Philippine merchandise exports declined for the 14th straight month in May 2016 to US$4.71 billion, a 3.8% decrease from the $4.90 billion recorded in May 2015.
The Philippine Statistics Authority (PSA), in its latest data, attributed the decrease mainly to the decline in five major commodities out of the top ten export commodities for the month.
These are other mineral products (-43.8%), articles of apparel and clothing accessories (-41.7%), chemicals (-37.2%), metal components (-14.0%), and electronic products (-4.0%).
“The growth of exports is expected to remain muted for the rest of 2016 with the slow recovery of the global economy. Given the soft demand, export-oriented firms may need to refocus their strategies to consider non-traditional markets, which have shown healthier appetites in recent months,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement.
He cited for instance the growth of exports to European countries. Exports to France and Switzerland grew 37.8% and 72%, respectively, for the first five months. On the other hand, exports to traditional markets such as Germany and the Netherlands declined 18.8% and 10.6%, respectively.
“It would also be important to increase the flexibility of export firms to cater to the domestic market, given robust domestic demand. We also need to keep government spending on track to ensure that domestic demand continues to provide a cushion to mitigate the impact of the country’s weak exports growth,” said Pernia, who is also National Economic and Development Authority Director-General.
Total merchandise exports for the period January-May 2016 fell 6.6% to $22.07 billion from $23.64 billion in the same period in 2015.
Outward shipments of manufactured goods, the largest export commodity group, slightly declined 0.5% to $4.18 billion from $4.20 billion recorded in May 2015.
Electronic products remained as the country’s top export commodity with total receipts of $2.26 billion, but it was down 4% from $2.36 billion in May 2015.
Exports of total agro-based products, which accounted for 5% of the total, likewise declined, down 29.4% to $233.40 million from $330.61 million in May 2015.
Exports of mineral products, which had a 4.6% share of the total, also moved down 13.6% to $216.98 million from $251.12 million previously.
Special transactions also dropped 23.6% to $64.82 million from $84.88 million, and petroleum products registered a decrease of 33.4% to $18.57 million from $27.88 million in May 2015.
Sales of forest products nosedived 82.6% to $1.23 million from $7.07 million.
Japan remained the country’s top export destination with revenue amounting to $1.04 billion, followed by the U.S. with $703.54 million, and Hong Kong with $513.67 million.
