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The country’s trade gap narrowed by more than 50 percent year-on-year in October as both exports and imports fell, the Philippine Statistics Authority (PSA) reported on Thursday.
Preliminary data from the state statistics agency showed that the balance of trade in goods in the 10th month reached a deficit of $ 1.78 billion, 50.3 percent less than the $ 3.57 billion the previous year. However, it is wider than the $ 1.70 billion gap in September.
This was because outbound shipments fell 2.2 percent to $ 6.20 billion in October from $ 6.34 billion in the same month of 2019, and inbound shipments fell 19.5 percent to $ 6.20 billion. 7.97 billion from $ 9.91 billion the previous year.
Despite the substantial contraction, Acting Secretary for Socio-Economic Planning Karl Kendrick Chua said in a statement that there were positive findings from the data.
He noted that merchandise exports to China and Southeast Asia grew 15.2 percent and 10 percent to $ 944.7 million and $ 1.02 billion, respectively.
Furthermore, imports of capital goods increased in October, compared to September 2020, suggesting that business activities have been responding to the government’s approach for a targeted and gradual reopening. [of the economy] and greater mobility, ”Chua said.
But more could be done to help accelerate the country’s recovery from the coronavirus pandemic, according to the acting head of the National Economic and Development Authority (NEDA).
“As the traditional means of connecting buyers with suppliers are limited at the moment, the government and the private sector must work together to take advantage of digital platforms and alternative means to source and source from the country,” he said.
Chua said NEDA continued to partner with relevant agencies and legislators to push forward proposed amendments to the Public Service Law to open up more opportunities and stimulate investments in critical infrastructure that can increase the productivity and competitiveness of exporters, as well as improve access to online platforms. for business and government services.
“The improvement of the communications infrastructure to promote investments in digital solutions and services, as well as logistics reforms, such as the rationalization of the cargo system, the establishment of strategic storage and cold chain systems to reduce costs and improve competitiveness manufacturers and exporters will play a key role in ensuring a rebound in the country’s commercial sector ”, he added.
A calibrated and gradual resumption of business operations with strict implementation of health and safety protocols remains crucial to recovery, Chua said, and “critical to these efforts is the provision of safe and regular transportation to allow for worker mobility. “.
“Improving the overall climate for businesses to foster entrepreneurship and competitiveness through the recent passage of the Corporate Recovery and Tax Incentives for Businesses bill will accelerate economic recovery by reducing our corporate income tax rate. (CIT) and restructure the country’s tax incentive system, “he said. additional.
Passed in the second and third reading in the Senate on November 26, Create provides a total cut of 10 percentage points in the country’s corporate tax rate, reducing it from 30 to 20 percent for local companies with equivalent taxable net income. to P5 million below, and with total assets (excluding land) that do not exceed P100 million. Other corporations will benefit from having their income tax rate reduced from 30 percent to 25 percent.
The measure also modernizes tax incentives by making them performance-based, targeted, time-bound and transparent.
WITH A REPORT FROM MAYVELIN U. CARABALLO
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