Image credits: Qilai Shen/Bloomberg
THE recovery of the country’s export earnings may have only been short-lived as sales from shipments of Filipino products abroad contracted again in January 2021, according to the Philippine Statistics Authority (PSA).
In a statement, the PSA said the country’s export earnings contracted 5.2 percent in January 2021, after posting a growth of 1.7 percent in December and 4 percent in November last year.
The contraction in January was the lowest since August 2020 when export earnings declined 12.8 percent.
“The country’s total export sales in January 2021, amounting to $5.49 billion, decreased at an annual rate of 5.2 percent, from an annual increase of 1.7 percent in the previous month and 9.4 percent in January 2020,” PSA said.
PSA data showed the country’s top commodity exports were still electronic products which earned $3.24 billion, accounting for 59.1 percent of the total exports in January 2021.
This was followed by other manufactured goods with an export value of $292.68 million or 5.3 percent of the total; and ignition wiring set and other wiring sets used in vehicles, aircrafts, and ships which amounted to $224.65 million at 4.1 percent.
The PSA noted that of the top 10 major commodity groups in terms of value of exports, four recorded annual decreases, led by fresh bananas with a decline of 46.9 percent.
This was followed by other manufactured goods which contracted 12.8 percent; machinery and transport equipment, 11.9 percent; and coconut oil, 11.7 percent.
Imports declining
Meanwhile, imports posted a two-month low with 14.9 percent in January. This is the 21st consecutive month that the country’s import bill has been on the decline.
“Total imported goods in January 2021, which amounted to $7.91 billion, remained at downtrend with an annual rate of -14.9 percent,” PSA said. “The value of imports registered a negative annual growth rate for 21 consecutive months since May 2019. In December 2020, the annual decline was lower at -8.2 percent while in January 2020, imports decreased by -2.8 percent annually.”
As with exports, the country’s top imported goods were electronic products with an import value of $2.34 billion or a share of 29.6 percent to the total imports in January 2021.
This was followed by mineral fuels, lubricants, and related materials, valued at $681.74 million which accounted for 8.6 percent of the total; and transport equipment which amounted to $565.08 million at 7.1 percent.
The data indicated the annual decline of imported goods in January 2021 was due to the decrease in nine of the top 10 major import commodities.
The contraction of the import bill was the deepest in industrial machinery and equipment at 36.9 percent, followed by transport equipment at 36.8 percent and mineral fuels, lubricants, and related materials at 33.6 percent.
Further, the PSA said the total import value for Personal Protective Equipment (PPE) and medical supplies in January 2021 increased to $24.81 million, representing a 33-percent increase year on year.
The annual growth of import value for these medical items in the previous month was recorded at 76.9 percent, while in January 2020, the annual increase was noted at 17.2 percent.
Markets
The country’s top export markets in January 2021 were led by the United States which accounted for 15.6 percent or $854.43 million of total export earnings.
Other top markets were Japan accounting for $806.04 million or 14.7 percent of the total; the People’s Republic of China, $800.06 million or 14.6 percent; Hong Kong, $711.77 million or 13 percent; and Thailand, $291.93 million or 5.3 percent.
In terms of import sources, PSA data showed that China was the country’s biggest supplier of goods, accounting for $1.93 billion or 24.4 percent of the total imports in January 2021.
Other top import sources were Japan which accounted for $667.77 million or 8.4 percent of total imports; Indonesia, $526.71 million or 6.7 percent; Republic of Korea, $524.84 million or 6.6 percent ; and USA, $518.39 million or 6.6 percent.
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