Commodity exports dropped to $6.2 billion in July 2022, following the second month of decline in electronics exports, preliminary data from the Philippine Statistics Authority showed.

Electronics exports declined further by 7.9 percent in July 2022, $291.5 million lower as compared to July 2021. Despite the decline, the electronics sector remains the country's top export commodity, with total revenue of $3.4 billion, or 54.6 percent of the country's total exports.

Meanwhile, cumulative electronics export figures from January to July 2022 remain two percent higher than the same period last year.

Likewise, the weakening of the export performance of copper cathodes and other mineral products also contributed to the decline in the country's export receipts in July.

"We recognize the continuing challenges in the domestic and global trading environment and we hope to address the binding constraints to Philippine export competitiveness as we draft and implement the Philippine Export Development Plan for 2023 to 2028," Trade Secretary Alfredo Pascual said.

"The PEDP being drafted features a more robust analysis of our priority export products and its corresponding markets, wider stakeholder engagement, and a proactive legislative agenda," he added.

Traditional exports grow

However, the decline was softened by an increase in the country's exports of 22 other commodity groups led by coconut oil, gold, chemicals, other manufactured goods, and machinery and transport equipment.

Despite the decline, total exports for the first seven months of the year, which totaled $44.7 billion, are still 5.4 percent higher compared to 2021 export figures. Cumulative export growth was driven by higher sales generated from coconut oil, electronic products, other mineral products, gold, and chemicals.

Exports to major trading partners, namely Singapore (33.1 percent), Netherlands (18.3 percent), and the USA (13.0 percent), recorded double-digit growth during the said period.

"We will pursue industry clustering and regional approach to export development to advance the implementation of production-based regional development."

"We will also disperse innovation throughout the country and drive regional industrialization by establishing and supporting Regional Inclusive Innovation Centers that will enable collaboration among innovation agents to develop and commercialize market-oriented outputs," Pascual added.

Among agricultural goods, coconut oil remains the Philippines' top export product for January to July 2022. The export value of coconut oil reached $1.5 billion or 102.58 percent higher than pre-pandemic level. Overall, exports of coconut products increased to $1.8 billion or 88.6 percent compared to $955.8 million in 2021.

Despite domestic and external challenges, 23 out of 48 Philippine export commodity groups showed strong growth in export sales this year compared to three time periods: 2021, 2020, and the pre-pandemic average from 2017 to 2019.