Improved China relations perk up Philippines trade in Q1

Trade was the main benefi­ciary of the improved bilateral relations between the Philip­pines and China as merchan­dise exports picked up in the first quarter.

Exports of goods in the first quarter jumped 18.3 percent to $15.5 billion from $13.11 billion in the same pe­riod last year, data released recently by state agency Philippine Statistics Authority (PSA) showed.

For March alone, exports grew 21 percent, a turn­around from the 15.1 percent contraction a year ago.

Revenues last March amounted to $5.58 billion compared to $4.61 billion in the same month in 2016.

“The figures received a big help from the greater opening market in China with much improved relations,” Trade Secretary Ramon Lopez said.

In the first quarter, Philippine exports to China jumped by 29.6 percent to $1.63 billion from $1.26 billion in the first quarter.

China contributed 10.5 percent of the total export revenues from January to March. Its share in the country’s exports receipt also expanded from 9.6 percent in the same period last year.

“We expected that growth mainly contributed by exports to Chinese market,” Philippine Exports Confederation Inc. (Philex­port) president Sergio Ortiz-Luis Jr. said.

Ortiz-Luis said exports to Hong kong increased by 13.1 per­cent to $2.03 billion in the first quarter from $1.43 billion a year ago.

Hong Kong is the country’s second largest trading part­ner for the period, while China ranked fourth.

“We are looking forward to this year, and the next years that China will be a dominant market for our exports,” Or­tiz-Luis added.

The National Economic and Development Authority (Neda) said trade recorded a 22.7 percent growth in March this year, following notable progress in exports and im­ports.

Total trade grew to $13.5 billion, with imports and ex­ports growing 24 percent and 21 percent, respectively, PSA figures showed.

“Philippine trade during the first quarter of this year has been robust, growing a sol­id 18.5 percent. We are really optimistic that we can sustain this momentum in the com­ing months,” said Neda Offi­cer-in-Charge and Undersec­retary Rolando Tungpalan.

This brings the first quarter growth of imports to 18.6 per­cent and exports to 18.3 per­cent in 2017.

Exports in March recorded earnings of $5.6 billion, mainly driven by sales of manufac­tured goods at 16.5-percent growth, total agro-based prod­ucts at 33.6 percent growth, and mineral products at 94.2 percent growth.

In terms of major markets, exports have been supported by the sharp increase in re­ceipts from Hong Kong (38.9 percent), China (38.9 percent), South Korea (7.3 percent), Tai­wan (17.5 percent), US (20.4 percent), and EU (56.2 per­cent).

In the same period, im­ports payments rose to $7.9 billion. This was led by pur­chases of capital goods, raw materials and intermediate goods, mineral fuels and lubri­cants, and consumer goods.

In terms of trade growth in March 2017, the Philippines has overtaken Indonesia’s 20.9 percent, Malaysia’s 20.4 per­cent, Vietnam’s 20.2 percent, and Thailand’s 13.8 percent.

“These figures support our view that the Philippines will be the fastest-growing economy among the Asean-5 this year,” said Tungpalan.

This could be anchored on recovering external de­mand and strong domestic consumption and investment activities.

“We aim to follow-through by forging stronger connec­tions with our Asean neigh­bors as merchandise trade with them comprises a sub­stantial share of 21.9 percent of our country’s total trade in the first quarter,” Tungpalan added.

He also pushed for inno­vation-led developments and noted that to fully leverage on the region’s growth, micro, small, and medium enterpris­es must be integrated in glob­al value chains.