PH factory output declines in January amid COVID-19, Taal impact

The country's factory output experienced a decline in January, with the Volume of Production Index and Value of Production Index dropping by 1.6 percent and 6.3 percent, respectively, although both showed improvement from the previous month.

The National Economic and Development Authority (NEDA) attributes potential dampening effects on consumer-related manufactures, such as food and beverages, to concerns surrounding the COVID-19 outbreak and its impact on tourism and travel.

Output from firms producing intermediate goods for overseas markets is also anticipated to be affected by the ongoing epidemic scare.

NEDA suggests that intensified government actions to monitor and implement mitigating measures, alongside close collaboration with the industry, can temper the negative impact of COVID-19 on the manufacturing sector.

Key strategies proposed include mapping value chains, identifying alternative market sources, and enhancing inventory capacity to buffer against vulnerabilities.

To boost competitiveness and resilience, government agencies are urged to streamline processes, facilitate trade, and reduce transaction costs.

Government support is also deemed necessary for fostering partnerships between MSMEs and larger enterprises, and for leveraging advanced manufacturing technologies to reinforce business continuity plans.

The recent Taal Volcano eruption is also noted as having a temporary impact on the manufacturing sector, particularly in CALABARZON, which accounts for a significant portion of the country's industry output.

In the short term, the government is advised to expedite the rehabilitation of public infrastructure to ensure a swift recovery for businesses and residents in the affected area.