Philippines: Exports contraction worsens in June
August 10, 2016
The Philippines’ exports declined for the fifteenth consecutive month in June mainly due to weak demand from Japan and China. Exports dropped an annual 11.4%, which followed May’s much softer 3.8% decrease. June’s sharper contraction reflected significant deteriorations in both machinery and transport equipment (June: -31.6% year-on-year; May: +29.3% yoy) and woodcrafts and furniture (June: -19.2% yoy; May: +49.7% yoy). Moreover, exports of manufactured goods tallied a stronger contraction (June: -9.5% yoy; May: -0.5% yoy). Exports of electronic products—classified as a sub-category of manufactured goods—dropped 5.1% on an annual basis, which was a worse result than the revised 2.9% contraction seen in the previous month (previously reported: -4.0% yoy).
According to the Philippine Statistics Authority, electronic products account for the largest share of total export revenues. The only positive note, exports of agro-based products recorded a 17.7% contraction, which was softer than May’s 27.6% drop.
In May (the latest month for which data are available), imports accelerated notably from April’s already-robust growth, recording an impressive 39.3% annual expansion (April: +29.8% yoy). The trade balance deteriorated to a USD 2.0 billion deficit in May (May 2015: USD 65 million surplus).