Phl export growth hit negative mark in first 10 months

CEBU, Philippines - Philippine  export growth hit  the  negative mark for the first 10 months of this year, down by .83 percent, compared to the same period of  2012.

Latest record released by the Bureau of  Export and Trade Promotion (BETP) of the Department of Trade and Industry (DTI) revealed that the shipbuilding sector pushed down further as it dipped 15 percent  from US$4.053 million in  2012, to US$3.093 million this year.

The country's biggest export contributor continues to show its weakness with a whooping 15percent drop of  its total  export    revenue. Electronics sector only generated US$ 11.98 million in revenue this year, versus US$14 million it registered in 2012.

Similarly, garments and textile export followed the challenging path in export business, with 11.9 percent decrease in performance.

On the other hand, wearable exports, like fashion accessories, bags, shoes and jewelry recorded an encouraging third quarter result, with an increase of 129.07 percent, contributing a total revenue of  US$ 102 million, from US$ 44.54 million recorded last year.

Although players are still lamenting of weak demand, furniture exports, including home decors and giftwares grew by 25 percent as of  October this year.

In an interview with exporter and former president of Gifts, Toys and Housewares Exporters Foundation Inc. (Cebu-GTH) and fashion accessories exporter Ramir Bonghanoy, he said that wearable products for exports are expected to sustain its high momentum in spite of the unpredictable  market movement, because these products do not cost much and consumers can easily afford to buy and change their accessories, home accents, bags, and jewelry based on the fast changing trends.

Mineral exports likewise, continue to show its strength with  growth spiked to 62 percent, same goes to agribusiness products.

Marine and agricultural produced in the country also registered 43 percent growth, followed closely by processed food and beverages (39 percent); fresh  food export (37 percent) and 10 percent increase in coconut products.

EDC earlier expressed its confidence that the sector will continue to hold on and its slowly on its way up. But dynamics of promotion and operational system, as well and government support should be altered and improved to make way for exports to gain its strong momentum again.

EDC representative to the Visayas Allan Suarez said that surely export is not a sunset industry, only that it is undergoing transition with the changing market preference and highly competitive landscape.

September exports up 4.9%

Philippine exports eased in September from a multi-month high increases previously as shipments of non-electronics products softened, the National Statistics Office (NSO) reported Tuesday.

NSO data showed exports rose 4.9 percent to $5.045 billion in September year-on-year.

Data  in September reflected  a  slowdown from an 11-month high 20.2 percent in August 2013 and a 23.5 percent surge in September 2012.

"Moderation in exports was across the board, the only exception was electronics," Prakriti Sofat, Singapore-based economist at Barclays Plc, wrote in an e-mailed note.

Exports contraction for January to September 2013 narrowed to 0.1 percent.

Shipments of electronics, the Philippines top export product, increased by 12.8 percent, reversing a decline a month earlier, and was the fastest since  November 2012, according to NSO.

Japan accounted for 22.4 percent of total exports in September, which the United States accounted for 15 percent and China for 13 percent.

Still the numbers came as a surprise, Sofat said, noting the market has priced-in a contraction given the high rate posted in the same month last year. "We were looking for a contraction given the unfavorable high base," the economist said.

For the whole of 2013, exports would likely register somewhere in the low single digit levels.

Last Friday, Socioeconomic Planning Secretary Arsenio Balisacan said it  was unlikely for the Philippines  to  hit  the  10 percent exports growth target this year.

"It would normalize to a single-digit growth for the most of 2013," Emilio Neri Jr., lead economist at listed Bank of  the Philippine Islands, said in a telephone interview.

The exports sector may see better days next year amid improving economic prospects in the developed nations.

"Looking ahead, we  expect exports to gradually improve given the turn around in global demand," Sofat said. 

"The question is whether the Philippines will take advantage of this (improving external outlook). It depends on which segments will be picked up," Neri, however, noted. (With reports from GMA News)/JOB (FREEMAN)