Philippines: Contraction in exports worsens in July
September 9, 2016
The Philippines’ exports declined for the sixteenth consecutive month in July mainly due to weak demand from Japan and Hong Kong. Exports dropped an annual 13.0%, which followed June’s softer 11.4% decrease. July’s sharper contraction mainly reflected that exports of manufactured goods registered a stronger contraction (July: -13.0% year-on-year; June: -9.5% yoy).
Exports of electronic products—classified as a sub-category of manufactured goods—plunged 14.8% on an annual basis, which was a worse result than the 5.1% contraction seen in the previous month. According to the Philippine Statistics Authority, electronic products account for the largest share of total export revenues. Other sub-categories that recorded notable drops were machinery and transport equipment and woodcrafts and furniture. The only positive news was that exports of agro-based products recorded a 0.6% contraction, which was much softer than June’s 17.7% drop.
In June (the latest month for which data are available), imports decelerated notably from May’s strong growth, recording a 15.4% annual expansion (May: +39.3% yoy). The trade balance deteriorated to a USD 2.1 billion deficit in June (June 2015: USD 0.6 billion deficit).