Connect with us

Hi, what are you looking for?

Economy

PHL lags in global export recovery

THE recovery in global trade is expected to slow down in the first quarter as uncertainty over the pandemic remains. — PHILIPPINE STAR/EDD GUMBAN

PHILIPPINE EXPORT performance remains below East Asian economies that are leading global trade recovery, a United Nations (UN) report said.

According to the UN Conference on Trade and Development (UNCTAD) global trade update released on Tuesday, East Asian economies have been leading global trade’s recovery from the effects of the coronavirus disease 2019 (COVID-19).

Economies like China, Taiwan, Vietnam, and Korea posted global market share gains in exports.

Philippine export performance lags in East Asia and the Pacific

“East Asian economies have been leading the recovery process with strong export growth and gains in global market share,” UNCTAD said, noting most manufacturing sectors rebounded in the fourth quarter, apart from energy and transport.

The UNCTAD report showed the Philippines scored 0.41 in export performance for the 11-month period in an index in which a higher score indicates above average performance. In contrast, China scored 0.56, South Korea at 0.43, Vietnam at 0.63, and Thailand at 0.42.

The Philippine export volatility is 0.44, showing higher vulnerability than China (0.39), South Korea (0.06), Vietnam (0.39), and Thailand (0.13).

UNCTAD said the pandemic impacted not just global demand but the relative competitiveness of countries.

“The competitiveness of countries has changed across sectors, with some economies gaining market share in some sectors while losing competitiveness in others,” it said.

China was able to capture more markets, gaining competitiveness in chemicals, metals, textiles, transport equipment, pharmaceuticals, and precision instruments.

In contrast, the Philippines lost competitiveness in machineries, one of its top export sectors, which declined 7% in the first 11 months of 2020.

Philippine goods exports last year declined 10.1% to $63.77 billion.

Government export targets for this year and 2022 were revised to reflect the extent of the impact of the pandemic, aiming for $105 billion.

Q1 SLOWDOWN SEEN
Meanwhile, the recovery in global trade is expected to slow down in the first quarter as uncertainty over the pandemic remains.

“The projections for Q1 2021 indicate a slowdown in the recovery of trade in goods (a 1.5% drop relative to Q4 2020) and a further decline for trade in services (a 7% drop relative to Q4 2020), largely because of continued disruptions in the travel sector,” UNCTAD said.

“However, projections remain imprecise due to persisting concerns about COVID-19 and uncertainty about the magnitude and timing of stimulus packages in some major economies.”

In 2020, global trade saw a 9% drop in value, with trade in goods slipping 6% and trade in services falling 16.5%.

“The effect of COVID-19 on global trade was most severe during the first half of 2020 with a drop in value of about 15%. Global trade began to recover in Q3 2020 and more strongly in Q4 2020,” UNCTAD added. — J.P. Ibañez

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

KAI Sotto has taken his talents from Australia to Japan to play for the Hiroshima Dragonflies. The Dragonflies yesterday announced the signing of the...

Economy

AFTER a 17-year wait, Grandmaster (GM) Darwin Laylo is back on top as the country’s top chess player. The 42-year-old Mr. Laylo recalled the...

Economy

PHILIPPINE pool queen Rubilen Amit is far from calling it a career. But when the time comes, she hopes to leave a legacy not...

Economy

CAVITE Governor Jonvic Remulla will take the place of Samahang Basketbol ng Pilipinas (SBP) President Al Panlilio as the country’s chef-de-mission (CDM) to next...

Economy

THE PREMIER League (PL) has referred Manchester City to an independent commission over more than 100 alleged breaches of finance rules since the club...

Economy

PHOENIX Suns President and CEO Jason Rowley resigned Monday, hours before the team’s sale was officially approved by the National Basketball Association (NBA) Board...

You May Also Like

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.