DTI: Philippine exports jump 31% to $6.68B in March

The country’s merchandise exports saw a recovery in March on the back of global economic recovery arising from the ongoing COVID-19 vaccinations, the Department of Trade and Industry (DTI) said Friday.

Citing data from the Philippine Statistics Authority (PSA), the DTI said the country’s export sales jumped by 31% to $6.68 billion in March from $5.079 billion in the same period last year.

The amount is even higher compared to $6.03 billion recorded in March 2019.

This brings the year-to-date export earnings to $17.56 billion, up 7.6% year-on-year.

Electronics, which make up 61% of all exports, grew by 25% compared to March last year.

Trade Secretary Ramon Lopez attributed the growth to chip demand due to upgrades to IT systems, new smartphones, auto demand, and automation. 

“Factories across the US, Europe, and Asia are ramping up production. And since the Philippines is part of global value chains, our exports recover as more countries reopen,” Lopez said. 

“I hope this trend continues so our exporters can hire more people,” he said.

All the top 10 major commodity groups in terms of value exports recorded annual increases led by other mineral products (195.8%), followed by chemicals (159.8%), and other manufactured goods (115.7%).

The ramping up of production in factories across Europe and Asia in March led to a solid recovery in demand, according to the DTI.

In particular, strong chip demand due to upgrades in IT systems, a new cycle of smartphones, strong auto demand, and moves toward automation increased the exports of electronic parts globally, it said.

Coconut oil was the 10th most exported commodity group and the top agricultural export.

Sales of the product increased by 7.8% to $89.05 million.

A 2020 study by the Department of Science and Technology (DOST) found that virgin coconut oil (VCO) can help combat COVID-19 symptoms and prevent mild cases from becoming severe. 

Following coconut oil is processed food and beverages which amounted to $81.99 million, up 99.1% year-on-year.

China was the top destination for goods, receiving $1.07 billion or 16% of all Philippine exports.

Apart from China, the top five trading partners of the Philippines were the US with 14.9% share, Japan with 14.7%, Hong Kong with 12.5%, and Singapore with 5.2%.

If taken by economic blocs, 83% of all exports went to member countries of the Asia-Pacific Economic Cooperation (APEC), according to the DTI.

The APEC has 21-member countries, including the Philippines.

Eleven of those countries are also signatories of the world’s biggest free trade deal, the Regional Comprehensive Economic Partnership (RCEP).

“The RCEP reduces tariff and red tape to ease the flow of goods in the region,” Lopez said. 

“That’s why I encourage all exporters to maximize its benefits. DTI, through the Export Marketing Bureau and other trade promotion agencies, is ready to help you in the process,” the Trade chief added. -MDM, GMA News