Signs of economic recovery are growing amid a rebound in merchandise trade and increasing manufacturing activities, however risks brought by the coronavirus pandemic remain, the Department of Finance (DOF) said in a statement over the weekend.
In its latest economic bulletin, the DOF pointed out preliminary data from the Philippine Statistics Authority which showed that after exactly a year of decline, monthly total merchandise trade regained lost ground, even if marginally, in February.
Total merchandise trade in February amounted to more than $12.9 billion, up by 0.6 percent from the same month of last year’s $12.8 billion.
Imported goods in February 2021, which amounted to $7.6 billion, increased at an annual rate of 2.7 percent. The value of imports in February registered an annual growth rate after posting a downward trend from May 2019 to January 2021. The last positive growth rate for imports was recorded in April 2019 at 2.9 percent.
However, the country’s total export sales in February 2021, amounting to $5.31 billion, still contracted at an annual rate of 2.3 percent, from an annual decrease of 4.8 percent in the previous month.
The DOF said the recovery trend in trade is also seen in the improvement in manufacturing indicators.
In the first three months of 2021, manufacturing 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.
“The spread of the virus has to be contained and its risks managed, through pharmaceutical and non-pharmaceutical interventions alike. Otherwise, draconian measures will be implemented again and the incipient recovery be, so to speak, nipped in the bud,” the agency added.
