Exports decline for 5th consecutive month, though decline rate slowing
Photo Credit: Philippine Ports Authority Facebook Page
Total exports in July 2020 continued to decline for the fifth successive month because of the COVID-19 pandemic on global trade, but the rate of decline was weaker compared to a month ago, the Philippine Statistics Authority said on Thursday.
Data showed that exports sales for the month reached $5.65 billion, 9.6% lower than the $6.25 billion a year ago. Exports fell by 12.5% year-on-year in June 2020. In July 2019, export performance gained at a rate of 4.8%.
“The export earnings in July 2020 marked the fifth month in a row in which the value of export contracted but the annual drop continued to weaken as it posted its third consecutive month of slower decline during the period,” PSA said.
Of the top ten major commodity groups in terms of exported value, eight had annual decline, led by gold (-41.6%); ignition wiring sets and other wiring sets used in vehicles, aircrafts and ships (-35.9%); and machinery and transport equipment (-30.9%).
These latest figures brought total exports in the first seven months to $34.13 billion, 16.4% lower than the $40.829 billion a year ago.
By commodity group, exports of electronic products continued to be the country’s top export with total earnings of $3.35 billion. This amount accounted for 59.3% of the total exports in July 2020. This was followed by other manufactured goods with an export value of $297.09 million and other mineral products which amounted to $219.74 million.
Exports to the United States comprised the highest export value amounting to $1.03 billion (18.3%) during the month.
Completing the top five major export trading partners were the People’s Republic of China with export value of $908.61 million (16.1%); Japan with $811.84 million (14.4%); Hong Kong with $772.49 million (13.7%); and Singapore with $329.82 million (5.8%).
By economic bloc, $4.88 billion (86.3%) of the country’s merchandise exports in July 2020 went to Asia-Pacific Economic Cooperation (APEC) member countries. This was followed by East Asia, valued at $2.87 billion (50.7%) and the Association of Southeast Asian Nations (ASEAN), which amounted to $858.36 million (15.2%).
Meanwhile, imports continued to decline in July 2020 to $7.48 billion from $9.89 billion a year ago.
“Value of imports contracted for the fifteenth straight month in July 2020. In the previous month, the decline was slower at 23.1%, while in July 2019, imports decreased by 0.9% annually,” the PSA said.
The decrease in imports was due to the year-on-year decline in all of the top 10 major import commodities which was led by transport equipment (-69.2%); cereals and cereal preparations (-37.8%); and mineral fuels, lubricants and related materials (-36.2%).
The cumulative import value from January to July 2020 amounted to $46.64 billion, 28.1% lower than the $64.89 billion a year ago.
Electronic products, valued at $2.38 billion, contributed the highest share of 31.8% to total imports in July 2020. This was followed by mineral fuels, lubricants and related materials with an import value of $746.96 million and industrial machinery and equipment which amounted to $405.53 million.
China was the country’s biggest supplier of imported goods with 25.2% share to total imports in July 2020. Import value from this country amounted to $1.88 billion during the month, down from $2.30 billion in July 2019.
Completing the top five major import trading partners were Japan with import value of $726.65 million (9.7%); Republic of Korea with $588.92 million (7.9%); USA with $522.66 million (7.0%); and Singapore with $518.86 million (6.9%).
The balance of trade in goods deficit in July shrank by 49.8% to $1.827 billion from a shortfall of $3.64 billion a year ago. This brought the trade deficit in the first seven months to $12.501 billion, down from the $24.065 billion in the same period last year.
Data showed that exports sales for the month reached $5.65 billion, 9.6% lower than the $6.25 billion a year ago. Exports fell by 12.5% year-on-year in June 2020. In July 2019, export performance gained at a rate of 4.8%.
“The export earnings in July 2020 marked the fifth month in a row in which the value of export contracted but the annual drop continued to weaken as it posted its third consecutive month of slower decline during the period,” PSA said.
Of the top ten major commodity groups in terms of exported value, eight had annual decline, led by gold (-41.6%); ignition wiring sets and other wiring sets used in vehicles, aircrafts and ships (-35.9%); and machinery and transport equipment (-30.9%).
These latest figures brought total exports in the first seven months to $34.13 billion, 16.4% lower than the $40.829 billion a year ago.
By commodity group, exports of electronic products continued to be the country’s top export with total earnings of $3.35 billion. This amount accounted for 59.3% of the total exports in July 2020. This was followed by other manufactured goods with an export value of $297.09 million and other mineral products which amounted to $219.74 million.
Exports to the United States comprised the highest export value amounting to $1.03 billion (18.3%) during the month.
Completing the top five major export trading partners were the People’s Republic of China with export value of $908.61 million (16.1%); Japan with $811.84 million (14.4%); Hong Kong with $772.49 million (13.7%); and Singapore with $329.82 million (5.8%).
By economic bloc, $4.88 billion (86.3%) of the country’s merchandise exports in July 2020 went to Asia-Pacific Economic Cooperation (APEC) member countries. This was followed by East Asia, valued at $2.87 billion (50.7%) and the Association of Southeast Asian Nations (ASEAN), which amounted to $858.36 million (15.2%).
Meanwhile, imports continued to decline in July 2020 to $7.48 billion from $9.89 billion a year ago.
“Value of imports contracted for the fifteenth straight month in July 2020. In the previous month, the decline was slower at 23.1%, while in July 2019, imports decreased by 0.9% annually,” the PSA said.
The decrease in imports was due to the year-on-year decline in all of the top 10 major import commodities which was led by transport equipment (-69.2%); cereals and cereal preparations (-37.8%); and mineral fuels, lubricants and related materials (-36.2%).
The cumulative import value from January to July 2020 amounted to $46.64 billion, 28.1% lower than the $64.89 billion a year ago.
Electronic products, valued at $2.38 billion, contributed the highest share of 31.8% to total imports in July 2020. This was followed by mineral fuels, lubricants and related materials with an import value of $746.96 million and industrial machinery and equipment which amounted to $405.53 million.
China was the country’s biggest supplier of imported goods with 25.2% share to total imports in July 2020. Import value from this country amounted to $1.88 billion during the month, down from $2.30 billion in July 2019.
Completing the top five major import trading partners were Japan with import value of $726.65 million (9.7%); Republic of Korea with $588.92 million (7.9%); USA with $522.66 million (7.0%); and Singapore with $518.86 million (6.9%).
The balance of trade in goods deficit in July shrank by 49.8% to $1.827 billion from a shortfall of $3.64 billion a year ago. This brought the trade deficit in the first seven months to $12.501 billion, down from the $24.065 billion in the same period last year.
