The National Economic and Development Authority (NEDA) said that the country’s exports are beginning to contribute more to growth, saying that for the third quarter alone, the 5.3 percent GDP growth was fueled by the 125.7 percent expansion in net exports, or the difference between a country’s total value of exports and total value of imports. Net exports for the quarter contributed 2.1 percentage points to three-month GDP figure.
Growth largely came from exports of manufactured items, metals and forest products.
NEDA director general Arsenio Balisacan said in a recent briefing that the contribution of the external sector of the economy in the GDP [gross domestic product]is much higher this year than the previous years.
Balisacan added the agency is optimistic that exports will end the year with double-digit expansion as the latest 10-month figure has already exceeded the government’s full-year target.
“For this year, exports fared better than we had expected,” Balisacan, said.
Data from the Philippine Statistical Authority showed that cumulative merchandise exports from January to October registered a 9.2 percent increase to $51.769 billion in 2014 from $47.413 billion in same period last year.
The 9.2 percent exports growth in the 10-month period has surpassed the 6-percent target of the inter-agency Development Budget Coordination Committee (DBCC) for full-year 2014.
The NEDA attributed the exports expansion to the year-on-year growths in manufactures, mineral products, total agro-based, and forest products.
Sharing the government’s optimistic view is Singapore bank DBS which said that overall export growth in 2014 is likely to be near 10 percent.
“Exports from the manufacturing sector have had a pretty good run this year, with growth in this sector likely to come in a modest 7 percent,” the bank said in a research note.
“Note that production numbers are still ticking up higher as we approach the year-end. The manufacturing sector is likely to remain as one of the fastest growing sectors in the economy,” it added.