Exports likely up 3.5% in July

MANILA, Philippines - Merchandise exports are expected to have grown 3.5 percent in July from a year ago, amid sustained demand from abroad.

“Exports should break the run of consecutive month-on-month declines, given strengthening external demand,” UK-based Barclays said in a research note.

Shipments expanded 4.1 percent to $4.49 billion in June from a year-ago level, a reversal of two consecutive months of decline.

In the first half of the year, exports declined 4.4 percent. The government expects exports to expand by 10 percent this year.

In a report on Philippine export performance, Barclays said shipments are expected to continue improving given better prospects in markets abroad.

“Looking ahead, we expect Philippines exports to continue to improve gradually, consistent with better external demand indicators such as ISM (Institute for Supply Management) new orders and the global semiconductor book to bill ratio,” Barclays said.

The growth in shipments in June were driven by higher earnings from agro-based products, mineral products, and petroleum. Japan, the United States, China, Singapore, and Hong Kong were the top destinations for the country’s exports.

The National Economic and Development Authority in July said it may cut this year’s growth targets for exports and imports.

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