PH exports up in May despite electronics decline

MANILA, Philippines – Philippine exports grew 6.9% in May, despite the decline in electronics shipments, the government said Thursday, July 10.

Data from the Philippine Statistics Agency showed export revenues in May rose to $5.5 billion from $5.1 billion in May 2013.

For the first 5 months, exports went up 5.8% to $24.4 billion from $23 billion recorded in the same period last year.

Shipments of electronic products, the country’s top export commodity with a 37% share of the total bill, saw a year-on-year decline of 1.6% to $2 billion.

However, this was offset by stronger sales of minerals, manufactures, total agro-based, and forest products, the National Economic and Development Authority (NEDA) said.

NEDA said revenues from mineral products grew 58% to $625 million in May mainly due to increased shipments to China, Japan, and Switzerland.

Overseas sales of manufactured goods also expanded 3.% year-on-year to $4.2 billion in May.

“The positive outturn in the manufactured segment of the export industry during the period, a reversal from the 3.2% year-on-year contraction in May 2013, was broadly in line with a stronger global manufacturing activity,” NEDA Deputy Director-General Emmanuel Esguerra, said.

Agro-based, forestry products

Revenues from total agro-based exports also increased18.4% to $450.9 million.

Major contributors to this growth were coconut products, and fruits and vegetables.

NEDA said that export revenues from coconut products posted a significant growth of 31.1% in May mainly due to higher international prices.

But the volume of shipments in coconut products fell due to the natural slowdown in copra production, as well as the long-term negative impact of Typhoon Yolanda (Haiyan) in coconut-producing areas and the effect of the coconut scale insect.

“On fruits and vegetables, higher volumes of bananas were shipped to major markets such as Japan, PR China, South Korea, Kuwait, and Iran,” Esguerra said.

“The rehabilitation of banana plantations damaged during Typhoon Pablo in December 2012 also significantly improved supply conditions which supported the exports growth of the said commodity group,” he added.

Forest products also posted a growth of 34.2% to $6.91 million.

Top exports

Japan remains the country’s top export market with a total value of $1.12 billion, accounting for 20.4% of total revenues from merchandise exports during the period. This is followed by the People’s Republic of China with a 17.5% share and the USA with 13.7%.

Stronger sales in minerals, manufactures, total agro-based, and forest products propelled the growth in merchandise exports in May, NEDA said.

Revenues from mineral products grew by 58% to $625 million in May mainly due to increased shipments to the People’s Republic of China, Japan, and Switzerland.

Overseas sales of manufactured goods also expanded by 3.3% year-on-year to $4.2 billion in May 2014.

However, electronic products, which is the country’s top export commodity, saw a year-on-year decline of 1.6% to $2 billion.

Meanwhile, revenues from total agro-based exports also increased by 18.4% to $450.9 million.

Major contributors to this growth were coconut products, fruits and vegetables, and other agro-based products.

Export revenues from coconut products posted a significant growth of 31.1% in May 2014 mainly due to higher international prices, NEDA said.

But the volume of shipments in coconut products fell due to the natural slowdown in copra production, as well as the long-term negative impact of Typhoon Yolanda in coconut-producing areas and the effect of the coconut scale insect.

On fruits and vegetables, higher volumes of bananas were shipped to major markets such as Japan, PR China, South Korea, Kuwait, and Iran.

“The rehabilitation of banana plantations damaged during Typhoon Pablo in December 2012 also significantly improved supply conditions which supported the exports growth of the said commodity group,” Esguerra said.

Forest products also posted a growth of 34.2% during the period, to $6.91 million.

Upbeat yet …

NEDA remains bullish on exports for the rest of the year.

The government expects exports to grow 6% this year, 8% in 2015, and 10% in 2016.

However, while overall export outlook is positive, sales in total agro-based exports may decline due to the adverse impact of a possibly prolonged dry spell in the coming months, Esguerra said.

The negative outturns in shipments of coconut products could also dampen the upbeat outlook, Esguerra added.

As such, policies should remain supportive of higher exports growth, in order to achieve the government’s targets.

“In the short-term, efforts must be intensified to help the areas vulnerable to the adverse impact of a prolonged dry spell. Measures to contain the spread of coconut scale insect must also be stepped up,” the NEDA official said.

In the long-term, the government needs to intensify the Industry Roadmapping Project to ensure the sustainability of manufacturing exports, Esguerra said.

The ongoing Manufacturing Resurgence Program, complemented by continuing measures to improve the country’s business climate, aims to increase overall productivity and innovative capacity of exporters.

As such, the capacity of exporters to improve product quality and packaging in line with internationally accepted standards and practices will also be enhanced, Esguerra said. – Rappler.com