Coconut oil, mineral products lift PHL exports 6.9% in May

(Updated 6:11 p.m.) Philippine merchandise exports surged in May as receipts from coconut oil, mineral and non-metal products offset the decline in electronics, the Philippine Statistics Authority (PSA) reported Thursday.

 

Export receipts were up by 6.9 percent to $5.4835 billion from $5.1313 billion a year earlier, PSA data showed.

 

The growth is also faster from the revised 1.3 percent in April 2014.

 

"The positive growth was mainly brought about by the increase of seven major commodities out of the top ten commodities for the month," the PSA said.

 

These included other mineral products, coconut oil, other manufactures, metal components, machinery and transport equipment, ignition wiring set and other wiring sets used in vehicles, aircrafts and ships, and articles of apparel and clothing accessories, according to PSA.

 

 

In a separate e-mailed statement, National Economic and Development Authority (NEDA) Deputy Director-General Emmanuel Esguerra said the positive turnout in the manufactured sector of the export industry was a reversal from the 3.2 percent in May 2013 and was broadly in line with a stronger global manufacturing activity.

 

Bank of the Philippine Islands economist Nicholas Mapa said the country is now diversifying its export products.

 

"It's good that we continue to diversify and we're not too reliant on electronic exports," he told GMA News Online by phone.

 

"But we'd like to see the Philippines move to higher value products like finished products under electronics or processed agricultural products," Mapa added.

 

Receipts from electronics and semiconductors, which accounted for 37.3 percent of total exports, fell by 1.6 percent to $2.048 billion in May from $2.082 billion a year earlier. 

 

Other manufactures, the second top export earner, rose 40.6 percent to $633.14 million in May from $450.35 million a year earlier. Other manufactures usually included metals and non-metallic minerals and paper.

 

Total agro-based exports also expanded to $450.9 million from $380.8 million a year earlier, driven by coconut products, fruits and vegetables, and other agro-based products.

 

Export revenues from coconut products posted a significant growth of 31.1 percent in May 2014, mainly due to higher international prices but the volume of shipments fell due to the natural slowdown in copra production and the long-term negative impact of Typhoon Yolanda and the effect of the coconut scale insect.

 

“On fruits and vegetables, higher volumes of bananas were shipped to major markets such as Japan, China, South Korea, Kuwait, and Iran,” Esguerra said, noting the rehabilitation of banana plantations damaged during Typhoon Pablo in December 2012 improved the supply situation.

 

Total merchandise exports in the five months to May increased by 5.8 percent to $24.365 billion from $23.025 billion a year earlier.

 

Japan is still the top buyer of Philippine products, which accounted for 20.4 percent of total shipments, followed by China at 17.5 percent and US at 13.7 percent.

 

The country's exports will see more growth as the economy of the top three buyers are well on their way to recovery, Mapa said.

 

"All three are expected to grow at a faster pace and we'll see more demand for Philippine products from them," he said. – VS, GMA News