MANILA, Philippines - Growth in the country’s merchandise exports likely decelerated in August but strong demand for electronics products would have kept it at double-digit rates, UK-based investment bank Barclays said in a report.
The bank, in its latest Emerging Markets Weekly, forecasts outbound shipments growing 11 percent in August from the same period a year ago.
“Strong momentum in electronics sector will keep exports elevated,” Barclays said.
Official August exports data will be released by the Philippine Statistics Authority on Friday, Oct. 10.
Merchandise exports rose 12.4 percent to $5.461 billion in July from $4.859 billion in the same month last year, government data showed.
Electronics products, the country’s top export, increased 2.7 percent to $2.09 billion in July from $2.035 billion a year ago.
The PSA said other goods that drove growth in July were machinery and transport equipment, other mineral products, ignition wiring set and other wiring sets used in vehicles, aircraft and ships, articles of apparel and clothing accessories, coconut oil, woodcraft and furniture, and other manufactures.
During the month, Philippine exports primarily went to Japan, which cornered 22.2 percent of all shipments. The United States ranked second, followed by China, Hong Kong and Singapore.
Socioeconomic Planning Secretary Arsenio Balisacan earlier said the pickup in exports reflects the improving global conditions as US, China and Germany show signs of recovery from previous financial woes.
Balisacan added there are rosy prospects for the country’s exports of electronics, garments, intermediate goods, and agriculture products for the rest of the year.
In the seven months to July, exports went up 8.5 percent to $35.129 billion from $32.374 billion in the same period last year.
The government hopes to expand merchandise exports six percent this year over the $56.7 billion recorded in 2013.