MANILA, Feb. 10 (Xinhua) -- The Philippines' merchandise trade in 2016 grew 5.8 percent from 2015, backed by double-digit growth of imports that offset exports decline, the National Economic and Development Authority said on Friday.
The Philippine Statistics Authority data showed that total trade reached 137.4 billion U.S. dollars last year, with a 14.2-percent growth in imports mitigating a 4.4-percent decline in exports.
"This means that we need to keep diversifying and exploring new markets, in addition to fully tapping our existing trade agreements to push further our upward trajectory," said Socioeconomic Planning Secretary Ernesto Pernia.
The data also showed that growth in December 2016 reached 12.9 percent (12.9 billion U.S. dollars) backed by a 4.5-percent in exports and continued a 19.1-percent increase in imports.
The data also showed that export earnings jumped to 4.9 billion U.S. dollars during the same period propelled by positive growth in all major commodities, led by agro-based products, petroleum and mineral products, and manufactured goods.
"This demonstrates the recovery of our agricultural sector from the effects of the El Nino. It also indicates the positive contributions of mining and petroleum to the economy. This implies that we will have to find a wholesome balance between mining development and environmental protection," Pernia said.
Moreover, the data showed that import payments grew to 7.4 billion U.S. dollars due to the expanding demand for capital goods, consumer goods, and raw materials and intermediate goods, despite the drop in mineral fuels and lubricants.
Pernia added that the country's increase in exports receipts from its neighbors, largely from China, which registered 36.6 percent, was able to offset the decline from other markets.
"Only Vietnam and the Philippines posted positive gains for the 2016 merchandise trade as other selected Asian countries remained weak," Pernia said.
"If we want to continue being in the forefront," Pernia said, "We need to create policies that enhance and expand opportunities for industries, expand our infrastructure, and shift to a knowledge-based economy."
Pernia said the Philippines needs to instill a global mindset on micro, small and medium enterprises and provide them a conducive business environment.
"This can be done through helping them address internal and external constraints to their development and trade potential. He noted that all these strategies are included in the proposed Philippine Development Plan 2017-2022," Pernia said.
