Philippines: Exports slow down in July
September 10, 2013
In July, exports rose 2.3% over the same month last year. The increase marked a deceleration from the 4.1% rise seen in the previous month. Nevertheless, the result was above market expectations of a 1.0% contraction.
The result mainly reflects a decline in the export of manufactures, which contracted 5.4% in July (June: 0.0%). Despite this drop, export of electronic products - which are classified as a sub-category of manufactures and account for 56% of exports - improved notably, rising from minus 2.2% in June to plus 11.2% in July. Exports of agro-based products rose 4.0% in July, which was less than the 7.6% rise recorded in June. FocusEconomics Consensus Forecast panelists see exports expanding 6.5% in 2013 and 7.8% in 2014.
In June (the latest month for which data is available), imports contracted 4.8% in annual terms (May: -2.4% year-on-year). Meanwhile, the trade deficit narrowed to USD 370 million in June (June 2012: USD 789 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