MANILA, Philippines — Exports declined anew in October after registering growth for the first time in months in September, reflecting inconsistent global demand as several major economies reimposed new lockdowns during the period.

Preliminary data released by the Philippine Statistics Authority (PSA) yesterday showed that export sales in October amounting to $6.2 billion declined by 2.2 percent on an annual basis, coming off the revised 2.9 percent annual expansion in September when export sales reached $6.25 billion.

In October 2019, exports were valued at $6.34 billion, registering an annual growth of 0.5 percent.

Year-to-date earnings from outbound shipments were still 12.5 percent lower at  $52.11 billion from January to October compared with the same 10-month period last year.

Among the top 10 major export commodities across all trading partners, declines were seen in the outbound shipments of bananas, ignition wiring sets, manufactured articles, machinery and transport equipment, and electronic products which still accounted for more than half of export sales.

“Exports are back in the red, with the mainstay electronics sector struggling in the face of inconsistent global demand. Despite a brief reopening of major economies by mid-year, we’ve now seen a resurgence in COVID-19 infections force authorities to shut down parts of their economies, weighing down on hope for an export recovery,” said Nicholas Mapa, senior economist at ING Bank in Manila.

Imports, meanwhile, declined for the 18th consecutive month in October, with the total value of inbound shipments amounting to $7.98 billion, a decline of 19.5 percent annually, faster than the 15.3 percent annual decline in September.

Declines were seen in the inbound shipments of transport equipment; mineral fuels, lubricants and related materials; industrial machinery and equipment; miscellaneous manufactured articles; plastics; food and live animals; as well as iron and steel.

Year-to-date value of imports declined by 25.2 percent  to $70.04 billion compared with the $93.61 import value in January to October 2019.

“The sustained drop-off in imports, in particular capital imports and consumer imports belie a Philippine economy in terrible shape,” said Mapa.

“Double digit losses in consumer imports point to anemic domestic demand as job losses mount and overall business conditions stay subdued. Meanwhile, the continued free fall in capital imports point to fast-fading productive capacity as investment in heavy machinery is put off until the economy recovers its footing.”

With exports and imports on the decline in October, total external trade continued to contract by 12.8 percent in October to $14.18 billion, faster than the 8.2 percent decline in September when total trade was placed at $14.29 billion.

The sharper decline in imports caused the trade deficit to narrow to $1.777 billion in October from $1.783 in September.

Mapa said the October trade number suggests the economy may already be losing momentum amid the prevailing recession.

“The trends point to an economy losing steam and a domestic demand hurt by a festering recession,” he said.

The National Economic and Development Authority (NEDA) said the government will be prioritizing the safe opening of the economy, as well as connectivity and logistics reforms to bring down cost and improve competitiveness of the trade sector amid the pandemic.

“As traditional means of connecting buyers to suppliers are limited at the moment, the government and the private sector need to work together to harness digital platforms and alternative means to source from, and supply to, the country,” said acting Socioeconomic Planning Secretary Karl Chua.