PH exports drop 3% in Dec. amid sluggish global demand

Sluggish global demand continued to drag down the Philippine merchandise exports in December last year despite the double-digit increase in petroleum sales, the Philippine Statistics Authority (PSA) reported yesterday.

Data from the PSA showed that total revenue from Philippine exports fell by 3.0 percent to $ 4.7 billion in December, 2015 from $4.8 billion in the same month in the previous year.

According to the National Economic and Development Authority (NEDA), lower sales in manufactures, agri-based and mineral products accounted for the drop, which tempered increased earnings from petroleum products.

Petroleum exports increased by 11.9 percent after three consecutive months of decline due to the recent low oil price environment. But the slowdown in the country’s major trading partners, such as China, dragged down revenues from merchandise exports.

Export of manufactured goods declined by 1.8 percent to $4.1 billion in December last year, after posting a slight improvement of 3.6 percent growth in November, 2015.

In a statement, Socioeconomic Planning Secretary Emmanuel F. Esguerra said that advanced and emerging economies, including the Philippines, continue to face difficulties in the exports sector.

“In particular, the slowdown in China due to on-going structural transformation, as well as the contractionary fiscal policies in oil-exporting countries as they adjust to declining oil revenues, pose risks to the Philippine economy this year,” Esguerra said.

The official explained as soft global demand is expected to continue, the challenge is to be able to expand export market destinations and diversify product offerings.

“But on a positive note, the Philippines’ ma-