Philippine exports reached a record high of US$70.3 billion in 2019 from $69.3 billion last year despite external headwinds arising from global trade policy uncertainties, geopolitical tensions, and country-specific challenges, according to the Department of Trade and Industry (DTI).
With an export growth rate of 1.5% year-to-date, the Philippines was second best performer among East Asian economies, next to Vietnam, DTI noted. The Philippines, China, and Vietnam were the only three countries among 11 trade-oriented Asian economies to report positive export performance last year.
“Our goal was to expand the productive capacity and export base as well as [actively enhance] trade relations with existing partner economies, by marketing products abroad and exploring new export markets,” Trade Secretary Ramon Lopez said in a statement.
For the first time, electronics exports hit $40 billion with a 4.4% growth year-to-date. The sector accounted for 56.9% of total exports, with non-electronic products making up the remaining 43.1% at $30.3 billion. For non-electronic products, top growers were mineral products, fruits and vegetables, and travel goods and handbags.
The top four destinations for Philippine merchandise items last year were the US, Japan, China, and Hong Kong.
Lopez said that curbing inflation through aggressive price monitoring also contributed to making locally made products attractive internationally.
In December 2019, the Philippines was also the top performer with a 21.4% year-on-year growth, the fastest pace in 2019.
READ: PH trade recovers in Dec with 2.4% growth; imports down, exports up
This was largely on the back of a 24.9% year-on-year jump in electronic exports, which accounted for 60% of merchandise exports in December. Other top export items for the month that also recorded growth included bananas, chemicals, copper metal, machinery and transport equipment, among others.
Meanwhile, the Philippines’ merchandise imports decreased 4.8% to $107.4 billion in 2019.
As the full year’s export growth was positive and import growth negative, the country’s merchandise trade deficit narrowed 14.9% to $37 billion.
According to Lopez, this bodes well for the country’s external position since a smaller trade deficit would also lead to a narrowing of Philippines’ current account deficit.
Photo from DTI
