Exports from the Philippines grew at their fastest clip in three years in January as shipments of electronics took off.
Exports rose at their quickest pace in three years in January on demand for technology goods and commodities, while continuing strong imports underlined a buoyant domestic economy.
The Southeast Asian economy is one of the fastest growing in the world and strengthening global trade could complement robust domestic consumption as President Rodrigo Duterte's government aims to sustain annual growth above 7 percent during his six-year term.
Exports in January rose 22.5 percent from a year earlier, gaining for a second month in a row, while imports jumped 9.1 percent, data from the Philippine Statistics Authority showed on Friday.
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Country’s exports jumped 22.5 per cent year on year to $5.1bn in January, coming in above a median forecast from economists compiled by Bloomberg of 10.5 per cent growth.
Shipments of electronics, the country’s top export accounting for 46.1 per cent of total export revenue in January, increased 10.4 per cent year on year to $2.4bn.
Japan remained the Philippines’s largest export destination accounting for 17.3 per cent of total exports or $887.7m with the US its second largest market accounting for $847m.
Imports rose 9.1 percent year on year to $7.4bn, which was slightly below economists’ median estimate of a 10 per cent increase.
This resulted in the trade deficit of$2.3bn, coming in below estimates of $2.9bn and improving on the $2.56bn deficit in December.
Vishnu Varathan, senior economist at Mizuho Bank, said the spike in exports was largely in line with the strength in shipments elsewhere in Asia.
"There is a confluence of low-base effect and also seasonal uptick that went into the end of last year," he said.
Eight of the country's top 10 export products rose in January, with electronics up 10.4 percent from a year earlier. Electronics remained the country's No. 1 export, accounting for 46.1 percent of total revenue in January.
The country's biggest imports for the month were electronics, mineral fuels, transport equipment, industrial machinery, and iron and steel.
Exports to the country's top trading partners such as the United States and China increased 21.2 percent and 23.6 percent, respectively, in January from a year earlier. Shipments to Japan, the biggest export market, fell 6.6 percent.
While the Philippine economy is largely driven by domestic consumption, Varathan said it would also be buffeted by any change in external trends.
"We want to see how trade negotiations between the U.S. and China pan out and the corresponding knock-on effect that you'll see in Asia," Varathan said. With reports from Financial Times and Reuters
Top 12 World's fastest Internet, South Korea rank no. 1. Illustration Photo: businessinsider.com
