Exports fall for first time in 5 months

MANILA, Philippines (UPDATED) – The country’s exports contracted for the first time in 5 months in January as the electronics sector recorded its steepest fall in over a year due to weak global demand.

Data from the National Statistics Office showed exports, one of the main drivers of the economy, fell 2.7% to $4.010 billion in January, from $4.123 billion in the same month of 2012. This was the first fall since August 2012, when exports were down 9%. This was also a reversal of the 10.5% growth registered in December.

Shipments of electronics, the main item accounting for 36.6% of export receipts, plunged 31.9% to $1.466 billion from $2.153 billion in January 2012. The fall was the biggest since November 2011’s 34.44% decline.

The largest electronic group—semiconductors—recorded $1.197 billion earnings, down 23.2% year on year.

The Philippines supplies 10% of the world’s semiconductor market. Industry group Semiconductors and Electronics Industries in the Philippines earlier forecast their exports to grow 5% to 6% in 2013 following a 5.2% decline in 2012.

Top markets

Japan was the Philippines’ largest export market in January, comprising 19.2% or $769.03 million of total receipts. The amount was up 8.8% from January 2012’s $706.79 million.

Korea came next with a 14.1% share or $564.72 million, 229.3% higher than last year’s $171.51 million.

Exports to the next 3 top markets—US, China and Hong Kong—dropped however.

Shipments to the US went down 21% to $522.99 million (13.1% share) in January from $662.12 million a year ago.

Exports to China and Hong Kong fell 28.6% to $422.06 million, and 8.9% to $327.43 million, respectively. – Rappler.com

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