PH exports inch up 2.9% to $5.173 billion in October

MANILA, Philippines – The value of Philippine goods shipped abroad rose at its slowest pace in five months last October, reflecting softening demand overseas.

The Philippine Statistics Authority (PSA) reported on Monday that merchandise export receipts grew 2.9 percent to $5.173 billion in October from the $5.027 billion during the same month in 2013.

In Asia, the Philippines posted the fourth-fastest exports growth last October, after Vietnam’s 12.5 percent, China’s 11.6 percent, and Thailand’s 4 percent.

Philippine exports at the start of the fourth quarter, however, were less than September’s $5.849 billion.

October also marked the first time in five months that the increase in exports hit only a single-digit percentage, from the robust 21.3-percent jump last June, 12.4 percent in July, 10.5 percent in August, and 15.7 percent last September.

As of the end of October, exports totaled $51.769 billion, up 9.2 percent from the $47.413 billion recorded in the first 10 months of 2013.

In a statement, Socioeconomic Planning Secretary Arsenio M. Balisacan attributed the increase in October shipments to the higher sales abroad of electronic products, furniture and fixtures, iron and steel, machinery and transport equipment, miscellaneous manufactured articles, and textile yarns and fabrics.

In particular, electronics and agro-based products were the growth drivers in terms of volume last October, Balisacan said.

However, Balisacan warned that external shocks might slow the growth of Philippine exports in the next few months.

“[T]he October performance of the exports sector generally reflected the softening of the country’s main trading partners. Major economies such as Japan, China and the Euro area are facing a myriad of economic difficulties, which could dampen exports growth in the short run,” said Balisacan, the director-general of the National Economic and Development Authority (NEDA).

To recall, Japan has already entered a recession, China’s economy is slowing down from previous strong growth rates, while Europe’s recovery remains fragile.

Despite these roadblocks, Filipino exporters remain optimistic of better sales in the fourth quarter ahead of the Christmas holiday season.

According to NEDA: “[D]omestic firms engaged in exporting activities maintain a positive outlook for the last quarter of the year due to increased consumer spending during the holiday season, abundance of raw materials and transfer of production activities of some firms from China and Thailand to the Philippines.”

“Should these materialize, export performance for the remaining period of the year should at least remain positive despite economic headwinds in other economies,” Balisacan said.

During the month of October, the top three destinations of Philippine exports were Japan, the United States, and China.