Metrobank says exports will continue to grow

MANILA, Philippines - Merchandise exports are expected to continue growing after rising by its fastest pace in over three years amid recovery in advanced economies, the research arm of Metropolitan Bank & Trust Co. said.

“Expect exports to improve in the coming months, as economic recovery appears to be underway for US and Europe,” Mabellene Reynaldo, research analyst at the bank, said in the latest Weekly Views from the Metro.

“Downside risks still remain, especially in China and Japan which are the top trading partners of the Philippines,” she continued.

Reynaldo further said: “Electronic exports may perform better compared to 2013, while agro-based exports still have positive prospects in the second half once effects of Yolanda start to fade.”

Outbound shipments went up 24.4 percent to $3.741 billion in February, its fastest pace in over three years, data from the Philippine Statistics Authority showed.

Electronic exports, which made up 40.4 percent of the total exports, climbed 26.6 percent to $1.880 billion during the same month.

The National Economic and Development Authority (NEDA) has noted improvement in exports to a number of economies in East and Southeast Asia, which help drove growth in merchandise exports in February.

“Early signs of recovery in electronics export demand drove the improvement in overall figures... Improving demand for electronics from trading partners China and Japan fuelled the increase,” Reynaldo said.

“On the other hand, agro-based products posted a contraction for the period, as coconut oil exports dropped due to soft prices and sugar exports dipped as volumes were scaled back given increasing domestic demand and lower output from the destruction by Typhoon Yolanda,” she continued.

Japan continued to account for the biggest bulk of Philippine exports, followed by China, the United States, Hong Kong, and Singapore. Other top export markets include South Korea, Germany, Thailand, the Netherlands, and Taiwan.