Gradual reopening of economy, reforms, keys to boosting trade

MANILA – The significant improvement in the country’s trade performance in September 2020 suggests that the country’s approach to gradually reopen the economy, along with the strict observance of health protocols, puts us on the right track towards economic recovery, the National Economic and Development Authority (NEDA) said Thursday.

The Philippine Statistics Authority reported Wednesday that the country’s merchandise trade performance registered a slower decline of 9.

2 percent in September 2020 from the previous month’s 17.9 percent contraction, as relaxation of quarantine measures led to an expansion in trade activities.

In particular, merchandise exports reversed its six-month long decline to post a 2.

2-percent growth as outward shipments continue to improve.

Meanwhile, imports fell by 16.5 percent but showed slower contractions in major commodities, such as capital goods, raw materials and intermediate goods, mineral fuels, and consumer goods, compared to the previous month.

“As we continue our efforts to manage the Covid-19 (coronavirus disease 2019) pandemic, measures to support businesses and consumers in Bayanihan 2 will help the economy recover faster. The government needs to pass the remaining recovery programs — the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill, the Government Financial Institutions Unified Initiative to Distressed Enterprises for Economic Recovery (GUIDE) bill, and the Financial Institutions Strategy Transfer (FIST) bill — which will further support Covid-affected sectors recover faster, while promoting the resurgence of trade,” NEDA Acting Secretary Karl Kendrick Chua said.

Other reforms that NEDA is pushing include legislative measures that seek to amend the Public Service Act (PSA), the Foreign Investment Act (FIA), and the Retail Trade Liberalization (RTL) Act.

These are expected to spur investments in logistics and critical infrastructure that will help exporters increase productivity and competitiveness.