Exports sustain growth at 12.4% in July
According to the Institute for Development and Econometric Analysis, Inc. latest NewsBriefs, following a double-digit growth of 21.3percent in June 2013, Philippine merchandise exports continue to soar at $5.5 billion in July 2014, 12.4percent higher from the $4.9 billion a year earlier.
Excluding chemicals, nine out of the country’s top ten exports posted an increase in earnings from July 2013 with machinery and transport equipment leading the surge by growing 193.5percent. Electronic products remain as the country’s top export commodity, raking in $2.09 billion.
Manufactured goods and agro-based products, comprising nearly 90percent of exports, rose 15.9percent and 20.7percent respectively.
Exports racked in a total of $35.1 billion from January to July 2014, an 8.5percent increase in earnings from the same period in 2013.
According to the National Economic Development Authority, the Philippines ranked second next to China in terms of exports growth among East and Southeast Asian economies in July 2014. While basking in the favorable performance of the export sector, Director-General Arsenio Balisacan cautions against the unstable power supply in the country that immediately needs to be addressed. Japan continues to be the country’s top export destination in July 2014.
Likewise per same published report, the Philippine Statistics Authority reports that unemployment rate went down to 6.7percent in July 2014 from 7.3percent in July 2013, which translates to 1.06 million jobs created in the period. Furthermore, the country’s persistent underemployment rate finally gives in, falling to 18.3percent in July 2014 from 19.2percent a year earlier. The July 2014 survey excludes Yolanda-hit Leyte.
Furthermore, in the face of elevated inflation, the Monetary Board decided last Thursday to raise the Bangko Sentral ng Pilipinas’ key policy rates by 25 basis points to 4 for the overnight borrowing and 6percent for the overnight lending. The interest rates on special deposit accounts were also hiked leaving only the reserve requirement ratio untouched.
The inflation targets for 2014 and 2015 were assessed to be dangerously at risk.
According to IDEA, in the first quarter of 2014, the non-performing loans of rural and cooperative banks amounted to P18.11 billion, a rise from the P17.25 billion a year earlier. The NPL ratio remained stable at 13.14percent, however, as the banks’ total loan portfolio also increased. The loans extended by rural and cooperative banks constitute only 2.75percent of the whole banking systems’ loan portfolio.
Lastly it was reported that, foreign portfolio investments in August 2014 posted a net inflow of $489 million, a surge from the $322 million a month earlier and a complete reversal of the $442 million net outflow a year ago. The top five sources of the investments were the United Kingdom, Singapore, the United States, Malaysia, and Hong Kong, according to the researchers of IDEA.
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