Philippine export growth seen to have accelerated

The year-on-year growth in the value of Philippine exports is expected to have hit double digits at 10.2 percent in August as non-electronics shipments continued to cushion the slump in electronics, according to DBS Group.

The financial services provider said in a research note that a double-digit rise in exports would have come after two months of single-digit increases and after a single-digit average for January-July. The National Statistics Office is scheduled to release official export data on October 10.

“Export numbers have held up remarkably well over the last few months despite considerable headwinds.” DBS said. “For the first seven months of the year, exports actually rose by an average of 7.5 percent year on year each month.”

The group observed that Philippine exports have been hovering at around $4.5 billion since February this year, which it said was possible only because of the sustained increase in non-electronics manufactures such as machinery and transport equipment.

“Non-electronics manufactures were up by 68 percent year on year in the four months ending July,” the bank said. “This has more than offset the 17-percent drop in electronics exports over the same time period.”

DBS noted that in value terms, electronics exports have essentially halved since the peak of $3.5 billion set in September 2010.

“The outlook for exports remains challenging amid a backdrop of slow global growth, but non-electronics have provided a sizable cushion,” it said.