Lowest contraction since November 2008

MANILA - Philippine merchandise exports continued to show signs of recovery in June as it posted the lowest annual contraction since November last year.

Data from the National Statistics Office (NSO) showed that exports fell 24.7% to $3.41 billion in June, better than the 27% drop recorded in the previous month. Since December 2008, the country's exports have been declining at a range of 30% to 40%.

Shipments of electronic products, which account for 57.1% of total export revenues, plunged 26% to $1.948 billion from $2.632 billion recorded in the same period last year. This was mainly caused by the 29.1% drop in semiconductor exports, which took the biggest share of electronic products at 39.3%.

Aside from electronics, other key exports of the Philippines include apparel and clothing accessories, woodcrafts and furniture, and other metal components, among many others. All of the country's top exports suffered year-on-year declines in June, led by petroleum products with a -68.5% growth.

The United States re-emerged as the country's top export destination in June, receiving $607.97 million or 17.8% of Philippine exports for the month. The amount, however is a 13.5% drop from $702.67 million recorded in the same period last year.

Japan, who was the top market last month, placed second with a 17% share of export earnings at $578.64 million. This was followed by the Netherlands ($290.63 million), China ($274.35 million), and Hong Kong ($256.69 million).   

The government has earlier projected a 13% to 15% drop in export earnings this year from a 2.86% slide in 2008, but the central bank said the actual decline could be less due to signs of recovery in the country's main markets like the United States.

Meanwhile, the country's main electronics industry group expects exports by the sector to drop by at least 15% this year, less pessimistic than its previous -20% estimate, with annual growth resuming in the fourth quarter. With a report from Reuters