Exports down in February
MANILA, Philippines – The country’s merchandise exports is down to 3.1 percent on account of lower sales in agro-based products, manufactures, and petroleum products in February 2015, the National Economic and Development Authority (NEDA) said on Wednesday.
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| Agro-based products and manufactures are among the major commodity items that drove lower exports outturns. STAR file |
“Majority of the major economies in East and Southeast Asia registered negative export performance in February 2015, with only PR (People’s Republic) China in the positive territory. This partly mirrors the still fragile global economy, which is particularly reflected in the country’s weak turnout of merchandise exports on the back of lower demand from the country’s major trade partners, Japan and China,” said Socioeconomic Planning Secretary Arsenio Balisacan.
Agro-based products and manufactures are among the major commodity items that drove lower exports outturns. This recorded declines in shipments to Japan and PR China.
During the period, lower earnings from fruits and vegetables, sugar products, and other agro-based products contributed to the 20.1 percent contraction of total export revenues from agro-based products. The total revenue is lower by 20.1 percent from US $409.4 million in the same month last year to $327. million this February.
Likewise, the earnings from exported manufactured goods also decelerated by 1.8 percent due to lower receipts of wood manufactures, machinery and transport equipment, and other manufactures. This posted a decline from $3.9 billion in February last year to $3.8 this year.
“The recorded contractions in these manufactured commodities slightly outweighed the year-on-year gains in the value of electronic products, most notably of semiconductors, garments, and chemicals,” noted Balicasan.
Lower export volume and the plummeting global prices of crude oil also continue to drag revenues from petroleum products, which diminished by 51.5 percent during the period.
On the other hand, mineral products recorded a 7.1 percent increase in outward sales caused by higher shipments of copper metal, gold, and iron ore agglomerates.
“While this strain and moderation in Philippine exports is expected and was noted last month, now is the high time to be vigilant,” Balicasan said.
The Cabinet secretary added that forward estimates of manufacturing activity for both Japan and China hints another slowdown in March. Global commodity prices also continue to decline, potentially reducing revenues from agro-based and mineral exports in the subsequent periods.
Balicasan stressed the need to diligently monitor potential external shocks to prevent country’s trade performance from suffering. By intensifying government’s efforts, it could help in the expansion of market base for agro-based products.
“Further improvements in infrastructure and logistics should also continue to support the export manufacturing sector. Likewise, concerns on the stability of power supply should be addressed,” explained Balisacan.
Meanwhile, Japan still emerged as the top destination of Philippine-made goods with 20.9 percent share in the total revenues from merchandise exports during the period, while USA remained second as it accounts 16.2 shares, and PR China on the third spot with 9.9 percent.
***Originally published on Philstar.com; April 8, 2015; 6:39 p.m. Link: Exports down in February
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