Philippine merchandise exports declined for the ninth straight month with a 3% drop in December 2015 despite the double-digit increase in petroleum sales, according to the National Economic and Development Authority (NEDA).
Total revenue from exports fell to US$4.7 billion in December 2015 from $4.8 billion in the same month in 2014, according to the Philippine Statistics Authority. NEDA said lower sales in manufactures and agro-based and mineral products accounted for the drop and tempered increased earnings from petroleum products.
Petroleum exports increased 11.9% after three consecutive months of decline due to the recent low oil prices. But the slowdown in the country’s major trading partners, such as China, dragged down revenues from merchandise exports.
Exports of manufactured goods declined 1.8% to $4.1 billion in December 2015, after posting a slight improvement of 3.6% in November 2015.
“Advanced and emerging economies continue to face difficulties. In particular, the slowdown in China due to on-going structural transformation, as well as the contractionary fiscal policies in oil-exporting countries as they adjust to declining oil revenues, (poses) risks to the Philippine economy this year,” Socioeconomic Planning Secretary Emmanuel Esguerra, also NEDA director general, said in a statement.
“As soft global demand is expected to continue, the challenge is to be able to expand export market destinations and diversify product offerings,” the Cabinet official said.
On a positive note, the Philippines’ major trading partners such as the United States, Japan, and the Euro area are expected to post a slight recovery this year, Esguerra added.
He noted the Philippines should start taking advantage of the recent launch Association of Southeast Asian Nations (ASEAN) Economic Community.
“Expanding market opportunities in emerging export markets such as India and Mexico can boost the country’s merchandise exports, as they have been increasing their demand for consumer products,” Esguerra said.
He added that the country should remain committed to the continued implementation of the Manufacturing Restructuring Program (MRP) to complement market and product diversification efforts.
“Implementing the MRP will rebuild the domestic production base and improve competitiveness through innovation. Given the high multiplier effects and potential for employment generation, the revival of the manufacturing sector is expected to spur domestic employment and investments in the country,” Esguerra noted.
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