PH exports continue decline in June

MANILA, Philippines – Philippine exports fell for the 3rd consecutive month in the year, despite the recovery of the electronics sector in June 2015, the National Economic and Development Authority (NEDA) reported Tuesday, August 11.

Economic Planing Secretary Arsenio Balisacan said that weak external demand continues to affect the country’s external trade performance, particularly for the merchandise exports sector. 

“Year-to-date outcome, in terms of both value and volume, suggests fragility in the demand, particularly in major trading partners,” Balisacan said.

Philippine merchandise exports fell by 17.4% in May, the sharpest drop since December 2011.

The Philippine Statistics Authority reported Tuesday that the country’s merchandise exports declined by 3.3% in June 2015 from the same period last year on account of lower revenues from total agro-based and mineral products.

The value of exports in June 2015 dropped from $5.5 billion last year to $5.3 billion.

Balisacan said the decline reflects a still fragile global economy that is felt across the region.

Most of the major economies in East and Southeast Asia also registered negative export performance in June 2015, with only Vietnam and People’s Republic China in the positive territory, the NEDA chief said.

Electronic sector gains momentum

The country’s higher sales of exported manufactured goods (3.4%), particularly electronics, and petroleum tempered the exports decline during the month.

The electronics sector gained momentum as exports of electronic products rose by 9.5% during the month, buoyed by semiconductors (16.9%), a strong reversal from the year-on-year reduction of 7.5% in the previous month.

Electronic products remained as the country’s top export with total receipts of $2.44 billion, or 46.2% of total exports revenue in June 2015, the Semiconductor and Electronics Industries in the Philippines (SEIPI) reported Tuesday.

Semiconductors, which has the biggest share in Philippine exports at 33.3% among electronic products, increased by 16.9% from $1.50 billion in June 2014 to $1.76 billion in June 2015.

“The country’s relatively strong semiconductor exports emulated the progress in the global semiconductors market as worldwide sales continued to expand at its 26th consecutive month,” Balisacan said, citing SEIPI’s report.

Agri exports fall

Revenues from the country’s agricultural exports continued to fall in June 2015, marking its fifth consecutive month of double-digit decline for the year.

The value of outward shipments of agro-based products fell by 24.9% on account of lower revenues from fruits and vegetables, sugar and coconut products, and other agro products.

Exports of mineral products decreased by 26.2% in June 2015 due to lower earnings from copper metal and other mineral products.

Also, mineral product exports to the country’s top markets posted steep declines in June 2015, particularly China, Switzerland, and Thailand.

The country’s recent external trade performance is also partly due to an abundant supply of industrial commodities, thus revenues from mineral and agro-based exports are seen to continue to decline in the short-term due to falling prices, Balisacan said.

Remaining hopeful

Despite the June exports results, Balisacan is hopeful as positive economic developments in the United States are expected to add momentum to exports growth particularly in consumer goods, given strong employment figures.

Thus, Balisacan called for improvements in bureaucratic procedures and industrial infrastructure, with both the government and the private sector should intensify programs to diversify export products.

In addition to exports diversification, the country should also tap opportunities in the Association of  Southeast Asian Nations bloc and explore trade opportunities in other emerging markets.

Balisacan added the government should fast track projects intended to make the business climate more conducive for investments and employment generation, as well as policies designed to increase the purchasing power of consumers, he said. – Rappler.com