Exports surged 21.3% in June

According to the Institute for Development and Econometric Analysis, Inc. latest NewsBriefs, in June 2014, earnings from merchandise exports hit a high of $5.444 billion, outperforming other countries in East and Southeast Asia. Cumulatively, export earnings for the first half of 2014 climbed to $29.809 billion, an 8.3% increase from the same period in 2013.

Electronic products dominate the country’s top exports, raking in $2.221 billion, two-thirds of which was accounted for by semiconductors. Eight out of the top ten exports in June 2014 posted positive increases from June 2013; woodcrafts and furniture slid 9.9%, while cathodes and refined copper were not exported a year earlier.

By commodity group, manufactured goods comprised 79% of total export earnings. Petroleum products, meanwhile, severely tumbled, contributing merely 0.001%.

According to Arsenio Balisacan of NEDA, he states, ‘This is the highest level since the economy started posting a continuous positive growth in the same period last year.’ Furthermore, he says that the gains are broad-based and is indicative of a strong global recovery. Aside from the robust performance of semiconductors and forest products, banana and mango exports are also set to access the markets of Australia and the US. Japan continues to be the top destination of Philippine exports.

However per same published report, bad debts held by universal and commercial banks declined to P96.07 billion as of May 2014, 5.22% lower from a year ago. The industry’s non-performing loans ratio also decreased to 2.17% from 2.75% during the same period in 2013, even as banks’ total loan portfolio expanded by 20%. The Bangko Sentral ng Pilipina,, however, remains watchful as the level of NPL has been on the rise, unlike the trend in previous years.

Likewise per IDEA, following months of missed targets, the Bureau of Internal Revenue is back on track as it slightly exceeds its target collections in July 2014 by 0.05%. The Bureau collected P119.94 billion, up by nearly 20% from the same period in 2013. The year-todate tally now stands at P763.148 billion, up by 9.99% y-o-y. For the whole year of 2014, the agency is mandated to rake in P1.456 trillion.

On the other hand, cash remittances coursed through banks by Overseas Filipinos topped at $2.05 billion in June 2014, up 5.9% from a year earlier. With this fresh peak in the volume of remittances in 2014, the first half tally already amounts to $11.422 billion, 5.8% higher compared to the same period in 2013. Remittances comprise around 10% of the country’s gross domestic product.

Lastly according to the researchers of IDEA, it was reported that Foreign portfolio investments entered into its fourth month streak of net inflows with $320.67 million in July 2014. According to the BSP, the US, UK, Singapore, Malaysia, and Germany were the top sources of portfolio flows. [email protected].