Trade deficit widens to $3.14B in March
Credit to Author: ANNA LEAH E. GONZALES| Date: Wed, 08 May 2019 16:25:08 +0000
THE country’s trade deficit widened to $3.14 billion in March from $2.34 billion a year ago and $2.79 billion in February as imports expanded and exports contracted, the Philippine Statistics Authority (PSA) reported on Wednesday.
In a statement, the state-run statistics agency said total export sales in the third month of the year slipped by 2.5 percent to $5.88 billion from $6.02 billion in 2018, while inbound shipments increased by 7.8 percent to $9.01 billion from $8.36 billion year-on-year.
It blamed the export decrease on the decline in sales of machinery and transport equipment (-10.2 percent), other manufactured goods (-8.1 percent), electronic products (-3.7 percent), and metal components (-1.2 percent).
It attributed the import increase to cereals and cereal preparations, miscellaneous manufactured articles, telecommunication equipment and electrical machinery, other food and live animals, plastics in primary and nonprimary forms, industrial machinery and equipment, and electronic products.
Total external trade in goods reached $14.89 billion, up 3.5 percent from $14.39 billion last year.
To increase exports, the National Economic and Development Authority (NEDA) is urging local producers to diversify their products and seek new markets, especially those abroad.
“To match this effort, the government continues to explore nontraditional markets, such as Eastern European countries, and is seeking to strengthen ties with traditional trading partners,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement.
According to him, the Trade department’s Export Marketing Bureau is looking at non-electronic products, including cars, desiccated coconut, coconut oil, and footwear and wearables, as new export growth drivers.
“Recently, the Philippines has also secured a commitment from the United Kingdom on continuing the same level of market access to UK post-Brexit, similar to the EU’s (European Union) Generalized Scheme of Preferences,” he said.
Under this scheme, vulnerable developing countries pay fewer or no duties on exports to the regional bloc, giving them valuable access to markets there.
The NEDA chief also said the Philippines and South Korea’s move to pursue a bilateral free trade agreement could also increase exports.
“To put the Philippines in a more competitive stance, it is crucial to open up domestic sectors to foreign participation through the proposed amendments to the Foreign Investment Act, Retail Trade Act and Public Services Act,” Pernia added.
This, he said, will help attract multinational firms to invest and set up their manufacturing operations in the country.
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