Cebu, PHILIPPINES, Nov 12, 2014 – After posting region leading export growth of 15.7% in September, the Philippines NEDA (National Economic and Development Agency) reported export growth of just 2.9% for the month of October, the slowest growth since April.
Vietnam led the region with a 12.5% increase in exports; followed by China, 11.6%; Thailand, 4%; the Republic of Korea, 2.3%; and Taiwan, 0.7%.
Negative growth rates were recorded in Singapore, -9.2%; Malaysia, -5.8%; Indonesia, -2.2%; Hong Kong, -1.6%; and Japan, -0.8%.
This is largely due to a softening in our major trading partners, although recent data on GDP growth also pointed to a lack of investment in port infrastructure hampering the trading capacity of Philippine importers and exporters. Japan, the Philippine’s largest trading partner, accounting for 21.7% of export revenues, experienced a noticeable drop in demand following the release shocking GDP growth figures, which showed Japan was in a clear recession.
Local exporters, however, remain upbeat, as demand is expected to increase during the holiday period, and export growth is still on track to exceed the DTI (Department of Trade and Industry) target of 8% (at the moment, 2014 full year exports have exceeded 2013 exports by 9.9%).