Recovering global demand boosted the country’s exports in June to its fastest rate so far this year, supported by the electronics sector, which was in the black for the first time in 2014.
Growth of Philippine exports was faster than any other major Asian economy in June, a development that bodes well for the country’s economic prospects in the coming months, officials said Tuesday.
“Export gains are broad-based, as reflected by increased overseas demand for our manufactures, mineral products, total agro-based and forest product,” Economic Planning Secretary Arsenio Balisacan said in a statement.
The Philippine Statistics Authority (PSA) reported that exports rose by 21.3 percent in June—so far the best showing for any month this year. In May, exports grew by 6.9 percent. The value of exports shipped reached $5.4 billion, with close to half going to major trading partners Japan, China and the United States.
June’s increase meant the country’s exporters outperformed their counterparts in Vietnam, China, Malaysia, Singapore, Thailand, Indonesia, Hong Kong, South Korea, Taiwan and Japan. Among the country’s neighbors, Vietnam performed the best with a growth of 12.7 percent, while Japan was the worst, with its shipments contracting 6.5 percent.
“Today’s export data bodes well for (economic) growth,” Rahul Bajoria, economist at Barclays, said in a note to investors after the data was released. Barclays projected a 7.2-percent in crease in exports for June.
The bank expects the Philippine economy to grow by 6.5 percent this year, matching the lower end of the state’s target range of 6.5 to 7.5 percent.
Semiconductors, which comprised more than half of the country’s total electronics exports during the period, posted its first positive growth rate in 2014. These chips are used in computers that are shipped around the world. Electronics exports were up by a tenth, driven by the 14.5-percent expansion in semiconductors.
Barclays’ Bajoria said the recovery in the Philippine electronics sector was in line with the regional trend, which reflected increased demand from major markets like the United States and Europe.
Balisacan, who heads the National Economic and Development Authority (Neda), said the Semiconductors and Electronics Industries in the Philippines Inc. (Seipi) was likely to raise its forecast for shipments this year.