Metro Manila (CNN Philippines) — Philippine exports have declined for a third straight month, according to figures from the Philippine Statistics Authority (PSA).
Save for March 2015, exports have declined in all months since December last year.
A report released by the government agency on Tuesday (August 11) revealed that export revenues totaled $5.28 billion in June, equivalent to a 3.3 percent slide from the $5.46 billion posted in the same month last year. The PSA said that the contraction was brought about by the decrease of six out of the top 10 major commodities for the month.
However, National Economic and Development Authority (NEDA) chief Arsenio Balisacan said in a statement that the slump reflects a “still fragile” global economy affecting the country’s neighbors.
“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.”
“Weak external demand continues to affect the country’s external trade performance, particularly for the merchandise exports sector. Year-to-date outcome, in terms of both value and volume, suggests fragility in the demand, particularly in major trading partners,” he added.
The country’s semiconductor industry bucked the overall trend, having posted a 16.9 percent year-on-year growth in sales — a reversal from May’s 7.7 percent drop. As a whole, exported manufactured goods registered a 3.4 percent increase in sales.
“The country’s relatively strong semiconductor exports emulated the progress in the global semiconductors market as worldwide sales continued to expand at its 26th consecutive month, as reported by Semiconductors Industry Association,” noted Balisacan.
On the other hand, agricultural exports remained in the red in June, marking the fifth consecutive month of a double-digit decline. Receipts from agro-based products sharply fell by 24 percent to $347.91 million, from $463.32 million the previous year.
“In addition to the frail demand from major economies, the country’s recent external trade performance is also partly due to an abundant supply of industrial commodities, thus revenues from mineral and agro-based exports are seen to continue to decline in the short-term due to falling prices,” explained Balisacan.
Exports of mineral products also posted a double-digit plunge of 26.5 percent, which NEDA attributed to lower earnings from copper metals and other minerals.
Japan remained the as top destination of Philippine exports, having accounted for a 23.4% of June’s total exports. The U.S. and China (excluding Hong Kong) stood at second and third, respectively, with equivalent figures of 13.6 percent and 11.4 percent.
When grouped according to global region, the bulk of Philippine exports went to East Asia (54.9 percent), followed by Southeast Asia (13.1 percent) and the European Union (11.7 percent).
Looking ahead, the economic planning secretary emphasized the need to diversify Philippine exports as well the exploration of trading opportunities with the country’s neighbors and other emerging markets.
“While these options require more time to be realized, propping up domestic demand should be supported to counter external imbalances.
“The government should fast track projects intended to make the business climate more conducive for investments and employment generation, as well as policies designed to increase the purchasing power of consumers.”
