German trade with the Philippines continues to be on an uptrend, with bilateral trade registering a record-high of 38.1 percent increase in the first quarter of 2015 amidst positive feedback of the country’s business climate.
Trade volume between Germany and the Philippines showed a landmark increase to US$ 1.57-billion in 2015 from US$ 1.17-billion registered for the same period last year.
Trade growth remains in favor of the Philippines with exports increased to US$860.6 million during the first quarter of 2015 compared to the US$758.2 Million during the same period last year, according to data by the Federal Statistical Office of Germany.
The German-Philippine Chamber of Commerce and Industry (GPCCI) lauded the double digit growth saying it is proof of the growing interest of German companies in the country.
GPCCI executive director Peter Kompalla cited the latest P3.77-billion contract of German company Voith Turbo to supply railway components and drive-lines for the new 48 light rail vehicle train sets for the MRT3 of the Department of Transportation and Communication (DOTC).
Voith Turbo, represented in the Philippines by Maschinen & Technik, Inc. (MATEC) in the last 36 years is a leader in German drive technology.
Likewise, Kompalla said he is confident that German firms such as Matec Solar Power, engaged in Renewable Energy, will increase presence in the Philippines, which is rich in natural energy resources such as solar, wind and hydroelectric.
Total trade between the two countries reached US$5.24 billion in 2014 from US$ 4.48 billion in 2013.
Kompalla said the double digit growth valued at US$760 million can be attributed to the growing interest of German companies to trade with and invest in the Philippines.
In a press statement, he said the aggressive promotion of the Philippines as an emerging investment destination in Southeast Asia has paid off.
“The Philippines is indeed back in the radar screen of German investors,” the GPCCI official said.
He said many factors contribute to the growing interest in the Philippines such as governance reforms of the Aquino administration and the positive investments grade outlook by credible institutions such as Moody’s and Standard and Poors.
Increase in bilateral trade volume remains in favor of the Philippines with export growth to Germany at 16 per cent to US$3 billion in 2014 compared to US$2.59 billion in 2013.
At the same time, German exports to the Philippines grew by 18 per cent to US$2.24 billion in 2014 from US$ 1.90 billion in 2013
Kompala welcomed the renewed interest of German investors in the Philippines following a more than ten year lull.
GPCCI figures showed that top Philippine exports to Germany include data processing equipment, electrical and optical products; electrical equipment; clothing; food and fodder; as well as chemical products.
On the other hand, top German exports to the Philippines include data processing equipment; electrical and optical products; food and fodder; other vehicles; pharmaceuticals and related and chemical products.
Top German investors in the Philippines include Continental, Lufthansa, car manufacturer Volkswagen, Steag, Bayer, Deutsche Bank and SGV.
German investors are also expanding Business Process Outsourcing (BPO) operations in the Philippines for their accounting and banking services as the country becomes the world’s top BPO center surpassing India.