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The PHILIPPINES ‘export earnings fell again in July, but the National Economic and Development Authority (Neda) sees the single-digit contraction as an improvement.
On Thursday, data from the Philippine Statistics Authority (PSA) showed that export earnings contracted 9.6 percent to $ 5.65 billion in July 2020. This was better than the 12.5 percent published in June 2020.
At a Senate budget hearing Thursday, Acting Secretary for Socioeconomic Planning Karl Kendrick T. Chua said the improvement is one of the signs that his growth expectation of 6.5 to 7.5 percent is achievable next year.
“We believe that 6.5 to 7.5 [percent growth] under our basic assumptions it is achievable as long as the recovery continues, “said Chua.
“The times at the moment are very uncertain and every month we are looking at monthly data on exports, manufacturing production, imports, prices, labor, they all show significant improvement, especially trade data. While we are still in the negative, in reality they are already in the single digits, “he explained.
In a statement later Thursday, Chua said that it is necessary to maintain the gradual and calibrated opening of the economy while ensuring strict adherence to health and safety standards, to support the recovery and make the economy stronger. and resistant.
Neda’s interim boss said worker mobility is one of the critical elements that will help sustain the gradual and calibrated resumption of economic activities.
He added that subsidies for contracting services should be considered to incentivize transport owners and operators to operate even with a reduced passenger load.
Chua also said that the government will continue to carry out fundamental structural reforms in conjunction with its efforts to improve the country’s health system.
“Reforms related to leveling the playing field, such as liberalizing investment regimes to attract capital and jobs, refine and improve forward-thinking and innovative technologies, and produce competitive and unique products and services, remain on the agenda. government priority, “he added.
Chua stressed that logistics reforms that will streamline the cargo system, establish strategic warehouses, as well as cold chain systems, remain important, as they will ensure the mobility of goods and complement efforts to improve production.
Business performance
PSA data showed that export earnings from January to July 2020 amounted to $ 34.13 billion, 16.4 percent less than the export value obtained from January to July 2019.
Of the top 10 commodity groups in terms of export value, eight had annual declines, led by gold, which contracted 41.6 percent.
This was followed by the ignition cable set and other cable sets used in vehicles, airplanes and ships with a contraction of 35.9 percent, and machinery and transport equipment, which decreased by 30.9 percent.
“Export earnings in July 2020 marked the fifth consecutive month in which the value of exports contracted, but the annual decline continued to weaken, as it posted its third consecutive month of slowest decline during the period,” said the PSA.
Meanwhile, the country’s imports worsened in July 2020. PSA data showed that imports contracted 24.4 percent, even less than the 23.1 percent recorded in June 2020.
Total import revenue amounted to $ 7.48 billion in July. The PSA said that this is the fifteenth consecutive month of contraction in imports.
With this, the accumulated import value from January to July 2020 amounted to $ 46.64 billion, which represents a fall of 28.1 percent compared to the import value registered in the same period of 2019.
The decline in imports was due to contractions in the top 10 import commodities led by transportation equipment by 69.2 percent.
It was followed by cereals and cereal preparations, which decreased by 37.8 percent; and mineral fuels, lubricants and related materials, which contracted 36.2 percent.
Export markets
Meanwhile, the country’s main export market in July was the United States, which bought $ 1.03 billion worth of products or 18.3 percent of total exports during the period.
Other main export markets were the People’s Republic of China, with an export value of $ 908.61 million or 16.1 percent of the total; Japan, $ 811.84 million or 14.4 percent; Hong Kong, $ 772.49 million or 13.7 percent; and Singapore, $ 329.82 million or 5.8 percent.
In terms of imports, the country’s main source was the People’s Republic of China, which accounted for 25.2 percent of total imports in July 2020.
The Philippines bought $ 1.88 billion worth of goods from China, down from $ 2.3 billion in July 2019.
The other main import trading partners of the country were Japan, with an import value of $ 726.65 million or 9.7 percent of the total; Republic of Korea, $ 588.92 million or 7.9 percent; The United States, $ 522.66 million or 7 percent; and Singapore, $ 518.86 million or 6.9 percent.
