MANILA: Merchandise exports fell 3.9 percent in January, extending its decline for the 10th consecutive month on lower earnings across major commodity groups, the Philippine Statistics Authority (PSA) reported yesterday.
Philippine exports have been on the decline since April 2015.
The National Economic and Development Authority (NEDA) said the export sector is in for a bumpy ride this year due to sluggish growth in the global economy.
Earnings from outbound shipments fell 3.9 percent year-on-year in January to $4.2 billion from $4.4 billion in the same period in 2014.
The contraction was mainly caused by decreases in five major commodities out of the top 10 export commodities for the month. These include apparel and clothing accessories, chemicals, machinery and transport equipment, metal components and other manufactures.
Exports of electronic products, the country’s top export with total receipts of $2.142 billion and making up 51.1 percent of the total export revenues for the month, rose five percent year-on-year in January. Semiconductors had the largest share of revenues among electronic exports.
“The year 2016 is expected to be a challenging one for the export sector as the global economy faces sluggish economic recovery and uneven growth. We see global trade growth remaining at a low level as the world copes with soft demand and lower commodity prices,” said Economic Planning Secretary and NEDA director general Emmanuel Esguerra.
Export of manufactured goods fell 2.2 percent in January for a total value of $3.67 billion.
“The fall in exports of manufactured products mirrors the general weakness of the global manufacturing sector. However, worth noting is the five percent increase in the exports of electronic products that registered its eight consecutive month of positive growth in January,” said Esguerra.
Exports of agriculture-based products fell 7.6 percent year-on-year in January to $289.1 million because of lower revenues from coconut and fish products.
“We attribute this to the continued tightness in supply due to persistent dry weather. Also, lower export revenues for fish products can be partly traced to the lower supply of fish in Region XII,” said Esguerra.
Revenues from outbound shipments of mineral products also fell by 27.8 percent to $145.3 million, while exports value of petroleum products declined 17.8 percent to $10 million due to the prevailing low oil price environment.
Esguerra said the government and private sector should take advantage of the trade opportunities offered by economic groupings, trade agreements and the structural transformation of other economies.
“We should engage more actively in information gathering and dissemination, market intelligence, and capacity building of our exporters,” said Esguerra.
