Exports contract 5.6% to $58.6 B in 2015

Consistent downtrend since April 

MANILA, Philippines – Exports sustained a nearly year-long downtrend last December, bringing total receipts 5.6 percent lower at $58.65 billion in 2015, the National Economic and Development Authority (NEDA) said in a report.

Citing data from the Philippine Statistics Authority, NEDA said merchandise exports further declined three percent in December 2015 despite the double-digit increase in petroleum sales.

Total exports revenue fell $143 million, reaching $4.7 billion in December 2015 from $4.8 billion in the same month in 2014, it said. Exports have consistently dwindled in 2015, as it was only in March when there was an increase, PSA data showed.

“Advanced and emerging economies continue to face difficulties. In particular, the slowdown in China due to ongoing structural transformation, as well as the contractionary fiscal policies in oil-exporting countries as they adjust to declining oil revenues, pose risks to the Philippine economy this year,” said Economic Planning Secretary and NEDA director general Emmanuel Esguerra.

Lower sales in manufactures, agro-based and mineral products mainly accounted for the drop in December, which tempered increased earnings from petroleum products.

Petroleum exports increased 11.9 percent after three consecutive months of decline due to the recent low oil price environment. But the slowdown in the country’s major trading partners, such as China, dragged down revenues from merchandise exports.

Export of manufactured goods declined 1.8 percent to $4.1 billion in December 2015, after posting a slight improvement of 3.6 percent growth in November 2015.

Electronic products remained the country’s top export with total receipts of $2.529 billion, accounting for 54.3 percent of total revenue in December 2015.

 “As soft global demand is expected to continue, the challenge is to be able to expand export market destinations and diversify product offerings,” Esguerra said.

“But on a positive note, the Philippines’ major trading partners such as the United States, Japan and the euro area are expected to post a slight recovery this year,” he added.

Overall, Esguerra stressed the Philippines should take advantage of the ASEAN Economic Community when it takes full effect this year.

“Expanding market opportunities in emerging export markets such as India and Mexico can boost the country’s merchandise exports, as they have been increasing their demands for consumer products,” he said.

He added the country should remain committed to the implementation of the Manufacturing Restructuring Program (MRP) to complement such market and product diversification efforts.

“Implementing the MRP will rebuild the domestic production base and improve competitiveness through innovation. Given the high multiplier effects and potential for employment generation, the revival of the manufacturing sector is expected to spur domestic employment and investments in the country,” said Esguerra.