Philippines: Exports contract less in May
July 10, 2013
In May exports fell 0.8% over the same month last year, following the revised 11.1% drop seen in the previous month (previously reported: -12.8%). Moreover, the result was well above market expectations, which had exports contracting 14.1%.
The result mainly reflects an improvement in the export of manufactures and agro-based products. Manufactures contracted less in May compared to the previous month, dropping 10.6% relative to the 14.2% fall observed in April. Moreover, exports of agro-based products rose 13.4% in May contrasting the 5.1% fall in April. On the other hand, export of electronic products - which are classified as a sub-category of manufactures and account for 56% of exports - deteriorated, dropping 7.6% in May below the 0.4% fall in April. FocusEconomics Consensus Forecast panellists see exports expanding 6.5% in 2013 and 7.8% in 2014.
Meanwhile, in April - the latest month for which data is available - imports rose 7.4% in annual terms (March: -8.4% yoy). Following the large drop in exports in April the trade deficit widened to USD 1.02 billion (April 2012: USD 153 million deficit), which prompted the 12-month moving sum of the trade balance to reach a USD 10.5 billion deficit (March: USD 9.7 billion deficit). FocusEconomics Consensus Forecast panellists expect the trade deficit to widen in the months ahead and reach USD 12.4 billion in 2013 and USD 14.0 billion in 2014.