Exports rebound at start of 2Q, but electronics shipments fall 23.8%

By: InterAksyon.com
June 14, 2012 10:22 AM

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MANILA – (UPDATED 2:41 p.m.) Philippine merchandise exports rebounded at the start of the second quarter, but the country’s top shipment, electronics, fell by double-digits, indicating weakness in markets abroad.

In a report, the National Statistics Office said exports grew by 7.6 percent year-on-year to $4.636 billion in April, reversing the 0.8 percent contraction in March.

Leading the exports growth in April were ignition wiring sets and metal components, which increased by 146 percent and 113.2 percent, respectively. But ignition wiring sets comprised only 2.9 percent of total exports, while metal components, 2.6 percent.

The biggest chunk of the country’s exports at 35.5 percent of the total amount shipped in April remains electronics, which contracted by 23.8 percent year-on-year from the 1.1 percent gain the month before.

Philippine electronics exports are mostly components used in the manufacture of final consumer products in other countries.

Benjamin Diokno, economics professor, at the University of the Philippines, said the country's electronics sector continues to struggle, contracting 1.83 percent in the first four months.

"A recovery means a growth of 23.8 percent or higher. Clearly the slide of electronics exports continues," he said.

Before the release of April export figures, the Semiconductor and Electronics Industries of the Philippines Inc. had said it was sticking to its 10 to 15 percent growth forecast for the industry.

Government target at "grave risk"

Diokno, a former budget secretary during the Estrada administration, said the government's target is at "grave risk."

The April exports performance led to a 5.5 percent year-on-year increase in total shipments in the first four months of this year. The government is aiming for full-year growth of 10 percent.

"Philippine exports have yet to recover from last year's 6.9 percent contraction. A strong recovery is unlikely," he said, adding that the world economy has turned uglier.

"The consensus among economists is that the global economy is going to face stronger headwinds with the eurozone crisis deepening, the US economy either stagnating or slowing, and China's economy facing a hard landing," he added.

The latest data from NSO showed that Japan was the Philippines’ top export market in April at nearly 16 percent of total sales abroad, but shipments to that market fell by 0.4 percent.

In contrast, shipments to the US, which accounted for nearly 15 percent of Philippine exports, rose 19.2 percent.

Demand for Philippine products surged 211 percent in Korea, which bought 14.2 percent of Manila’s total exports.

China’s purchases from the Philippines comprised 10.7 percent of its total exports, and inched up 1.2 percent year-on-year.

With a report from Darwin G. Amojelar

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