Philippine exports slightly decline in November 2015

MANILA, Jan. 14 -- Philippine exports of electronic products showed signs of recovery in November 2015 but overall merchandise exports posted a slight decline, according to the National Economic and Development Authority (NEDA).

As the weak global economy continues to affect Philippine exports, the Philippine Statistics Authority reported on Tuesday that exports fell slightly to USD 5.1 billion in November 2015 from USD 5.2 billion in the same month of 2014. However, with the continued recovery of export of electronic products, the decline was much slower, compared with the 10.8-percent decline in the previous month, according to the NEDA.

“Meeting our export targets has been very challenging as the global economy remains weak, which translates into weak demand for the country’s export products,” said Economic Planning Secretary Arsenio M. Balisacan. “Given the performance of the export sector in the first 11 months of 2015, the full-year target is unlikely to have been met,” he added.

From January to November 2015, total exports value fell by 5.8 percent or USD 54.0 billion from USD 57.3 billion in the previous year. Moreover, merchandise exports for the said period account for only 83.1 percent of the government’s merchandise export target of USD 65.0 billion for 2015.

“In order to achieve the full-year target for 2015, merchandise exports in December 2015 would have to register a total of USD 11 billion, equivalent to a growth of 129 percent,” Balisacan added.

The Philippines recorded the least export decline among the monitored economies in East and Southeast Asia for November 2015. Except for Viet Nam, most economies in the region posted lower merchandise exports.

For the said period, all key commodities registered double-digit declines except for manufactured goods, which posted a 3.6-percent year-on-year increase as shipments of electronic products continued to recover.

“The country’s positive performance in the sales of semiconductors bucked the international trend as worldwide sales were down in November 2015. Thus, the modest growth in exports of goods from the electronics and semiconductors segment is expected to continue propping up total merchandise exports,” Balisacan said.

Total export receipts from agro-based products were down by 23.1 percent to USD 240.6 million in November 2015 on account of lower revenues recorded mostly from fruits and vegetables, as well as fish, unmanufactured tobacco, and natural rubber, among others.

The total value of outward shipments of mineral products also decreased by 25.3 percent or USD 151.8 million in November 2015 due to lower earnings from copper metal and iron ore agglomerates.

Furthermore, exports receipt from petroleum and forest products plunged by 69.3 percent and 79.5 percent respectively in the said period.

The Cabinet secretary said the country needs to diversify the products and export markets to mitigate the drag in exports performance.

“Moving forward, the government needs to continue to strengthen efforts to improve competitiveness of our local industries as the other ASEAN member states continue to improve theirs,” Balisacan said. “A well-organized and coordinated mechanism that can provide negotiating experience, policy research and analytical preparation support, as well as physical and financial resources, will need to be institutionalized.” (NEDA)