Following two months of accelerated growth, the country’s export sales settled at 1.0% growth for the month of June.
Philippine exports grew by $67.9M to $6.6B in June 2022, bringing cumulative exports to $38.5 B from January to June.
While export values barely inched higher in June, more Philippine export commodity groups register sustained recovery with 33 out of 48 commodity groups marking consistent increases in export sales compared to three time periods: 2021, 2020, and the pre-pandemic average from 2017 to 2019.
This was higher than the 24 commodity groups that registered sustained growth from January to May 2022.
Likewise, export gains in various sectors were dragged by the dip in the country’s top export products: electronics (-5.2%) and copper cathodes, (-50.1%), which together registered a $347.7-M drop in export receipts compared to June 2021.
Banana exports also dropped by 20.3% or $23.1M to $90.7M in June.
Further, within the electronics sector, double-digit declines were recorded in exports of electronic data processing, office equipment, and consumer electronics. This slowed down the growth of the sector despite the 80.5% and 27.4% growth in the country’s exports of telecommunication and control and instrumentation.
According to S&P Global’s report, new orders increased in June but the costs and charges rose again.
“Domestic demand remained strong as the lifting of pandemic restrictions allowed customer activity to pick up.”
Likewise, according to S&P Global Market Intelligence Economist Maryam Baluch, “Domestic demand remained strong as the lifting of pandemic restrictions allowed customer activity to pick up. In contrast, foreign client demand contracted for the fourth month running, and at a sharper pace.”
Meanwhile, for the first half of the year, export sales are still 7.1% higher compared to the same period last year, and 12.2% higher compared to the pre-pandemic average from 2017 to 2019.
Department of Trade and Industry (DTI) Secretary Alfredo Pascual said that “Given the uncertainties in the global trading environment, DTI will continue to promote and support enterprises to take advantage of the Philippines’ sizable market, which can help eventual forays into the export market”.
“We will prioritize investments in export industries that can participate in the global value chains of Industrial, Manufacturing, and Transport, Technology, Media and Telecommunication, and Health and Life Sciences.”
“We will prioritize investments in export industries that can participate in the global value chains of Industrial, Manufacturing, and Transport (IMT), Technology, Media and Telecommunication (TMT), and Health and Life Sciences (HLS). These are export clusters that will offer strategic advantages to the Philippines amidst the fast-paced technological advancements and shifts in global demand,” Pascual added.
In terms of commodity group, electronics continue to be the country’s top export in June 2022, with value reaching $3.5 billion, which accounts for 53.0% of the total exports.
This was followed by other mineral products with an export value of $486.9M (7.3% share), and other manufactured goods which amounted to $349.0M (5.3% share), according to the data released by the Philippine Statistics Authority (PSA).
In June 2022, the top ten Philippine export markets accounted for nearly 84.4% of total exports. Increased sales were registered in majority of Philippine export markets: Japan (3.6%), Singapore (50.3%), South Korea (40.6%), Taiwan (25.3%), and the Netherlands (6.1%).
Despite the 3.9% drop in exports this month, the United States remains the country’s top export market, gaining $1.05 billion in Philippine exports. For inquiries regarding exports, you can email the DTI-Export Marketing Bureau at exports@dti.gov.ph or you may visit tradelinephilippines.dti.gov.ph.
