HSBC: PHL merchandise exports to rise 5%, bucking weak global demand

Merchandise exports made in the Philippines may manage to eke out 5 percent growth this year despite weak demand overseas, according to the global bank that had predicted the country will be the world’s 16th biggest economy by 2050.   HongKong and Shanghai Banking Corp. said, through its senior vice president Junie Velasco, that the Philippines’ close economic relations with its East Asian neighbors account for the optimism in its exports forecast.   “Exports will continue to be challenged with electronics, the top export commodity likely to remain affected by slowdown in China, the recession in Europe, and the weaker growth in US,” he added.   Last year, exports shrunk 6.6 percent to $48.04 billion from $51.43 billion in 2010.   Taking the long view of the HSBC Global Connections trade forecast, Velasco said total trade would rise above the world average to 15.82 percent by 2016 and 55.54 percent by 2026.   The bank projects exports to Japan expanding by 5.77 percent yearly, with the US close behind at 5.38 percent, but exports to China will outpace them all at 7.54 percent.   Veloso said the country is becoming a strong supplier of components to the global supply chain, particularly in consumer electronics and automotive or office equipment sectors. — Rouchelle Dinglasan/ELR, GMA News