Exports fell 4.1 percent year-on-year in April, marking the 13th straight month of contraction, as the fragile global economy led to lower demand for the country’s garments, chemicals and farm output, data from the Philippine Statistics Authority show.
PSA said merchandise exports went down to $4.25 billion in April from $4.34 billion a year ago. It was also lower than $4.6 billion registered in March this year.
“The country’s export performance remains subdued by external conditions but this period is also an improvement from last month’s year-on-year drop of 15.1 percent. The recovery in the sales of manufactured products, which grew by 2.1 percent in April 2016, is worth noting,” said Economic Planning Secretary Emmanuel Esguerra.
Total exports in the first four months declined 7.3 percent to $17.4 billion from $18.8 billion in the same period last year.
Electronic exports increased 1.9 percent in April to $2.3 billion and accounted for 53.1 percent of the total export value during the month.
Agro-based, mineral, forest and petroleum exports recorded revenue decline, as the weak global economy continued to drag demand from some of the country’s major trading partners such as the United States and China. This tempered solid gains in shipments to Singapore and Japan.
Outbound shipments of petroleum products plummeted 85.4 percent to $395,000 from $2.7 million in April last year.
Agro-based products and mineral products declined 11.1 percent to $256.57 million and 85.5 percent to $37.75 million, respectively. Significant losses to crops due to El Niño dry spell also contributed to the weaker sales of agro-based products.
“The slow pace of global economic recovery has negatively affected trade in most countries. Given this situation, the country’s export sector will continue to remain sluggish in the coming months as manufactured exports, such as electronics, are not expected to significantly contribute to exports growth,” Esguerra said.
Esguerra said to overcome the export downtrend, there should be a government strategy to improve export products and diversify towards non-traditional export markets with high demand.
“The government should enhance its support for emerging export products to maximize any opportunity to sell Philippine-made merchandise. The quality should also be continuously upgraded to deepen access to existing markets and diversify into new ones. It is critical to promote quality consciousness among local producers and establish a strong national quality infrastructure to ensure quality and safety of products, protect consumers and the environment, boost the competitiveness of industries and allow the Philippines to access international markets,” he said.
