‘Unstable’ PHL power supply seen to cut H2 export growth

The National Economic and Development Authority (Neda) warned that if the instability of the country’s power supply will continue, the Philippines’s export growth may be affected for the rest of 2014.

The country’s merchandise exports growth already showed a slower growth of 12.4 percent at the start of the third quarter.

This was significantly slower than the 21.3-percent growth posted in June 2014. However, it was still faster than the 2.8-percent growth posted in July last year.

“The expected tightness in the supply of power in the coming months could disrupt industrial production, hurting exports. Additional cost of utilities may also hamper production volumes. This should also be given priority by the government to support the country’s export targets,” Socioeconomic Planning Secretary and Neda Director General Arsenio M. Balisacan said.

Nonetheless, with the latest data, Balisacan said the country had the second highest export growth among the major economies in East and Southeast Asia in July, next only to China.

Data released by the Philippine Statistics Authority (PSA) on Wednesday showed that the country’s total merchandise exports amounted to $5.461 billion in July 2014, higher than the $4.859-billion recorded value in July of 2013.

Total merchandise exports for January to July 2014 posted a 8.5- percent increase to $35.129 billion in 2014 from $32.374 billion in same period of 2013.

“The favorable performance of the manufactures sector largely reflected the upbeat global manufacturing activity which remains elevated,” Balisacan said.

“Our country’s robust exports growth reflects global trend, as we see major economies such as the US, China and Germany continuously showing signs of bouncing back from economic shocks. This suggests that global demand is picking up pace and that our exports sector is slowly gaining momentum,” he added.

PSA data showed that total receipts from the top 10 exports reached $4.558 billion, or 83.5 percent of the total exports.

Electronic products, meanwhile, remained the country’s top export and accounted for 38.3 percent of the country’s merchandise export revenues.

The export of electronic products amounted to $2.09 billion in July 2014, a 2.7-percent increase from $2.035 billion registered in July 2013.

By major groups of electronic products, components/devices (Semiconductors), comprised 26.5 percent of the total exports and shared the biggest with export earnings worth $1.450 billion and rose by 12 percent from $1.294 billion recorded in July 2013.

The country’s total export receipts from the country’s top 10 markets destinations for the month of July 2014 was valued at $4.682 billion, or 85.7 percent of the total.

The Philippines’s top three export markets were Japan, which accounted for 22.2 percent of total exports, followed by the United States with 14.7 percent, and the People’s Republic of China, 12.8 percent.

Exports to Japan, including Okinawa, amounted to $1.212 billion, a 24.4-percent increase from $974.80-million recorded value in same month a year ago.

Shipments to the United States, including Alaska and Hawaii, amounted to $801.60 million in July 2014, a 28.1-percent growth from $625.88 million in same month last year.

The country’s export earnings from China reached $700.45 million, a 1.7-percent increase from $688.41 million a year ago.

The PSA also said that in terms of region, the Philippines still had the greatest export trade from countries in East Asia which accounted for 54.3 percent of the country’s export earnings in July 2014.

Earnings from exports to East Asia grew 19.1 percent to $2.963 billion in July 2014 from $2.488 billion in July 2013.

Commodities exported to the Asean, on the other hand, accounted for 13.8 percent of the total exports in July 2014 and reached $755.38 million.

This, however, registered a decrease of 17.2 percent from $912.25 million posted in same month a year ago.

Exports to European Union member countries, with 9.8-percent share to total merchandise exports, amounted to $537.51 million, a 8.6- percent growth from $337.99 million recorded in July 2013. -Cai U. Ordinario, Businessmirror