PHL exports fall for first time in five months

Merchandise exports in January fell for the first time in five months, reversing double-digit growth the month previous on sharp decline in electronics shipments, the National Statistics Office (NSO) reported Tuesday.

 

The decline is the weakest export performance since the 9 percent drop in August last year. 

 

The government and an analyst, however, see a recovery soon. 

 

Export revenues registered at $4.01 billion in January, down 2.7 percent from $4.12 billion a year earlier, even as the latest performance was better than December's $3.97 billion, the NSO said in a statement.

 

Socioeconomic Planning Secretary Arsenio Balisacan said in a separate statement that the semiconductor sector will pick-up in the coming months. 

 

“The annual gain of worldwide chip sales recorded suggests an improvement for the industry for the year,” he said. 

 

“The decline in semiconductors exports may be partly attributed to lower value of outward shipments to Singapore, the People’s Republic of China (PRC), the US and Japan, which accounted for more than half (51.6 percent) of the country’s semiconductor revenues,” Balisacan added. 

 

Electronic products—which made up 36.6 percent of total export revenues in January—fell by 31.9 percent to $1.47 billion from $2.15 billion, and by 2.6 percent from $1.51 billion in December 2012.

 

The electronic sector's top export, Semiconductors, declined by 23.2 percent to $1.197 billion from $1.560 billion. 

 

Barcalys Capital regional economist for Southeast Asia Prakriti Sofat shared Balisacan's view. 

 

“Looking ahead we continue to expect Philippines exports to expand on improving external demand, as indicated by US ISM new orders and the global semiconductor equipment book-to-bill ratio,” Sofat said in an e-mailed response to media queries. 

 

Other manufactured exports also declined year-on-year, including garments (-41.7 percent), machinery and transport equipment (-3.4 percent), miscellaneous manufactures (-13.9 percent), textile yarns/fabrics (-9.2 percent), iron and steel (-6.1 percent), and baby carriage and toys (-6.1 percent), NSO data showed. 

 

However, agro-based exports were up 33.3 percent to $388.9 million from $291.7 million. A year earlier agro-based exports contracted by 12.4 percent.

 

Japan was the top market accounting for 19.2 percent of total Philippine shipments, followed by Republic of Korea (14.1 percent), US (13.0 percent), People's Republic of China (10.5 percent), and Hong Kong (8.2 percent). — SOA/VS, GMA News