Philippine export growth suffers stark slowdown in January

Philippine export growth suffers stark slowdown in January

MANILA, Philippines (AP): Lower demand for electronics products caused export growth in the Philippines to slow sharply in January to 4.8 percent from 16.7 percent in December, the statistics office said Thursday.

January exports totaled US$2.705 billion, up from US$2.581 billion a year earlier, the government said.

January's slower growth was due to a drop in exports of electronics and components, which contracted 7.9 percent to $1.365 billion after expanding 12 percent in December and 16 percent in November.

The weakness in this key sector, which accounts for close to a third of total exports, resulted from a sharp drop in shipments of semiconductors.

The head of an industry body representing the electronics sector said it was hard to pinpoint why exports fell in January.

"But the prospects remain bright," said Ernie Santiago, executive director of the Semiconductors and Electronics Industries of the Philippines Inc.

He added that the sector's exports are set to rise up to 20 percent this year.

Economists agreed that January's weak exports do not signal a trend and were largely the result of slow seasonal demand. "January is hardly indicative," said Helen Alvarez, research director of All AsiaCapital and Trust Corp.

Alvarez noted that orders from major markets for semiconductors are traditionally strongest in the second quarter and that demand was particularly buoyant last year because of Y2K computer-related needs.

Economists forecast export growth of around 15 percent this year, down from 18.8 percent in 1999, on expectations that demand from major markets will moderate somewhat.