Sluggish global demand takes toll on Philippine exports

CEBU, Philippines – The sluggish global demand is affecting Philippine exports, an official said, with the export industry growing slowly than projected.

Sonia L. Rodriguez, division chief at the Export Marketing Bureau (EMB) of the Department of Trade and Industry, said external factors from global markets are affecting the country's export growth.

"There are factors to consider in catching up with our [export] target," she said in an interview yesterday at the sidelines of the Philippine Export Competitiveness Program organized by DTI-Cebu.

Rodriguez said the economies of the United States and Japan, which are both important export markets of the Philippines, are still recovering.

Japan is still recovering from the recession it fell into last year while the US is regaining its growth buoyed by the improving jobs market and consumer spending, among others.

According to Rodriguez, the US is the Philippines' third export market. Japan, on the other hand, continues to be the country's top market.

Yesterday, the National Economic and Development Authority (NEDA) reported Philippine exports fell in June 2015 for the third consecutive month despite the recovery of the electronics sector.

"Weak external demand continues to affect the country's external trade performance, particularly for the merchandise exports sector," Economic Planning Secretary Arsenio Balisacan was quoted as saying in the NEDA report.

The Philippine Statistics Authority (PSA) reported yesterday the country's merchandise exports were down 3.3% in June 2015 from the same period last year.

The value of exports during the month dropped to US$5.3 billion from US$5.5 billion last year.

"This decline reflects a still fragile global economy that is felt across the region. Most of the major economies in East and Southeast Asia also registered negative export performance in June 2015, with only Vietnam and PR (People's Republic) China in the positive territory," Balisacan said.

It can be recalled the DTI had already abandoned its 8-10% export target this year amid optimism that overseas shipments would improve by the end of the year.

Previously, Agnes Legaspi, assistant director of DTI's EMB, said there was a need to to revisit the 2015 target, considering the current constraints faced by the sector.

When asked about the target, Rodriguez commented: "10% is quite high."

The government is now projecting the country's exports to post positive growth by 3-5% this year.