Exports climb by a tad in March — NSO

Merchandise exports inched up in March as non-traditional shipments rose, reversing declines posted in the first two months of the year, the National Statistics Office (NSO) reported Friday. In a statement, NSO said export receipts were a tad higher—up 0.1 percent to $4.33 billion in March from $4.32 billion last year.  “The positive growth was supported by six major commodities out of the 10 top commodities for the month,” the Statistics Office said. The agency was referring to other mineral products (+119.6 percent), metal components (+73.4 percent), woodcrafts and furniture (+60 percent), coconut oil (+43 percent), ignition wiring set and other wiring sets used in vehicles, aircraft and ships (+36.2 percent), and "other manufactures" (+79.1 percent). However, shipments in electronics—the country's top export product—fell 22.3 percent to $1.76 billion in March. The March exports helped arrest the first quarter outbound shipments figure, which contracted by 6.2 percent to $12.08 billion. “The opening up of new markets combined with the uptick in demand from our key markets resulted in robust performance of our agro-based products, particularly for coconut oil, bananas, copra meal/cake fish products, centrifugal and refined sugar, among others,” Socioeconomic Planning Secretary Arsenio Balisacan said in a separate statement. Bank of the Philippine Islands economist Emilio Neri Jr. said the figures showed that exports would weigh on overall output. “In the first quarter at least, the sector is going to be more of a drag to growth,” he said. This means the country will have to rely on “more aggressive government spending and domestic capital formation” to sustain growth, Neri said. He noted that policymakers have been “exerting a lot of effort” along this line, keeping monetary policy on an expansionary path and ramping up fiscal performance. In an interview with reporters last month, Bangko Sentral Deputy Governor Diwa Guinigundo said there was a good chance that exports would grow at least 8 percent this year should the global recovery stay on track. The economy likely grew between 6 to 7 percent in the first quarter, said  Balisacan. Citing the presence of positive indicators, Neri said the challenge tended to be more about growing exports and noted the sector was able to expand in the second quarter of 2012.  “They have to pace themselves, it's gonna be a steeper climb,” the economist noted.  Japan was the country’s top buyer of Philippine products in March and accounted for 18.5 percent of the total receipts. USA was the second largest export destination at 14.4-percent, followed by the People’s Republic of China at 13.2 percent, Hong Kong at 8.5 percent, and Republic of Korea at 7.4 percent. — VS, GMA News