NEDA: STEADY ECONOMIC GROWTH

Acting Economic Planning Secretary Karl Kendrick Chua has announced that the "economy is steadily" moving away from the economic downturn that COVID-19 pandemic has induced, rattling off the impressive July merchandise trade performance that showed improved export and import figures  against that of June levels.

“Month-on-month growth performance (is) showing respectable growth (and) indicates that the economy is steadily making its way out of the economic downturn,”  Chua said as he ticked off the need to need to sustain the growth trajectory and a handling of the transport sector to assure mobility that could induce economic growth.

Earlier, the Philippine Statistics Authority reported that the country’s total merchandise trade growth remained in negative territory at -9.6 percent in July 2020 against the same period last year. However, this is better than the growth recorded in June and is also the first month with a single-digit negative growth rate since the quarantine period started in March 2020.

On a month-on-month basis, the July figure is 8.2 percent higher than the total trade levels recorded in June. This is due to merchandise exports growing at 5.2 percent in July 2020 compared to the previous month. Imports are similarly growing month-on-month in July 2020 with its levels at 10.7 percent higher than June 2020. This indicates prospects for further improvements.

According to the NEDA chief, worker mobility is one of the critical elements that will help sustain the gradual and calibrated resumption of economic activities.

“We must emphasize the importance of safe and sufficient modes of public transport to allow workers to safely go to back to work and businesses to operate. Subsidies for service contracting need to be considered to incentivize transport owners and operators to operate even with a reduced passenger load,” Chua said.

He also said that the government will continue to pursue fundamental structural reforms jointly with its efforts to improve the country’s healthcare system.

“Reforms related to levelling the playing field such as liberalizing investment regimes to draw in capital and jobs, honing and improving innovative and forward-looking technologies, and producing competitive and unique products and services, remain in the government’s priority plan,” he added.

Chua emphasized that logistics reforms that will rationalize the freight system, establish strategic warehousing, as well as cold chain systems remain important as this will ensure the mobility of goods and complement efforts to improve production.  

The Financial District would like to learn more from its audience. Can you please give us feedback on this article you just read. Click Here to participate in our online survey.