Uninspiring Export and FDI Data

PHILIPPINES - In Brief 10 Sep 2013 by Romeo Bernardo

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.  

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