PHL exports register slump in May

Merchandise exports sustained a decline in May, albeit at a slower pace, as electronics shipments continued to slack, the National Statistics Office reported Wednesday. 

 

In a statement, the NSO said export earnings amounted to $4.891 billion in May, a 0.8 percent contraction from $4.932 billion in the same month last year. 

 

The latest figure compares to a 19.7 percent leap in May last year, but an easing of the 11.1 percent drop in April 2013.

 

The latest trade performance placed the receipts tally to a  6 percent decline in the first five months—below government's 10-percent growth target. 

 

Bank of the Philippine Islands economist Emilio Neri Jr. said the latest figure indicates demand for the top shipments remains low and points to the possibility of the government missing its exports goal for the year. 

 

“It will probably be difficult to achieve,” Neri noted in a phone interview. “A low single digit growth is still possible...” if the government and private sector “moves aggressively” to boost other potential growth sectors, he said.

 

Electronics shipments—the country's top export—went down by 9.3 percent to $1.731 billion in May from $1.908 billion year-on-year. 

 

Still, other shipments registered triple-digit growth. Receipts from petroleum products increased by 521.3 percent and other mineral shipments by 189.5 percent. 

 

Neri said the government and private sector should look diversifying exports into agro-industrial and other manufactures or even “electronic products to up the value chain.”

 

The economist noted the country will have to rely on domestic demand to bolster the economy through lackluster trade. 

 

“Headline exports figures contributing significantly to output may emerge next year, but this year will be difficult,” he said. 

 

In May, Japan remained the top consumer of Philippine products, accounting for 20.1 percent of total shipments while the United States took in 12.4 percent and China bought 11.7 percent.  — VS, GMA News