PHL exports down 15% in March – PSA

Philippine exports amounted to $4.611 billion in March, down 15.1 percent from 5$.434 billion a year earlier, the Philippine Statistics Authority (PSA) reported on Wednesday.

"The decrease was attributed to seven major commodities out of the top ten export commodities for the month," the statistics office said.

"Furthermore, total merchandise exports for the period January to March 2016 likewise  registered  an  8.4 percent decrease from $14.304 billion in 2015 to $13.109 billion in the same period of 2016," the PSA added.

Electronic products, the country's top export, increased by a mere 1 percent at $2.356 billion from $2.332 billion in March year-on-year. It accounted for 51.1 percent of the total exports revenue in March 2016.

Non-traditional markets

In a separate statement, the National Economic and Development Authority (NEDA) noted the Philippines must look at non-traditional export destinations and products to be able to widen its market base, given the slump noted in March.

"It's a necessary step in the midst of a challenging global economy. The country's traditional trade partners continue to post subdued growth, global trade is not expected to pick up soon, and China's slowdown is impinging upon overall growth in emerging economies," Socioeconomic Planning Secretary Emmanuel F. Esguerra said.

To achieve this, Esguerra said government regulations must be eased and market intelligence strengthened in partnership with the private sector.

Japan – including Okinawa – was the top export destination for Philippine goods amounting to $991.43 million, down 13.6 percent from $1.147 billion in the same comparable period. Shipments to Japan comprised 21.5 percent of total exports.

Maximize opportunities

Majority of Philippine merchandise exports went to East Asian destinations, valued at $2.376 billion or 51.5 percent of total exports – but down 10.2 percent from $2.644 billion.

ASEAN members countries bought 14. 9 percent of Philippine products at $689.11 million – down 0.6 percent from $693.32 million.

"We also need to maximize the opportunities in trade agreements and economic groupings, particularly within the ASEAN region," he added.

Esguerra noted the export industry needs to grow by at least 8.3 percent in the next three quarters to achieve the full-year, low-end projection of the Export Development Council of 5.4 percent.

"This is a reflection of a general slowdown in the global manufacturing sector. On the upside, wood manufactures, and iron and steel posted positive growth rates in March 2016. Electronic exports also reached its tenth consecutive month of positive growth during the period," he said. – With Jon Viktor Cabuenas/VDS, GMA News