spot_img
27.5 C
Philippines
Friday, March 29, 2024

Trade, manufacturing show signs of recovery from deep slump

- Advertisement -

The economy started to show signs of recovery from the devastating impact of the COVID-19 pandemic, as evidenced by the slight rebound of merchandise trade and manufacturing activities in February, the Department of Finance said over the weekend.

Preliminary data from the Philippine Statistics Authority showed that after a year of decline, total merchandise trade in February amounted to $12.9 billion, up 0.6 percent from $12.8 billion in the same month last year.

Imports in February snapped the downtrend since May 2019 after posting a year-on-year growth of 2.7 percent to $7.60 billion from $7.40 billion.

Exports also continued to show signs of recovery. Data showed merchandise export sales fell 2.3 percent to $5.31 billion in February, following a 4.8-percent contraction in January.

The balance of trade in goods in February posted a deficit of $2.29 billion, an increase of 16.5 percent from a gap of $1.968 billion a year ago. The trade deficit in the previous month recorded an annual decline of -23.4 percent.

- Advertisement -

The recovery trend in trade was also seen in the improvement in manufacturing indicators. In the first three months of 2021, the Purchasing Managers’ Index stayed above 50, indicating expansion of manufacturing activities.

“The rebound in merchandise trade and indicators of expansion in manufacturing activities signify that the green shoots of economic recovery are growing, albeit precariously given downside risks posed by the SARS-CoV-2 virus and the uncertainties of its variants,” the DOF said in an economic bulletin.

It said, however, the spread of the virus needed to be contained and its risks managed, through pharmaceutical and non-pharmaceutical interventions.

“Otherwise, draconian measures will be implemented again and the incipient recovery be, so to speak, nipped in the bud,” it said.

Economic Planning Secretary Karl Chua last week said the government was working to ensure the equitable distribution of vaccines, which could help facilitate the gradual reopening of the economy.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno said earlier the latest rounds of community quarantines implemented in the NCR Plus (including Bulacan, Cavite, Laguna and Rizal) by the government could impact economic recovery in the first half.

Diokno said he was expecting a gross domestic product growth of 6 percent to 7 percent in 2021, instead of the previous estimate of 6.5 percent to 7.5 percent.

The economy contracted by a record 9.6 percent in 2020.

- Advertisement -

LATEST NEWS

Popular Articles