By Bianca Cuaresma
THE declining exports, as seen in May this year, will likely continue until the end of the year, an economist said.
Weekly views from the Metro, the research outlet of Metrobank Group, said that the country’s export number is headed for a “weak year.”
“Weak demand from major trading partners continues to drag export growth. China, in particular, showed the deepest contraction—with a 32.2-percent decrease year-on-year from January to May—attributed to the country’s slowing economy,” the research group said.
Research analyst Mabellene Reynaldo from Metrobank also said that the lower exports have been seen as a trend in the rest of the region.
“Aside from the Philippines, the rest of Asean [Association of Southeast Asian Nations] are also showing a similar trend, posting lower exports, given that China is the region’s largest export market and their other trading partners, likewise, showing slowing demand,” Reynaldo said.
“Furthermore, soft global commodity prices also dragged values,” she added.
The analyst also said that exports are seen to be flat this year, carrying over the weakness seen until the end of the year.
“The weak global growth outlook, particularly with uncertainty coming from China and the euro zone, will continue to be downside risks to exports. Base effects will also pull growth performance,” Reynaldo said.
“Given this, domestic factors are likely to drive GDP [gross domestic product] growth this year,” she added.