Economic news that matters

According to the Institute for Development and Econometric Analysis, Inc. (IDEA), our country’s net inflow of foreign portfolio investments (NIFP) narrowed by 54 percent in March compared to previous month's figure. NIFP in March only reached US$245.39 million. The month-on-month slowdown was attributed to the disaster in Japan.

The NIFP in March, however, grew three times the US$76.04 million seen in the same month last year. Moreover, foreign direct investments (FDI) in January registered a 21.8-percent year-on-year increase in net inflows, a reversal of the 52.8-percent drop in the same month a year ago. Net inflows were observed in all components of the FDI, signaling upbeat prospects for the economy for the year, the Bangko Sentral ng Pilipinas said.

Likewise, according to the same published reports, merchandise exports for February grew by 8.2 percent year-on-year to US$3.864 billion. Compared to previous month’s figure, however, export earnings decline by 3.4 percent. Earnings from Electronic Products, the country’s top exports with a 52.2-percent share to total, reached US$2.015 billion, representing a 2.7-percent decline from last year’s and a 5.9-percent decline from previous month’s. The 3.8-percent decline in Semiconductors was mainly accountable to the decline in the Electronic Products.

Furthermore it is interesting to note that the top five export earners are the following: Articles of Apparel and Clothing Accessories grew 21.2 percent year-on-year with a total receipts of US$153.42 million; Woodcrafts and Furniture rose by 73.8 percent year-on-year with receipts reaching US$79.4 million; Coconut Oil, which registered a 126.1-percent year on-year growth, contributing US$54.61 million to total export receipts; and Ignition Wiring Set and Other Wiring Sets Used in Vehicles, Aircrafts and Ships posted a 13.3-percent increment to US$103.98 million.

Overseas, Japan continues to be the sole biggest destination of the country’s exports with a 17.2-percent share of the total. Shipments to Japan expanded by 6.2 percent, which were valued at US$665.70 million. Exports to the United States of America reached 16.0 percent of total exports, valued at US$616.89 million. China, meanwhile, picked 11.2 percent of the total or equivalently US$433.80. Other major export markets were Singapore, Hong Kong, Thailand, Taiwan, Republic of Korea, Germany, and Taiwan.

Lastly it was reported that, the International Monetary Fund forecasted a 5-percent growth for the Philippines this year, a forecast identical to that of the Asian Development Bank and the World Bank. The government's growth target for 2011 is at 7-8 percent. While ADB and WB saw growth to pick up to 5.3 percent and 5.4 percent respectively next year, the IMF, meanwhile, maintained its forecast of 5 percent for next year, according to IDEA.

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