Manufacturing output growth slowed in March
Manufacturing output in the country grew at a slower pace in March amid calls for the government to implement measures to boost the country’s industrial sector.
The National Statistics Office reported Friday that the volume of production index (VPI) for manufacturing grew 1.2 percent in March, decelerating from 8.3 percent in February and 16.6 percent in January.
Economists said that while there were early signs of an improving industrial sector in the country, measures must be put in place to make the growth not only robust but sustainable as well.
They said the Philippines needed to further strengthen the industrial sector for the benefits of the growing economy to translate to poverty reduction. Compared to the services sector, which has been a key driver of the economy, the industrial sector has a bigger multiplier effect and is capable of hiring people who have not finished college.
The Asian Development Bank said in one of its recent reports on the Philippines that the country needed to make its economic growth inclusive—which meant the benefits of the expansion should reach the poor as well. It said an effective way to do this was to boost the manufacturing sector.
The slowdown in the growth of the volume of manufacturing output in March came with the measly growth of the country’s export sector. The NSO also reported yesterday that merchandise exports for the month reached $4.33 billion in March, up only 0.1 percent from $4.32 billion in the same month last year. The measly growth in global demand for Philippine-made goods dampened production of the manufacturing sector.
Also, the NSO reported that the VPI, which indicates manufacturing performance in terms of the total value of the goods produced, continued its downward trend. It contracted by 7.9 percent in March after declining by 2 percent in February and after growing by 5.8 percent in January. Michelle V. Remo
