Exports drop for 15th straight month in June

MANILA, Philippines – Merchandise exports fell 11.4 percent in June, its 15th straight month of decline, due to the persistent weak demand from major export markets, the National Economic and Development Authority (NEDA) said yesterday.

Based on Philippine Statistics Authority (PSA) data, total export receipts fell to $4.8 billion last June from $5.4 billion in the same month last year due to lower sales across commodity groups. These include mineral products; machinery and transport equipment; other manufactures; chemicals; woodcrafts and furniture; ignition wiring set and other wiring sets used in vehicles, aircrafts and ships; electronic products; metal components; and coconut oil.

Total export revenues in the first half also fell 7.5 percent to $26.83 billion from $29 billion in the same period a year ago.

Outbound shipment of electronic products, which accounted for 51.1 percent of total export revenues in June, contracted 5.1 percent to $2.429 billion in June from $2.558 billion registered in the same month last year.

Exports to traditional markets (Japan, US, China, Singapore, Germany, Thailand, Korea and Netherlands)  went down, except for Hong Kong and Taiwan, which posted a 3.2 percent and 2.2 percent growth, respectively.

Socioeconomic Planning Secretary and NEDA director general Ernesto Pernia said the Philippines must diversify and upgrade its export products to remain competitive.

“We must continue to improve our efforts in ensuring an enabling environment where industries can upgrade and improve their competitiveness,” he said.

An example would be transforming the agriculture sector from traditional farming to a globally competitive agribusiness sector.

“This can be done by effectively linking the agriculture sector to the local and global industry supply chain,” said Pernia.

Almost all Asian countries, except for Vietnam and India, experienced weak, albeit improving, export performance in June.

“With the slow global economic recovery, the country should identify non-traditional markets such as in Europe and within the ASEAN region, to reduce the external shocks from times of weak demand from traditional markets,” said Pernia.

He said the government should also ensure progress on its spending program for infrastructure especially those dedicated to transportation and logistics.