Merchandise exports reversed to a slump in March, the National Statistics Office (NSO) reported yesterday, declining by 1.2% following gains in the previous two months.
Outbound shipments totaled $4.30 billion for the month, down from $4.36 billion a year earlier. Month on month, export receipts declined by 2.9% from $4.43 billion in February.
Electronics, the country’s top export, eked out a 1.1% hike in March. Its share also went down to 52.6% of the total. On a monthly basis, electronics slid by 3.1% to $2.26 billion from $2.33 billion in February.
Benjamin E. Diokno, economist at the University of the Philippines, is not so optimistic of export performance for the rest of the year, citing first-quarter data. For January to March, merchandise exports went up by 4.6% to $12.86 billion, from $12.29 billion in the same quarter in 2011.
“The large fluctuation in exports growth during the first quarter could make monthly forecast of exports growth more difficult. But one thing is certain: exports growth will remain weak, perhaps closer to the official forecast of 5%.”
“Two reasons: stronger peso and still volatile, uncertain, slow-growing world economy,” Mr. Diokno added.
De La Salle University economist Lucky Raymundo M. Malveda also cited the exchange rate, which strengthened to P42.86:$1.00 in March from P43.52:$1:00 a year earlier.
Semiconductor and Electronics Industries in the Philippines (SEIPI) President Ernesto B. Santiago said growth in electronic exports was moderate as anticipated. SEIPI expects the performance of electronics to be better in the second quarter, and to pick up pace in the second semester.
“Year on year for Q1 2012, growth is up by 5.5%. We project business to go up in Q2 and snap back in Q3 and Q4. We are looking at a 10-15% increase for this year versus 2011,” Mr. Santiago said.
In March, semiconductor exports, which made up the bulk of electronic exports, fell by 3.0% to $1.67 billion from $1.72 billion in the same month in 2011.
Articles of apparel and clothing accessories, the second highest export earner with a share of 3.5%, rose by 2.3% to $152.28 million. Woodcraft and furniture went up by 6.3% to $151.30 million.
Classified by commodity group, exports of manufactured goods accounted for 86% of the total. Receipts hit $3.68 billion, an annual increase of 3.8%. Agro-based products declined by 13.3% to $294.77 million while mineral products plunged by 48.7% to $133.10 million.
The United States emerged as the Philippines’ top export market in March with revenues reaching $668.25 million, followed by Japan with $664.78 million. East Asia was the biggest bloc for Filipino exporters, accounting for a 46.8% share of total exports at $2.012 billion in March.
Mr. Diokno said the changing profile of Philippine exports should highlight the need for an export diversification policy.
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By: Trishia P. Octaviano
Source: BusinessWorld, May 11, 2012
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