PSA: PHL’s Merchandise Export Growth Weakens to 9.3%

Merchandise export growth of the Philippines has weakened to 9.3 percent in January this year, describing it as the lowest increment since September, preliminary data by the Philippine Statistics Authority (PSA) said on Tuesday.

According to the preliminary data, the value of merchandise exports only increased to $4.382 billion in January 2014 from $4.011 billion in January 2013.

Reports said that in the last quarter of 2013, merchandise exports posted double-digit increase of 14 percent in October, 18.9 percent in November, and 15.8 percent in December.

Slowest Since September 2013

The export growth in January 2014 was the slowest since September 2013, when export growth was at 5.1 percent.

Reports added that based on a monthly basis, receipts from merchandise exports declined by 4.7 percent from $4.599 billion posted in December 2013.

The PSA data added that in terms of total volume of outward shipments, as expressed in gross kilos, total exported goods decreased as compared to the same month a year ago.

Contraction

It added that compared to January 2013, when exports posted a contraction of 2.7 percent, the January 2014 export growth was still a significant rebound adding that export growth in the first five months of 2013 contracted.

National Economic and Development Authority (NEDA) Assistant Director General Rosemarie Edillon said in Business Mirror report that there are signs of economic recovery in the rest of the world. She said its a seasonal thing and hopes to know more in the coming months.

Seven Major Commodities

The PSA said the export growth in January was mainly due to the increase registered by seven major commodities out of the top 10 commodities for the month. These are other manufactures, electronic equipment and parts, metal components, articles of apparel and clothing accessories, electronic products, machinery and transport equipment, and woodcrafts and furniture.

Electronics

Electronic Products, the country’s top export, posted a 22.1-percent growth in January 2014 to $1.793 billion from $1.469 billion registered in January 2013. Report said PSA noted this accounted for 40.9 percent of the total exports revenue in January 2014.

On a month-on-month basis, however, Electronic Products contracted by 6 percent from $1.907 billion posted in December 2013.

Components/Devices (Semiconductors), which comprised 26.4 percent of the total exports, had the largest part among the major groups of electronic products.

Export earnings, according to the report, attributed to Semiconductors amounted to $1.155 billion, but declined 3.6 percent from $1.197 billion recorded in January 2013.

The PSA said the volume of outward shipments of electronic products increased compared to the same period last year.

Top Three Export Markets

The Philippines’ top three export markets in January 2014 were Japan including Okinawa, which accounted for 26.3-percent share to total exports for January 2014; United States of America including Alaska and Hawaii, 13.8 percent; and China, for 9.9 percent.

The data revealed that exports to Japan amounted to $1.150 billion, which was 49.6-percent higher from the $769.04-million recorded value in the same month last year.

It added that exports to the US amounted to $605.43 million in January 2014. This was an increase of 15.6 percent from $523.54 million in the same month last year. Shipments to China amounted to $433.13 million, a 2.6-percent increase from $422.06 million a year ago.

Report said East Asia remained as the country’s top market destination for exported goods in terms of economic bloc as it accounted for 52.9-percent share to total exports, or total earnings of $2.319 billion in January 2014.

It increased by 4.5 percent from its January 2013 figure of $2.220 billion.

Exports to South East Asia and Europe

Reports said goods exported to Southeast Asian countries comprised 17.1 percent of the total exports in January 2014 and valued at $747.90 million. This registered an increase of 28.4 percent from $582.55 million posted in same month a year ago.

Exports to European Union member-countries, with 10.6 percent share to total merchandise exports, amounted to $463.63 million, a 5.8-percent increase from $438.36 million recorded in January 2013, reports added.

The Development Budget Coordination Committee (DBCC) set the country’s export growth target at 6 percent in 2014. Target growth for imports was also set at 6 percent this year, report said.

Source: Business Mirror