Exports rises by 24.4 percent

According to the Institute for Development and Econometric Analysis, Inc.  latest NewsBriefs, merchandise exports rose by 24.4 percent to USD4.654 billion last February from the USD3.741 billion recorded in the same period last year. On a monthly basis, export earnings increased by 6.3 percent from the USD4.379 billion posted in the previous month. Volume of outward shipments also increased annually.

The increase was influenced by higher exports of seven major commodities. Export earnings from Electronic Products increased by 26.6 percent to USD1.880 billion from the USD1.485 billion recorded last year. This is in spite of the 0.5 percent decline in export earnings of semiconductors to USD1.149 billion. Other Manufactures which earned a total of USD378.08 million increased by 16.7 percent, with volume also recording an annual increase. This was followed by a 55.6 percent increase in earnings from Woodcrafts and Furniture to USD341.07 million, a 91.8 percent increase in the revenue of Machinery and Transport Equipment exports to USD252.17 million and a 65.7 percent increase in export earnings of Chemicals, which totalled USD202.85 million.

Likewise per same published report, analysts expect the Philippine stock market to slow down in lieu of the Holy Week. While markets may improve, there is a great possibility that trade volume will decline as investors “stay on the sidelines” during the Lenten season. As a result, investors may get information from Wall Street as well as other regional indices to weigh where the market is going this week.

Per IDEA, debt payments of the government totalled PhP208.446 billion last January, increasing by 86.56 percent from the PhP11.73 billion payments made in the same period last year. Broken down, principal payments comprised PjP151.981 billion of the payments, up from the PhP55.223 billion recorded last year. Foreign lenders received PhP44.055 billion, posting a PhP1.666 billion increase from payments in comparative periods.

Furthermore, the International Monetary Fund expects the country to maintain its robust growth, which is estimated to be a t 6.5 percent, this year. Comparing this with the 7.5 percent expected growth for China, IMF officials stated that the country will be the fastest-growing economy in Asia, while growth in other countries, including China, would slow down. Amongst the members of the Association of Southeast Asian Nations, the Philippines and Malaysia are expected to post positive growth rates. IMF officials warn, however, that slower performance of both Japan and China may affect countries, with strong trade and foreign direct investment linkages with the said countries.

Lastly, monetary authorities stated that policy rates may change despite the fall in inflation last month. Inflation for March was at 3.9 percent, at the lower end of the central bank’s 3.7 percent to 4.6 percent target. While inflation eased, monetary officials expect the full year averages to be higher than the midpoint of their target range, narrowing the chances of policy rates being maintained. Higher averages are attributed to the possible price pressures from increase in power rates and food prices, as well as volatility in oil prices, according to the researches of IDEA.

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