by: Sarah Joson
Tuesday, July 14, 2015 |
According to the National Economic and Development Authority (NEDA), Philippine exports will continue to see the effects of the slowing global economy.
The country’s exports declined by 17.4 percent to $4.899 billion year-on-year last May from $5.932 billion. Majority of the drop in exports was seen in the lower shipment segment, particularly machinery and transport equipment. Export activity also slowed down in apparel, clothing accessories, and electronic products.
NEDA also pointed out that the most recent figures are the lowest since December 2011. Moreover, the Philippines posted the largest drop in export revenues across the trade-oriented economies in East and Southeast Asia.
NEDA Officer-in-charge Emmanuel Esguerra said the recent results of Philippine exports and other Asian economies predict the general market outlook of the near future, which all points to a possible slowdown of the global economy.
In line with that, First Grade Finance Inc. Managing Director Astro del Castillo told GMA News Online that the slowdown also affected major trading partners such as China, which could only mean that consumption is weaker.
Esguerra pointed out that the latest Philippine trade numbers signify that shipments are also affected by volatilities in external markets. In addition to that, investors are said to be preoccupied with the Greek debt crisis, as well as the slowdown in China. He added that these external challenges cannot be avoided and the government should consider setting up programs that can help address and prevent possible negative effects.
Del Castillo said the Philippine government must take action and improve public spending to minimize the impact of the weaker global demand.
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