Philippines: Exports growth notably decelerates in June
August 10, 2017
Philippine exports recorded another month of growth in June, mainly resulting from stronger demand from Hong Kong more than offsetting considerably weaker demand from Japan, the United States and Singapore, and a slight decrease in demand from China. Exports ticked up by an annual rate of 0.8%, which represented a significant deceleration from May’s 13.7% expansion. June’s result reflected sharp decelerations in the growth of manufactured products and agro-based products.
Exports of manufactured products remained flat in June compared to the same month of the last year, well below the 8.5% expansion recorded in May. Exports of electronic products, which are classified as a sub-category of manufactured goods and account for the largest share of total export revenues, expanded 4.4% in June, significantly below May’s 17.8%. However, growth in exports of electronic products was offset by sharp contractions in exports of garments and wood manufactures. Furthermore, growth in exports of agro-based products backed down from 53.4% in May to a paltry 0.3% in June.
In June, imports contracted 2.5%, which strongly contrasted the 16.6% year-on-year contraction recorded in May and marked the lowest result in over two years. The trade balance in June recorded a USD 2.1 billion deficit, narrowing both from May’s USD 2.8 billion deficit and the USD 2.4 billion deficit recorded in June 2016.