MANILA, Philippines - The country's merchandise exports dropped by 6.3 percent in August, the National Economic and Development Authority said on Friday.
This is the fifth consecutive month of negative export growth for the year.
Data from the Philippine Statistics Authority showed that total revenue from Philippine exports declined to US $5.1 billion last month from US $5.5 billion in the same period last year.
“The latest export performance mirrors the recent developments in the global economy: the slowing down of global trade, sluggish momentum in industrial production in major economies, and downward price pressure on commodities,” NEDA Director General Arsenio Balisacan said.
Balisacan added that the export sector is expected to remain constrained in the coming months.
NEDA also reported that selected trade-oriented economies in East and Southeast Asia recorded negative exports growth in August except Vietnam.
“Moreover, the exports sector remains constrained by sluggish global demand, low oil prices, and most importantly, the threat of El Niño to the agriculture sector,” Balisacan said.
The Cabinet official called on policy makers to focus on designing policies that could address the effects of El Niño.
“Over the medium term, we encourage tapping new markets, diversifying export products, and pursuing innovation in order to secure growth, stability and competitiveness for the export sector,” the NEDA chief added.
Balisacan noted that the government must also develop infrastructure, improve business regulations and logistics and lessen foreign investment restrictions in the country.