PHL exports drop for 3rd straight month in February

(Updated 6:02 p.m.) Lower shipments of furniture, mineral products and metal components dragged Philippine merchandise exports down for the third straight month in February, the Philippine Statistics Authority (PSA) reported Wednesday.

 

Export payments decreased by 3.1 percent to $4.513 billion from $4.657 billion a year earlier, PSA data show.

 

The February figures also compare with the 0.5 percent contraction in January.

 

In the first two months of the year, aggregate merchandise exports registered a 1.8 percent decrease $8.869 billion from $9.036 billion in the same period last year. 

 

In a statement, National Economic and Development Authority (NEDA) the decline in exports was not exclusive to the Philippines.

 

“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," NEDA director-general Arsenio Balisacan said.

 

"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,” he added.

 

The PSA said the negative performance for the month was brought about by a decrease in six major commodities out of the top ten for the month.

 

"These were: woodcrafts and furniture; other mineral products; metal components; electronic equipment and parts; other manufactures; and machinery and transport equipment," it said.

 

“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,” said Balisacan, who is also the Socioeconomic Planning secretary.

 

Other manufactures, the second top export earner, decreased by 12.8 percent to $329.88 million from $378.09 million. Other manufactures usually included metals and non-metallic minerals and paper.

 

Woodcrafts and furniture, the fifth top export product accounting for 4.6 percent of the total, incurred 40.7 percent drop in earnings to $202.31 million from $341.09 million.

 

Meanwhile, the value of shipments of other mineral products declined by 36.6 percent; metal components by 35.4 percent; electronic equipment and parts by 24.8 percent and machinery and transport equipment by 3.6 percent.

 

Similarly, lower export volume and the plummeting global prices of crude oil continue to drag revenues from petroleum products, which contracted by 51.5 percent during the period, the NEDA said.

 

“While this strain and moderation in Philippine exports is expected and was noted last month, now is the high time to be vigilant,” Balisacan said.

 

"Forward estimates of manufacturing activity for both Japan and China suggest another slowdown in March. Global commodity prices also continue to decline, potentially reducing revenues from agro-based and mineral exports in the succeeding period,” he added.

 

The Cabinet official stressed the need to diligently monitor potential external shocks that can negatively affect the country’s trade performance. 

 

The government will also benefit from intensifying its efforts in expanding its market base for agro-based products, he added.

 

“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,” Balisacan said.

 

According to the PSA, Japan was still the top buyer of Philippine exports at $942.29 million or 20.9 percent of total shipments for February.

 

The United States was second, followed by China, Hong Kong and Singapore. — RSJ, GMA News