RCBC chief economist Michael Ricafort (PNA file photo)
MANILA – Demand for the Christmas season will help drive growth in domestic trade in the third quarter of the year, an economist said on Friday.
"Domestic trade could seasonally pick up in the third quarter in view of the seasonal increase in importation and other manufacturing and production activities in preparation for the seasonal increase in demand in the fourth quarter, especially during the Christmas holiday season," Rizal Commercial Banking Corp. chief economist Michael Ricafort told the Philippine News Agency (PNA) in an interview.
Data from the Philippine Statistics Authority earlier showed that the total quantity of domestic trade increased by 1 percent to 5.79 million tons in the second quarter of the year.
By commodity section, machinery and transport equipment led in terms of quantity of domestic trade in the second quarter of 2023 with 1.79 million tons or about 30.9 percent of the total domestic trade.
This was followed by mineral fuels, lubricants and related materials with 1.16 million tons and food and live animals with 0.64 million tons.
However, Ricafort said offsetting risk factors for the rest of the year include higher prices that reduce consumption, as well as higher interest rates that raise borrowing costs, which weigh on investments.
"The typhoon season with storm damage since the latter part of July 2023 and the ghost month starting the second half of August 2023 could have also reduced business and other economic activities, including manufacturing as well as domestic trade," he said. (PNA)
