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The country’s export earnings recovery may have been brief, as sales of Philippine product shipments 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 registering 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 fell 12.8 percent.
“The country’s total export sales in January 2021, which amounted 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, ”said PSA.
PSA data showed that the country’s top commodity exports were still electronics that earned $ 3.24 billion, accounting for 59.1 percent of total exports in January 2021.
It was followed by other manufactured products with an export value of $ 292.68 million or 5.3 percent of the total; and set of ignition cables and other sets of cables used in vehicles, aircraft and boats that amounted to $ 224.65 million at 4.1 percent.
The PSA noted that of the 10 main commodity groups in terms of export value, four registered annual decreases, led by fresh bananas with a decrease of 46.9 percent.
This was followed by other manufactured products that contracted by 12.8 percent; machinery and transport equipment, 11.9 percent; and coconut oil, 11.7 percent.
Declining imports
Meanwhile, imports hit a two-month low of 14.9 percent in January. This is the 21st consecutive month that the country’s import bill has decreased.
“Total imported goods in January 2021, which amounted to $ 7.91 billion, remained in a downward trend with an annual rate of -14.9 percent,” said PSA. “The value of imports registered a negative annual growth rate for 21 consecutive months since May 2019. In December 2020, the annual decrease was less than -8.2 percent, while in January 2020, imports decreased by – 2.8 percent annually “.
As with exports, the country’s top imported products were electronics with an import value of $ 2.34 billion or a 29.6 percent share of total imports in January 2021.
This was followed by mineral fuels, lubricants and related materials, valued at $ 681.74 million, which represented 8.6 percent of the total; and transportation equipment that amounted to $ 565.08 million at 7.1 percent.
The data indicated that the annual decline in imported goods in January 2021 was due to the decline in nine of the top 10 imported commodities.
The contraction of the import bill was the deepest in machinery and industrial equipment with 36.9 percent, followed by transportation equipment with 36.8 percent and mineral fuels, lubricants and related materials with 33, 6 percent.
In addition, the PSA said that the total import value of personal protective equipment (PPE) and medical supplies in January 2021 increased to $ 24.81 million, representing a year-on-year increase of 33 percent.
The annual growth in the value of imports of these medical items in the previous month was recorded at 76.9 percent, while in January 2020, the annual increase was recorded 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 important markets were Japan, with 806.04 million dollars 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 largest supplier of goods, accounting for $ 1.93 billion or 24.4 percent of total imports in January 2021.
Other important sources of imports 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 the US, $ 518.39 million or 6.6 percent.
Image credits: Qilai Shen / Bloomberg
