Covid-19 brings Ph trade down in March 2020

Philippine international trade is down in March 2020 because of the COVID-19 pandemic and trade restrictions set in response to it. 

The Philippine Statistics Authority says the country’s total merchandise trade dropped to US$11.44 billion - its lowest level in two years.

This trade performance is 25.7 percent lower than the US$15.40 billion recorded in the same month the previous year. Exports declined by 24.9 percent and imports 26.2 percent. 

Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua sees some improvement next year provided that certain adjustments will be made in the way business is done. 

“Merchandise trade may recover in 2021, but this will depend on how fast we can contain the spread of COVID-19 and mitigate its economic impact through government policies to support affected industries and workers,” Chua said.

 

Chua adds that the export industry needs to be more responsive to the changes in consumer spending and redesign their product lines accordingly. 

An economic recovery program is in the works. Chua reveals they are now working with Congress to craft such a measure that will benefit small and medium enterprises.

“The program will include highly targeted tax incentives that are time-bound, transparent, and performance-based to help us attract the right types of investments and help firms recover,” he said.

Also in the pipeline are wage subsidies and guaranteed loans for critically-affected export, import and supply chain industries.