Philippine exports dropped for the 12th straight month in March on weak demand in key markets such as the United States and China. Shipments fell 15.1 percent from a year earlier to $4.61 billion, the biggest drop in six months, with seven of the country's top 10 exports posting declines, the statistics agency said on Wednesday. However, a bump-up in government spending particularly on infrastructure projects ahead of last weekend's presidential election and still robust domestic demand should offset any weakness in trade, economists said.
"The latest exports numbers reflect the weak economic outlook for the world economy," said Nicholas Antonio Mapa, economist at Bank of the Philippine Islands. "But the weakness in the trade sector will be offset by some compensation in government spending and the solid consumption story of the Philippines." Electronics exports, which accounted for 51.1 percent of total exports in March, rose a mere 1 percent, with semiconductors, which usually have the biggest share among electronics products, down 0.4 percent.
Total exports in the first quarter were down 8.4 percent from a year earlier to $13.1 billion. Mapa expects the Philippine economy grew 6.2 or 6.3 percent in the first quarter from a year ago. The government will release the GDP data on May 19. Exports to top destination Japan dropped 13.6 percent, while shipments to the United States, the second biggest market, were down 23.6 percent. Exports to the third biggest market Hong Kong rose 11.6 percent, while shipments to China, the fourth biggest market, fell 23.4 percent.
After rising 7.9 percent in 2015, shipments of electronic products this year may rise just 2 percent to 5 percent, reflecting weak demand from key market China, industry group Semiconductor and Electronics Industries in the Philippines Inc said.
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