Philippines: Exports growth posts another strong month in December
February 11, 2014
In December, exports rose 15.8% over the same month of the previous year. The increase was below the 18.9% rise recorded in the previous month, but exceeded market expectations of a 10.4% increase. Moreover, December was the third straight month in which exports tallied double digit growth.
The result reflects solid growth in exports of manufacture, which expanded a robust 20.8% in December (November: +18.1% year-on-year). Export of electronic products - classified as a sub-category of manufactures and accounting for 56.0% of exports - expanded 26.1%, which more than doubled the 11.7% increase recorded in November. Meanwhile, export of agro-based products suffered due to the effects of Typhoon Haiyan, falling drastically from a 39.2% rise in November to a 27.8% contraction in December.
In the full year 2013, exports growth increased 3.6%, which was well below the 7.9% registered in 2012. FocusEconomics Consensus Forecast panelists see exports rising 7.1% in 2014 and expanding 8.9% in 2015.
In November (the latest month for which data are available), imports increased 0.5% in annual terms (October: -8.6% yoy). Meanwhile, the trade balance reached a USD 941 million deficit in November (November 2012: USD 1,597 million deficit). FocusEconomics Consensus Forecast panelists expect the trade deficit to widen in the months ahead, reaching USD 12.8 billion in 2014 and USD 14.5 billion in 2015.
Author: Carl Kelly, Economist