MANILA, Philippines -- (UPDATE) Merchandise exports rose at a slower pace of 2.3 percent to $4.224 billion in May after growing 4.9 percent in the previous month, the government said on Thursday.

Shipments of electronics products, the country's main export, were down 3.4 percent year-on-year in May after contracting 1.7 percent in April from a year ago. Revenue from electronics accounts for 58.6 percent of overall exports.

"There's a lot of uncertainty hanging over the outlook for global demand, and as we move into the second half of the year, things could worsen," said David Cohen, chief economist at Action Economics in Singapore.

Besides electronics, which are largely assembled from imported parts, other key Philippine exports include garments and accessories, vehicle parts, coconut oil, tropical fruit and wood furniture.

The marked weakness in imports and exports of electronics, a key dollar earner for the Philippines, reflected easing global demand, he said.

The bulk of the country's imports are raw materials for electronic products intended for exports.

The Philippine central bank has trimmed its projection for this year's balance-of-payments surplus to $2.5 billion from $3.4 billion previously given the global downturn.

Shipments of cathodes and copper were the country's second top export earner in May, growing 16.2 percent to $155.1 million. Garments posted the biggest decline of 17.7 percent to $150.2 million.

The US was the top market for Philippine exports with a 16 percent share and receipts rising 2.7 percent to $657.6 million.

Shipments to Japan rose 22.1 percent to $545.2 million, accounting for a 15.8 percent share.

($1 = P45.57)