Exports up 7.8% in July

MANILA, Philippines - Philippine merchanside exports rose 7.8 percent in July from a year ago but outbound shipments of electronic products continued to decline, the National Statistics Office (NSO) reported yesterday.

The NSO said export earnings went up to $4.807 billion in July this year from the $4.460 billion recorded last year.

Compared to last month’s $4.314 billion, July export earnings posted an 11.4 percent increase.

Cumulative merchandise exports for the January to July period also showed a positive growth of 7.7 percent to $31.564 billion from the $29.306 billion posted in the same period last year.

“The increase can be attributed to the higher annual growth in seven out of the 10 top Philippine exports in July 2012 including activated carbon, metal components, bananas, ignition wiring set and other wiring sets used in vehicles, aircrafts and ships, pineapple and pineapple products, tuna and woodcrafts and furniture,” the NSO said.

Electronic products, the country’s top export, fell by 25.6 percent to $1.675 billion from a year ago.

Exports of semiconductors were also down by 12 percent to $1.344 billion from last year.

The NSO noted that metal components, which was the country’s second top export for the month, meanwhile, surged 783.6 percent to $647.64 million from last year.

Woodcrafts and furniture exports, which was the third top export earner for the month, expanded 6.4 percent to $176.73 million from the previous year.

Exports of ignition wiring set and other wiring sets used in vehicles, aircrafts and ships valued at $136.80 million increased 32 percent from last year.

Bananas with export receipts of $68.50 million, grew 57 percent from last year.

Pineapple and pineapple products with export earnings of $46.95 million also posted a 17.5 increase from last year.

Activated carbon with recorded sales of $39.56 million surged 973.6 percent from a year ago.

Outbound shipments of tuna were valued at $27.68 million rising 7.2 percent from the previous year.

By destination, the NSO noted that Singapore had the biggest share of the country’s exports in July, getting a 17.3 percent share with revenues amounting to $832.45 million.

The export items to Singapore consist mainly of machinery and transport equipment and semiconductors.

Japan was the second top market for Philippine exports accounting for a 15.9 percent share or revenues worth $764.13 million.

The United States of America including Alaska and Hawaii came in third with a 13.9 percent market share or shipments amounting to $667.64 million.

Philippine Exporters Confederation president Sergio Ortiz-Luis Jr. said in a telephone interview yesterday the group is keeping its 10 percent exports growth projection for the year.

“It may just be harder to meet the target because of the strong local currency,” he said.

Commenting on the July result, Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. told reporters on the sidelines of the Asian Seminar on Financial Literacy and Inclusion in Cebu said the growth posted in the month is a positive development.

“This proves that the export sector remains competitive despite global difficulties that we have seen in the global economy,” he said.

As for the local currency’s appreciation, he said the BSP would always have to stick to the base policy which is to allow market forces to determine the rate with scope for official intervention to smoothen sharp fluctuations.

Based on currency volatility related to our peers, he said “you will notice that we are on the middle of the range of currencies.”

“We have basically maintained our export competitiveness,” he said further.

The local currency closed at a four-year high of 41.615 per dollar on Monday, the strongest since April 2008.