Exports sustain double digit growth for 4th month

Exports sustained a double-digit growth rate for a fourth straight month in May, rising by 17.3 percent to $3.877 billion from $3.304 billion in the same period last year, the National Statistics Office (NSO) reported yesterday.

"Although exports growth is lower than expected, it’s still quite an impressive number,’’ said Christy Tan, an economist at Bank of America in Singapore. "It suggests that the recovery in Philippine exports may be sustained."

In April, exports grew by a faster 20.5 percent to hit $3.911 billion.

Last year, exports growth slowed to four percent from 10 percent in 2004, capping overseas sales at $41.3 billion and helping drag annual economic growth to five percent from six percent.

Electronics exports, which account for about two-thirds of total shipments, grew 9.9 percent in May from a year ago, less than half the 20.7 percent pace reported in the previous month.

For the first five months of the year, exports were up 16 percent to $18.69 billion.

"The May export performance reflects broad-based growth as all major commodities, except forest products, recorded an expansion," Socioeconomic Planning Secretary Romulo L. Neri said.

Exports of mineral products surged by 134 percent; petroleum products, 21 percent; manufactured products by over 15 percent; and agro-based products by over three percent.

The sustained growth in exports is supported by the notable expansion in shipments of electronics which grew by 9.9 percent to $2.29 billion.

"Powering the demand for electronic components is the rising global demand for mobile phones, digital cameras, and laptop computers," Neri, who is also the National Economic and Development Authority (NEDA) director-general, said.

The Semiconductor and Electronic Industries of the Philippines (SEIPI) earlier reported that worldwide chip sales rose 9.4 percent in May from a year ago level following a strong demand in the US and Europe for digital music players and the latest mobile phones that can surf the Internet and play videos.

The group expects overseas sales of electronic goods to gain 10 percent this year, SEIPI President Arthur Young said

"Still, there is a risk that imports growth may surpass exports and potentially, we may see several months of trade deficit," Tan said.

Aside from electronics, other best performers of the manufacturing sector are garments and chemicals, which posted a year-to-date growth rate of 17.5 percent and 42.4 percent, respectively.

Mineral exports, especially copper metal, grew by 107.3 percent year-to-date with total revenues reaching $360 million in the first five months of 2006.

The production of the Malampaya reserves likewise sustained the strong performance of petroleum the sector with exports rising by as much as 104.5 percent during the five-month period.

Total agro-based products still managed to grow by 3.4 percent, led by higher shipments of bananas, coconut oil, prawns and natural rubber.

Shipments to Japan, the biggest buyer of Philippine goods, rose 23.3 percent to $672.2 million after gaining 6.27 percent the previous month. Sales to the U.S., the second-largest market, rose 16.6 percent to $703.5 million. Exports to China increased 8.6 percent to $345.6 million.