The threat of El Niño to the farm sector—coupled with low demand for locally produced goods from the country’s major markets—would make it difficult for exporters to prop up their earnings in the remaining months of 2015, the National Economic and Development Authority (Neda) said on Friday.
Data released by the Philippine Statistics Authority (PSA) showed that revenues from exports in August declined by 6.3 percent to $5.12 billion, from $5.47 billion recorded a year ago. The Neda said the slowdown in August marked the fifth consecutive month of negative export growth this year.
Data showed that total agro-based products, with a share of 6.1 percent in August 2015, amounted to $314.85 million. It dropped by 37.4 percent from $503.3 million in August 2014.
The Neda added that this was the steepest decline and seventh consecutive month of lower earnings posted by the sector. This was due to lower receipts from coconut products, fruits and vegetables, sugar products and other agro-based products.
To address these issues, Balisacan urged policymakers to focus on enhancing and designing domestic policies that could mitigate the negative impact of external as well as domestic shocks, such as El Niño.
He again stressed the need to tap new markets, diversify export products, and invest in research and development to create product innovations that can boost the export sector’s competitiveness.
Top buyers of Philippine products in August were Japan, which accounted for 20 percent of shipments, followed by the United States and China. Exports to Japan amounted to $1.02 billion in August 2015. This is 1.6 percent lower than the $1.04 billion recorded a year ago.
Shipments to the US during the period were valued at $766.38 million, 4 percent lower than the $798.26 million recorded in August 2014.
