Philippine exports grew at their fastest pace in 6 months in June, on the back of a rebound in electronics shipments. The country is the top exporter among “trade-oriented” East and Southeast Asian economies, according to the government.
Export earnings in June totaled $5.44 billion, up 21.3% from $4.49 billion in June 2013. This was the fastest growth since December, when exports grew 24.9%.
For the first half of 2014, exports rose 8.3% to $29.8 billion from $27.5 billion in a comparable period last year, data from the Philippine Statistics Authority showed.
The Philippines outperformed Vietnam (12.7%), People’s Republic of China (7.2%), Malaysia (5.6%), Singapore (4.7%), Thailand (3.9%), Indonesia (3.8%), Hong Kong (2.7%), Republic of Korea (2.5%), Taiwan (1.2%), and Japan (-6.5%).
“This is the highest level since the economy started posting a continuous positive growth in the same period last year. It is also way faster than the 6.9% increase in May 2014 and the 4.1% in June 2013,” Economic Planning Secretary Arsenio Balisacan said.
“The export gains are broad-based, as reflected by increased overseas demand for our manufactures, mineral products, total agro-based, and forest products. This also indicates that the global economy is ready for a strong recovery,” he added.
Top export commodities
Shipments of the biggest export group, electronics, mainly semiconductors, rose 10.7% in June to $2.22 billion. This was a reversal of the 2.2% decline last year.
“The positive performance of semiconductor exports mirrored the upward trend in the global chip industry,” Balisacan said.
Other commodities that posted positive growth were:
machinery and transport equipment
other mineral products
articles of apparel and clothing accessories
ignition wiring set and other wiring sets used in vehicles, aircraft, and ships
Favorable performance throughout 2014
Balisacan said the overall outlook for Philippine exports was bullish in view of favorable expectations on the global economy, particularly the advanced countries of US and Europe.
On the domestic front, industry expectations also point to favorable export performance. The Semiconductors and Electronics Industries in the Philippines Inc. and exporters of some non-electronics manufactures such as furniture, fixtures, and garments “expect upward adjustment and expansions in their annual growth forecasts,” Balisacan noted.
“For agro-based commodities, bright prospects for banana and mango exports are seen on the back of a possible increase in market access, notably in Australia and the US,” the cabinet official concluded.
Japan biggest market
Japan was still the top destination of Philippine exports in June, accounting for 17.6% or $956 million of the receipts.
China came second, with a 15.8% share, followed by the US, with 13.8% share.
In terms of regional destination, shipments to the Association of Southeast Nationsmember-countries comprised about 14.2% of total exports while the European Union cornered 10.2%. – Rappler.com