DOMESTIC TRADE in goods by value posted a double-digit decline in the fourth quarter after multiple typhoons disrupted economic activity, the Philippine Statistics Authority (PSA) said, citing preliminary data.
According to the PSA’s Commodity Flow in the Philippines report, the value of trade goods in the quarter fell to P246.22 billion from P326.56 billion a year earlier.
The PSA said domestic trade by value is the outflow value of commodities transported from the place of origin to the place of destination.
Commodity flow includes goods transported by water, air, and rail, with waterborne goods the dominant segment.
The volume of trade declined 25.9% year on year to 6.23 million tons.
“The slowdown in domestic trade can be attributed to natural calamities during the last quarter that have negatively affected supply chains in the country,” Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc. said in an e-mail.
Mr. Erece added that subdued demand caused by global economic uncertainty and higher inflation expectations also slowed domestic trade in the fourth quarter.
In December, headline inflation accelerated to 2.9% year on year from 2.5% in November.
This brought 2024 inflation to 3.2%, in line with the central bank’s target.
Six typhoons between October and November caused more than P22 billion in damage, according to the National Disaster Risk Reduction and Management Council.
Of the 10 commodity groups monitored by the PSA, seven groups declined by value.
These were machinery and transport equipment, down 59.5%, followed by animal and vegetable oils, fats and waxes (-47.2%); food and live animals (-19.4%), beverages and tobacco (-14.7%); mineral fuels, lubricants and related materials (-10.2%); chemicals and related products (-7.8%); and crude materials, inedible, except fuels (-1.5%).
Commodity groups posting growth were manufactured goods classified chiefly by material (25.8%), miscellaneous manufactured articles (9%), and commodities and transaction not classified elsewhere in the PSCC (5.7%).
Food and live animals accounted for the most value among traded commodities at P72.07 billion during the period.
The category accounted for 29.3% of the value of domestic trade in the fourth quarter. Machinery and transport equipment amounted to P47.48 billion (19.3%), and manufactured goods classified by material P45.15 billion (18.3%).
The National Capital Region accounted for the most goods traded by value with 53.3%. Outflows amounted to P131.31 billion and inflows P24.29 billion, resulting a surplus of P107.02 billion.
The value of inflows into the Western Visayas was P46.63 billion or 18.9% of the total.
Mr. Erece said that a rebound is expected in domestic trade, driven by easing inflation and expectations of higher government spending in the runup to the elections.
Inflation cooled to 2.1% in February, the weakest reading in five months. — Pierce Oel A. Montalvo