TRADE and Industry (DTI) Secretary Fred Pascual, on Friday, 14 July 2023, reported that the Philippine exports grew by 1.9% to USD 6.44 billion from USD 6.32 billion in May 2023, based on preliminary data from the Philippine Statistics Authority (PSA).
For the month of May, the Philippines outpaced the export growth of Malaysia, Indonesia, Singapore, Thailand, and Vietnam.
According to the DTI chief, “The rebound in export sales for the first time since November last year could be attributed to the electronics exports which have picked up by 6.7% after plummeting since December last year. This makes us optimistic that the slump has bottomed out and we can expect for a sustained growth in electronics exports in line with our overall export growth target under the new Philippine Export Development Plan.”
Likewise, sub-sectors of the electronics industry recorded double digit growth rates in May, particularly components and devices (semiconductors) (15.91%), other electronics (34.53%), and consumer electronics (27.28%).
Quicker improvements in operating conditions across the country’s manufacturing sector were observed in May supported by faster growth in both orders and output. According to S&P Global Philippines, the Philippines’ PMI rose to 52.2 from 51.4 in April 2023.
“We hope to sustain the growth of our PMI as we prioritize addressing challenges to create a more stable and sustainable manufacturing industry, which we recognize as critical in order to increase the country’s competitiveness in the global market and maintain its position as a trusted supplier of goods,” Secretary Pascual added.
Further, 12 out of 48 Philippine export commodity groups continue to drive the resurgence of the country’s export sector, reflecting consistent increases in export sales compared to the previous four (4) periods: 2022, 2021, 2020, and pre-pandemic average from 2017-2019. These export commodity groups include electronics, other mineral products, coconut oil, gold, copper concentrates, pineapple and pineapple products, travel goods and handbags, processed tropical fruits, seaweeds and carrageenan, Christmas decor, fertilizers, and nickel.
The electronics sector remains to be the Philippines’ biggest export, accounting for 57.5% of total exports in May 2023 with export sales value of USD 3.7 billion. This month’s top electronic exports are components/devices (semiconductors), electronic data processing, consumer electronics, and control and instrumentation. Electronic exports increased by USD 231.53 million compared to the same period last year.
The Philippines’ top market from January to May 2023 remains to be China, with export valued at USD 4.56 billion, followed closely by Japan at USD 4.24 billion.
During the International Trade Forum last 15 June, which centered on the launching of the Philippine Export Development Plan (PEDP) 2023-2028, President Ferdinand R. Marcos, Jr. highlighted that while the country’s total exports are growing, critical issues such as comparatively less-diversified export portfolio, trade barriers and frictions, must be addressed in order to unlock the great potential of the export sector.
In addition, the President emphasized that the growth of the country’s export industry holds the key to the attainment of national development targets, and as such, a whole-of-government, whole-of-nation approach is the only way to move forward.
