Metro Manila (CNN Philippines) — Philippine merchandise exports contracted by 4.1% to $4.4 billion in April 2015, from $4.6 billion in the same month last year, according to figures from the Philippine Statistics Authority (PSA). The figure marks a turn from the 2.1% rebound in March 2015.
The National Economic and Development Authority (NEDA) attributes the slump to lower revenues from petroleum, mineral, and agro-based products.
“The decline is partly reflective of fragile global economic conditions, as most trade-oriented economies in East and Southeast Asia also registered negative export performance in April 2015, with only Vietnam in positive territory. Weaker demand conditions in some of our major trading partners, particularly China, were seen,” Economic Planning Secretary Arsenio Balisacan said in a statement.
Balisacan is the director-general of the National Economic Development Authority.
Electronic products remained as the country’s top export, with aggregate receipts of $2.22 billion accounting for 50.6% of revenue. Semiconductors formed the largest part of this index with a 38.1% share.
Export revenue from agro-based products plunged by 33.1% to $231 million in April 2015, compare to $345million in the same period last year.
“The production of agro-based commodities will continue to feel the impact of prolonged drought in tandem with the occurrence of stronger and erratic typhoons. This will ultimately affect production,” said Balisacan.
The NEDA chief believes that the government should fast-track and strengthen initiatives that address the impact of extreme weather conditions on agriculture. Balisacan’s suggestions include infrastructure support and the use of hybrid seeds and weather sensing facilities.
“These initiatives, if undertaken, will help stabilize supply of exported agro-based commodities and provide steady income for workers in agriculture.”
Balisacan believes that the country’s export sector remains vulnerable to declining demand from its major trading partners.
In a statement, NEDA said that the “softening of economic activity in China as well as the still fragile economic growth of Japan remains a downside risk for the Philippine export sector.
Japan was the top destination of Philippine products, accounting for 17.9% of total exports, or $784.90 million in revenue. The U.S. ranked second with a 16% share, followed by China (excluding Hong Kong) at 10.7%.
