19.7% export growth in May highest since 2011 — Neda

1 2 3 4 5 (0 votes)The National Economic and Development Authority (Neda) said exports growth of 19.7 percent in May this year was the highest year-on-year growth since January 2011.

The Neda made this statement after the National Statistics Office (NSO) released preliminary report that export earnings in May 2012 reached $4.9 billion, compared to $4.1 billion in May 2011.

“For the first five months of 2012, export earnings already rose by 8.4 percent to $22.4 billion from $20.7 billion in the same period in 2011,” said Socioeconomic Planning Secretary Arsenio Balisacan.

Citing NSO figures, Balisacan said exports in May surged on account of higher overseas sales of manufactures (28.9 percent) and forest products (14.8 percent).

On the other hand, he said lower export receipts from petroleum (-81.7 percent), minerals (-16.6 percent), and total agro-based products (-2.7 percent) partially moderated the export growth in May 2012.

Meanwhile, the NSO said electronics exports amounted to only $1.87 billion in May 2012 compared to $1.89 billion in the same month last year.

“On a positive note, there still appears to be good prospects for growth in the electronics sector, as indicated by improving book-to-bill ratio in Japan and a parity of above 1.0 in the US. In fact, the book-to-bill ratio in US has been above 1.0 for four consecutive months, reaching 1.05 in May 2012,” the Cabinet official said.

A book-to-bill ratio or parity of above 1.0 indicates an upbeat market, as demand or bookings outpace supply or billings. On the other hand, a parity of less than 1.0 suggests weak demand.

“Industry sources have said that revenues coming from the semiconductor sector will be sustained by strong demand for consumer-oriented products, such as mobile phones and media tablets, as well as the entry of new players in the electronics industry this year,” said Balisacan.

Under manufactures, Balisacan said higher earnings were noted under machinery and transport equipment (168.7 percent), miscellaneous manufactures (965.5 percent), other electronics (147.3 percent), iron and steel (329.0 percent), processed food and beverages (26.2 percent), furniture and fixtures (67.0 percent), baby carriage and toys (22.7 percent), travel goods and handbags (193.0 percent), and textile products (8.7 percent).

“The increase in overseas sales of these commodities more than offset the contractions observed in chemicals (-13.1 percent), wood manufactures (-11.9 percent), garments (-5.9 percent), non-metallic minerals (-22.7 percent), and electronic products (-0.7 percent),” said Balisacan, who is also Neda director general.

He said aside from manufactures, outbound shipments in May 2012 were also supported by forest products, which registered a 14.8-percent growth, even as petroleum, minerals, and total agro-based products declined by 81.7 percent, 16.6 percent and 2.7 percent, respectively.
“While some of these sectors experienced lower shipments in terms of volume, their contractions can also be partly attributed to declining prices in the international market. In May 2011, the average international price of crude oil fell (-3.7 percent). In the minerals sector, the price of copper in the global market fell (-11.2 percent) on concerns of benign global demand and rising inventories. As to agro-based products, there were steep drops in the international prices of coconut oil (-44.9 percent) and sugar (-5.2 percent),” said Balisacan.

He said the steep drop in sugar prices came after India said it will allow exports of raw sugar, and that exports of coconut oil were adversely affected even if volume improved by 27.2 percent.

The NSO also reported that Japan was the top destination of the Philippine exports in May 2012, accounting for 23.0 percent of total export receipts. The value of merchandise exports to Japan, mainly of semiconductors, wood manufactures, and electronic equipment and parts, reached $1.1 billion in May 2012 or 81.5 percent higher compared to $624.3 million in May 2011.

Japan was followed by the United States, with a 14.5-percent share, Thailand (11.5 percent), China (11.4 percent) and Hong Kong (7.0 percent).

According to the NSO, total export revenues from China, Hong Kong and Taiwan accounted for 21.2 percent of the country’s total merchandise exports.

Meanwhile, shipments to Asean and European Union made up 22.5 percent and 9.8 percent, respectively. –Daily Tribune