Philippines: Exports growth notably decelerates in June
Exports ticked up by an annual rate of 0.8%, which represented a significant deceleration from May’s 13.7% expansion. June’s result reflected sharp decelerations in the growth of manufactured products and agro-based products.
Exports of manufactured products remained flat in June compared to the same month of the last year, well below the 8.5% expansion recorded in May.
Exports of electronic products, which are classified as a sub-category of manufactured goods and account for the largest share of total export revenues, expanded 4.4% in June, significantly below May’s 17.8%.
However, growth in exports of electronic products was offset by sharp contractions in exports of garments and wood manufactures. Furthermore, growth in exports of agro-based products backed down from 53.4% in May to a paltry 0.3% in June.
In June, imports contracted 2.5%, which strongly contrasted the 16.6% year-on-year contraction recorded in May and marked the lowest result in over two years.
The trade balance in June recorded a $2.1 billion deficit, narrowing both from May’s $2.8 billion deficit and the $2.4 billion deficit recorded in June 2016.
FocusEconomics Consensus Forecast panelists see exports expanding 3.7% in 2017 and 8.1% in 2018. Panelists expect a trade deficit of $23.3 billion in 2017 and see it widening to $25.7 billion in 2018.