As passive investments in emerging markets and persistent trade tensions continue to slow global expansion, the government is encouraged to implement reforms to improve the country’s resilience to external shocks.

This was reiterated by the National Economic and Development Authority after the Philippine Statistic Authority (PSA) on Thursday reported the country’s total trade declined by 7 percent in August 2019 due to weaker exports and continued decline in imports.

Socioeconomic Planning Secretary Ernesto Pernia said government should focus on redoubling efforts to support export products where the country has a comparative advantage to help the trade sector recover and pick up more steam.

“We must continue to initiate programs that provide comprehensive packages of support for products with comparative advantages, including related industries, to facilitate expansion in the international market.”

According to the state-run PSA, the total trade in goods stood at $14.91 billion, reflecting a 7 percent decrease from $16.03 billion recorded in the same month the previous year.

Meanwhile, the countries balance of trade in goods booked a $2.41 billion deficit in August, 33.1 percent lower than the $3.60 billion deficit in August last year.

Trade exports, on the other hand, registered a measly 0.6 percent growth for August 2019 supported by the modest performance of agro-based products, forest, and electronic products.

Imports also contracted by 11.8 percent due to the decline in major commodity groups.

Pernia said while it serves to narrow the trade deficit, the continuing decline in imports should be monitored closely as it may be an area of concern as production in sectors requiring import components have also decreased.