Trade surplus widens

The country's trade surplus widened to $419 million in February from $313 million a year earlier despite continuing strong imports, the National Statistics Office (NSO) reported yesterday.

Spurred by the strong demand for electronics and components, imports rose by 10 percent to $2.483 billion in February from $2.257 billion a year ago.

Analysts said that following a 10.6-percent growth in imports in January, the February data is further evidence that the economy has started on sound footing this year.

"The trade data is consistent with a growth scenario... nothing dramatic just steady recovery," said Luz Lorenzo research here of ATR-Kim Eng Securities Inc.

Analysts believe the stronger imports will fuel the manufacturing sector and help sustain economic growth this year despite slower growth in agriculture, which underpinned the economy last year.

Exports rose 13 percent to $2.902 billion in February from $2.569 billion in February 1999, the government statistics office said.

For the first two months of the year, the trade surplus narrowed to $485 million from $494 million a year ago.

David Fernandez, regional economist for JP Morgan, said the country's imports will probably increase during the rest of the year as economic activity picks up and consumer demand rises.

Imports of consumer goods dropped by 15 percent to $184.5 million in February from $216.7 million a year ago, reflecting a weak demand.

A bright spot in the import data is the steady rise in capital goods purchases which accounted for 41 percent of total imports, indicating a further expansion in the domestic economy.

Among the country's top import, electronics and components remained the biggest with purchases worth of $668.74 million, up from $611.14 billion a yearago.

Purchases of mineral fuels, lubricants and related materials ranked second with a 10.2-percent share. Payment reached $252.3 million for a dramatic 104-percent increase from a year ago.

Other top imports for February were: Telecommunications equipment and electrical machinery, $204.86 million; industrial machinery and equipment, $166.60 million; imported accessories, $135.26 million and office and EDP machines, $107.36 million. --