Exports down 24.7% in September

CEBU, Philippines - Philippine exports continued to fall in September this year due to decreases in the country's top export products, the Philippine Statistics Authority reported yesterday.

Official data released by PSA showed export sales during the month totaled $4.405 billion, down 24.7% from $5.846 billion in same month last year.

 That latest figure caused a contraction of 6.9% in exports during the nine-month period of this year to $43.746 billion from $46.976 billion last year.

 "The negative growth was mainly brought about by the decreases in eight major commodities out of the top ten commodities for the month. These include chemicals (-85.5%); other mineral products (-72.8%); other manufactures (-66.1%); metal components (-55.8%); articles of apparel and clothing accessories (-45.5%); coconut oil (-38.4%); ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (-2.7%); and electronic products (-2.1%)," PSA said in a statement.

 Electronic products remained as the country's top export with total receipts of $2.393 billion, accounting for 54.3% of total exports revenue in September. Semiconductors accounted 40.2% of all electronic products.

 While machinery and transport equipment was the second top export earner in September, with revenue totaling to $354.72 million. Woodcrafts and furniture ranked third, with sales amounting to $247.19 million during the month.

Japan remained the country's top export market. It was followed the US, Hong Kong, China, Singapore, Germany and Korea, among others.

 Economic Planning Secretary Arsenio Balisacan said yesterday: “This mirrors a still sluggish external demand due to weak global economic activity and depressed commodity prices, which continue to strain exports growth. Nonetheless, signs of a possible rebound of the country’s merchandise exports in the fourth quarter are likely, owing to better prospects in Japan, US and the Eurozone.”

 Manufactured goods, which comprised about 87% of the country’s total merchandise exports, posted a 23.6% decline in September 2015 to $3.8 billion from $5.0 billion in the same period last year.

 “This reflects the still weak global manufacturing sector, which can be traced to the sluggish final demand and ongoing inventory adjustments,” Balisacan said.

 Balisacan pointed out the government must strengthen its efforts to diversify export markets to dispel the impact of weak demand.

 "Tapping the opportunities from the export of services such as outsourcing (IT-BPO) can in part compensate for the decline in goods exports,” he said.

 The official added the potential of free trade agreements should be maximized and bottlenecks that affect the export sector's competitiveness should be addressed.  (FREEMAN)