(UPDATE) Philippine April exports up 4.9% from 2007
Reuters
First Posted 08:56:00 06/10/2008
MANILA, Philippines – Exports grew 4.9 percent in April from a year ago after a revised 6.6 percent annual contraction in March, government data showed.
Shipments of electronics products, the most important export group, were down 1.7 percent year-on-year reflecting soft demand in the West because of the economic slowdown.
Month-on-month exports in April were up 3.2 percent compared with a 2.0 percent month-on-month rise in March.
Electronics, largely assembled from imported parts, accounted for 58.2 percent of total export revenues in March. Electronics exports were up 2.9 percent month-on-month in April after a 0.4 percent contraction in March.
Exports to the United States, the country's top export destination in the month, rose 8.7 percent in April from a year ago, accelerating from the previous month's 1.0 percent annual increase.
Exports to Japan, the second-biggest market, rose 14.4 percent after rising 18.5 percent in March from a year ago.
Shipments to China rose 4.8 percent in April from a year ago compared with a 13.2 percent annual rise in March, while exports to Hong Kong fell 23.6 percent in April from a year ago.
Edward Teather, an economist from UBS said: "In dollar terms, they (the export figures) are relatively soft, and that is consistent with the picture given by the weakening global environment so it is not a huge surprise."
"The peso may provide some relief, but the danger is inflation pressures mean that the cost base is going up as well."
Frederic Neumann, an economist from Asia Pacific HSBC said while exports recovered after the contraction in March, "the Philippines remains a relative underperformer, as all other countries registered accelerating export growth in double digits."
"We remain very cautious on the export outlook because the weakness in the US is likely to persist and there are concerns that demand from Europe might soften as well."
Vishnu Varathan, an economist from Forecast Pte Ltd. said "the US SEMI Book-Bill ratio still shows a weak global electronics sector and inevitably the Philippines' major export components could come under some pressure."
"A weaker peso could provide some relief here though the suspicion is that it may not be enough to offset slowing demand. Manufacturers will be squeezed and this may be bad news for those on the margin."
The United States was the Philippines' top export market, accounting for 16 percent of total shipments. Japan was second at 15.4 percent, China was third at 12 percent and Hong Kong was fourth at 9.0 percent.
The Philippine government has revised its forecast of export growth in 2008 to 6.0 percent from 8.0 percent because of the slowdown in the West. Growth in 2007 was 6.05 percent.
The Philippines supplies about 10 percent of the world's semiconductor manufacturing services, including mobile phone chips and micro processors.
Other key exports include garments and accessories, vehicle parts, coconut oil and tropical fruit.
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