Weak demand from major export markets pulled down Philippine exports by 11.4% in June 2016, marking the 15th consecutive month of decline, according to the National Economic and Development Authority (NEDA).
The Philippine Statistics Authority reported that total revenue from Philippine exports fell to US$4.8 billion in June 2016 from $5.4 billion in the previous year due to lower sales from all commodity groups.
“We must continue to improve our efforts in ensuring an enabling environment where industries can upgrade and improve their competitiveness,” Socioeconomic Planning Secretary Ernesto Pernia said in a statement.
He said that an example of a supportive approach is to help the agriculture sector transform from a traditional farming industry to a globally competitive agribusiness sector.
“This can be done by effectively linking the agriculture sector to the local and global industry supply chain,” said Pernia, who is also NEDA Director-General.
Exports of manufactured goods declined 9.5% to $4.1 billion in June 2016, a steeper decline than the 0.5% drop in May 2016.
On the other hand, the export of petroleum products fell 10.6%, the slowest pace of growth for the commodity since the start of the year. This partly reflected price dynamics as export volume increased by 90.6%.
Meanwhile, exports to the country’s traditional markets declined, except those to Hong Kong and Taiwan, which posted growth of 3.2% and 2.2%, respectively.
Almost all Asian countries, except Vietnam and India, have been experiencing weak, albeit improving, export performance, NEDA noted.
“With the slow global economic recovery, the country should identify non-traditional markets, such as in Europe and within the ASEAN region, to reduce the external shocks from times of weak demand from traditional markets,” the Cabinet official said.
“We should also ensure the programmed spending on infrastructure projects, particularly those related to transportation and logistics, to support the country’s growing industries,” Pernia said.
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