Merchandise exports bounced back in September to end 17 straight months of year-on-year decline alongside strong growth in imports and manufacturing on the back of recovering global trade ahead of the holiday season, the government reported Thursday.
Preliminary data from Philippine Statistics Authority (PSA) showed that outbound shipments of local goods grew 5.1 percent to $5.211 billion in September from $4.96 billion a year ago.
In a statement, the National Economic and Development Authority said most major commodity groups, save for forest products, posted higher exports at the end of the third quarter.
“Exports of manufactured products may continue to firm up in the near term, possibly riding on the growth of the global industry sector,” Socioeconomic Planning Secretary and Neda chief Ernesto M. Pernia said.
Neda said most neighboring countries also recorded exports growth in September. “Recent developments in China and Japan, which are the Philippines’ largest trading partners in Asia, provide good prospects for merchandise trade. The steady growth of China’s economy is a welcome development, and the Japanese government also appears to be on track in reviving its economy,” Pernia said.
President Duterte’s recent visit to China was also expected to boost Philippine exports of agricultural products to the mainland. “Aside from lifting the ban on bananas, China has also announced its intention to buy more high-value commercial crops from the Philippines, like mangoes and coconut, as well as high-end fishery products like lapu-lapu, crabs and tuna.”
But despite the recovery in September, nine-month exports remained lower than a year ago, hitting $41.691 billion or down 6.2 percent from $44.46 billion last year.
Imports, meanwhile, sustained double-digit growth for the second consecutive month last September, increasing 13.5 percent to $7.101 billion from $6.255 billion a year ago.
Neda attributed the increase in the value of imports to “hefty increases in capital goods (importation), which grew by 15.8 percent, and consumer goods, which grew by 47.7 percent.”
“Expected upticks in the prices of crude oil may push up Philippine import payments in the near- to medium-term,” Pernia said.
Imports from January to September totaled $59.505 billion, up 14 percent from $52.193 billion in the first nine months of last year.
In September, combined exports and imports amounted $12.3 billion, up from $11.8-billion worth of two-way trade last August.
As for manufacturing, PSA data showed that the volume of production index (VoPI) grew 9.9 percent last September, faster than the 3-percent growth in the same month last year, although slower than the 13.4-percent jump in August.
Neda said the sector’s expansion was a result of “sustained increase in capital goods production leaned on strong domestic demand and stable macroeconomic policies.”