trajectory,” said Socioeconomic Planning Secretary Ernesto M. Pernia.

Meanwhile, growth in December 2016 reached 12.9 percent ($12.9 billion) backed by the rebound in exports (4.5 percent) and continued increase in imports (19.1 per­cent).

In the same period, ex­port earnings jumped to $4.9 billion propelled by positive growth in all major commod­ities, led by agro-based prod­ucts, petroleum and mineral products, and manufactured goods.

“This demonstrates the recovery of our agricultur­al sector from the effects of the El Niño. It also indicates the positive contributions of mining and petroleum to the economy. This implies that we will have to find a wholesome balance between mining de­velopment and environmental protection,” the Cabinet offi­cial said.

Also, import payments grew to $7.4 billion due to the expanding demand for capital goods, consumer goods, and raw materials and intermedi­ate goods, despite the drop in mineral fuels and lubricants.

Moreover, the country’s increase in exports receipts from its neighbors, largely from China (36.6 percent) and Taiwan (10.5 percent), was able to offset the decline from other markets.

Only Vietnam and the Philippines posted positive gains for the 2016 merchan­dise trade as other selected Asian countries remained weak.

“If we want to continue being in the forefront, we need to create policies that enhance and expand opportunities for industries, expand our infra­structure, and shift to a knowl­edge-based economy. We also need to push for reforms that will sustain growth such as the comprehensive tax reform package, which could provide additional impetus to con­sumption and investment,” said Pernia.

He added that the country needs to instill a global mind­set on MSMEs and provide them a conducive business environment. This can be done through helping them address internal and external constraints to their develop­ment and trade potential. He noted that all these strategies are included in the proposed Philippine Development Plan 2017-2022.