Merchandise exports fell for the ninth straight month in December, dragging down the 2015 exports by 5.6 percent from a year ago.
The Philippine Statistics Authority said exports dropped 3 percent in December to $4.66 billion from $4.8 billion a year earlier, amid sluggish global demand for agriculture and mineral products.
This marked the ninth consecutive month of lower export revenues in 2015. They brought total exports in 2015 to $58.6 billion, down from $62.1 billion in 2014.
The National Economic and Development Authority said exports fell because of lower demand for manufactured items, agro-based and mineral products.
“Advanced and emerging economies continue to face difficulties. 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,” said Economic Planning Secretary Emmanuel Esguerra.
Data showed petroleum exports increased 11.9 percent, ending three consecutive months of decline.
Export of manufactured goods went down by 1.8 percent to $4.1 billion in December, after posting a slight improvement of 3.6-percent growth in November 2015.
Outward shipments of electronic products rose 6.4 percent to $2.529 billion in December from $2.377 billion in the same month in 2014.
“As soft global demand is expected to continue, the challenge is to be able to expand export market destinations and diversify product offerings,” Esguerra said.
“But on a positive note, the Philippines’ major trading partners such as the United States, Japan and the Euro area are expected to post a slight recovery this year,” Esguerra said.
Esguerra said the Philippines should take advantage of the Asean Economic Community which took effect this year.
“Expanding market opportunities in emerging export markets such as India and Mexico can boost the country’s merchandise exports, as they have been increasing their demand for consumer products,” said Esguerra.
He said the country should also remain committed to the implementation of the manufacturing resurgence program to complement such market and product diversification efforts.
“Implementing the MRP will rebuild the domestic production base and improve competitiveness through innovation. Given the high multiplier effects and potential for employment generation, the revival of the manufacturing sector is expected to spur domestic employment and investments in the country,” said Esguerra.