BSP sees exports rising 12% and imports by 18% this year

MANILA, Philippines – Monetary authorities see merchandise exports and imports  accelerating at a faster pace this year after major markets led by the United States and  Japan were battered by the global economic crisis last year.

BSP Governor Amando M. Tetangco Jr. said that the country’s export earnings would grow by 12 percent instead of only seven percent while imports would increase by 18 percent instead of 13 percent this year.

“We expect exports growing by 12 percent from the earlier projected growth of seven  percent and in tandem with this, imports rising at a faster pace of 18 percent from the earlier expansion of 13 percent,” Tetangco stressed.

The revised figures would have to be approved by the Cabinet-level Development Budget Coordination Committee (DBCC).

Latest data released by the National Statistics Office (NSO) showed that the country’s  merchandise exports surged by 42.4 percent to $7.146 billion in the first two months of  the year from $5.017 billion in the same period last year due to the strong recovery of the shipments of locally-made electronic products.

On the other hand, imports jumped by 29.4 percent to $8.19 billion in January and February from $6.329 billion in  the same period last year.

Increased economic activity have resulted in the importation of more capital equipment and raw materials for production resulting to a higher volume of Philippine-made  products.

Economic managers expect the country’s domestic output as measured by the gross domestic product (GDP) expanding between 2.6 percent and 3.6 percent this year after escaping recession last year with a 0.9 percent GDP expansion.

Due to the global financial crisis that struck major export markets, the country’s exports fell by 21.9 percent to $49.078 billion last year from $38.335 billion in 2008.

On the other hand, total imports plunged by 24.2 percent to $43.004 billion from $56.746 billion as economic activity slowed down due to the worldwide economic crisis. –Lawrence Agcaoili (The Philippine Star)