Philippines: Exports surge in August
October 10, 2013
In August, exports rose 20.2% over the same month last year. The increase marked a massive acceleration from the 2.3% rise seen in the previous month. The result was the highest in 11 months, although it was in line with market expectations.
The result mainly reflects a rebound in the export of manufactures, which rose 8.7% in August (July: -4.8%). Despite this improvement, export of electronic products - which are classified as a sub-category of manufactures and account for 56% of exports - contracted 0.4% in August, which contrasted the 4.4% increase recorded in July. Exports of agro-based products rose 83.8% in August, which marked the highest expansion since April 2011. FocusEconomics Consensus Forecast panelists see exports expanding 6.5% in 2013 and 7.8% in 2014.
In July (the latest month for which data is available), imports rose 8.7% in annual terms (June: -4.5% year-on-year). Meanwhile, the trade deficit widened to USD 649 million in July (July 2012: USD 320 million deficit). FocusEconomics Consensus Forecast panelists expect the trade deficit to widen in the months ahead, reaching USD 12.4 billion in 2013 and USD 14.0 billion in 2014.
Author: Carl Kelly, Economist