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Exports recorded a strong rebound of 11.31% in July, surpassing the $ 1 billion mark for the first time since January and recording a 20.3% increase over the same period last year, the latest data from the Export Development Board showed.
As per the Customs statistics, earnings from merchandise exports recorded a double-digit growth rate of 11.31% in July 2020 to $ 1,090.18 million compared to July 2019. Moreover, earnings from merchandise exports in July 2020 increased by 20.3% compared with the value recorded in June 2020.
This strong performance is consistent with the gradual lifting of restrictions due to the COVID-19 pandemic within the country and globally, the EDB said in a statement. Increases in exports were recorded as Europe Region (21.17%), South Asia (11.47%) and Middle East (8.91%) in July 2020 compared to July 2019.
Being the largest single export destination, United States of America has absorbed $ 256.09 million worth of exports in July 2020 recording a 5.67% increase in comparison to $ 242.36 million absorbed in June 2020.
Export earnings from Tea in July 2020 which made up 12% of merchandise exports increased by 17.63% y-o-y to $ 130.93 million and export volume also increased by 11.24% in July 2020 compared to July 2020. In addition, export earnings from Tea recorded a 1.39% increase in June 2020 in comparison to June 2019. The expansion was mainly due to higher demand for tea from Turkey and Russia.
Earnings from all the major categories of Coconut-Based products increased in July 2020 compared with July 2019 and a notable performance in export of coconut oil, cocopeat and activated carbon.
In addition, export earnings from Rubber and Rubber Finished products have increased by 8.78% y-o-y to $ 85.08 million in July 2020 with strong performance in exports of gaskets, washers, seals, etc. of Hard Rubber. However exports of industrial and surgical gloves of Rubber have slightly declined by 1.73% y-o-y to $ 43.74 million in July 2020.
Export earnings from Spices and Essential Oils have increased significantly in July 2020 compared with June 2019 with a significant increase in cinnamon (63.6%) and pepper (46.3%). Further, export earnings from Spices and Essential Oils increased by 30 % in July 2020 in comparison to June 2020.
Meanwhile, export earnings from Electrical and Electronic Products (-1.47%) and Seafood (-9.42%) recorded a decline during the month of July 2020 compared with July 2019.
Earnings from exports of Apparel and Textiles and Rubber and Rubber-Based products grew significantly during the month of July 2020 owing to higher demand for Personal Protective Equipment (PPE) such as face masks, protective suits, surgical gloves, etc. PPE-related exports recorded $ 115.1 million in July 2020.
Export earnings from Apparel and Textiles increased by 16.16 % to $ 467.04 million during the month of July 2020 compared with $ 402.04 million recorded in June 2020. However, a 1.37% decline was recorded in July 2020 in comparison to July 2019.
Total export earnings for January to July 2020 was $ 5,452.53 million compared to $ 6,909.12 million recorded in a similar period of the previous year – a decline of 21.08%. However the gap created due to COVID-19 in April 2020 is further decreased. This is a 72.5% achievement of the Revised Merchandise Export Target of $ 7,521 million in 2020.
Major Exports such as Apparel and Textiles ($ 2403.70 m), Tea ($ 702.59 m) and Coconut and Coconut-Based products ($ 356.39m) and Rubber and Rubber-Based products ($ 434.25 m) recorded decreases of 25.49%, 11.76%, 18.88% and 3.77% respectively during Jan-July 2020 compared to the similar period of previous year. Petroleum and Other Export crops recorded positive growth rates during the period.
The export sectors that show positive growth at disaggregate level includes export of gaskets, washers, seals, coconut cream, coconut milk, coconut vinegar, coconut shell charcoal, mattress fibre, pineapples, arecanuts, tamarind, ginger, essential oils, lemons, sweat potatoes and lentils, etc.
The top five export destinations during the period Jan-July 2020 were United States of America ($ 1,403.54 m), United Kingdom ($ 461.7 m) India ($ 339.4 m), Germany ($ 312.6 m) and Italy ($ 233.5 m).
In addition, exports to EU Region recorded an increase of 21.67% to $ 356.64 m in July 2020 compared with July 2019. Meanwhile, exports to United Kingdom as the largest trading partner in the EU region recorded an increase of 18.66 % to $ 100.1 m in July 2020 compared with July 2019. In addition exports to the UK increased by 53.08% in July 2020 compared to June 2020.
Further, exports to Germany, Italy, Belgium, Netherlands, Canada, China, Japan and Turkey have also shown better performance during this period.
The Services exports estimated by EDB which includes ICT/BPM, Construction, Financial Services, Transport and Logistics and Wellness Tourism show exports of $ 2,044.6 million for the period of Jan-July 2020 compared to $ 2,364.7 million recorded in the corresponding period of the previous year.
However, estimated Service exports declined by 13.53% during the period of Jan-July 2020 compared with the corresponding period of the previous year.
