Manufacturing, trade growth likely sustained

Economists expect sustained strong growth in manufacturing and external trade in May amid robust demand from both domestic and foreign markets.

In a report on Friday, the research arm of Moody’s Corp. said it was expecting industrial production to have expanded by 7.8 percent year-on-year in May, higher than April’s 5.9 percent.

“The archipelago’s manufacturers are receiving a boost from improved global demand, which is supporting the export-oriented electronics industry. But the main driver of manufacturing growth will continue to be domestic demand,” Moody’s Analytics said.

Also, “both private investment and consumption are rising rapidly thanks to favorable demographics and ample investment opportunities that will leave the Philippines one of the fastest growing economies globally for the foreseeable future,” Moody’s Analytics added.

In an e-mail to reporters also on Friday, DBS Bank Ltd. economist Gundy Cahyadi said merchandise exports likely jumped by 15.7 percent year-on-year in May.

Imported goods last May, meanwhile, likely inched up 2.2 percent from a year ago, resulting in a trade position still in favor of imports worth $1.6 billion, Cahyadi added.

For Cahyadi, import growth was sustainable while the increase in exports enjoyed early this year would slow down.

“While staying supportive of the GDP [gross domestic product] growth outlook, expect export growth to moderate in the second half of 2017. In fact, exports data from elsewhere in the region suggest that this moderation might have even started in the second quarter,” Cahyadi explained.