Uninspiring Export and FDI Data
For the second consecutive month exports continued to show positive but lackluster growth, inching up by 2.3% in July. Electronic products, the country’s top export, saw its first positive yoy growth this year at 11.2 percent; however, the boost was due to base effect as electronics shipments posted a double-digit contraction of 24.6% a year ago. Month-on-month, electronics declined by 5.7 percent. Moreover, non-electronics export fell 2.7% in July from a 10% growth in June. Overall, exports decreased 3% year-to-date, far from the government's 10% target growth rate for the year, which we think is not attainable notwithstanding signs of recovery in developed economies.Meanwhile, the BSP released data showing June FDI reversing to a net outflow of $61 million. While cumulative first half FDI inflows climbed 11% yoy to $2.2 billion, about 70% of the BSP's $3.2 billion FDI inflows forecast for the year, this is still comparatively anemic next to Indonesia's $14 billion and Vietnam's $10.5 billion.