MANILA, Philippines – Singapore-based DBS said yesterday the weak export growth in April will have a limited impact on the country’s gross domestic product (GDP) growth.
“Any impact on overall GDP growth is likely to be limited,” DBS said in a research note.
“The main support for the economy has come from domestic demand, which remains robust and likely to continue supporting overall GDP growth above the six percent mark for at least the next couple of years,” the bank said.
The country’s merchandise exports grew by only 0.8 percent to $4.544 billion in April from a revised $4.51 billion a year ago.
The Philippine Statistics Authority attributed the slower growth to the contraction in the shipments of electronic products, the country’s top export commodity.
This brought the four-month tally to $18.859 billion, up 5.4 percent from the same period last year.
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The government expects merchandise exports to grow by six percent this year over 2013 levels. Philippine economic growth, meanwhile, is forecast to settle between 6.5 percent and 7.5 percent.
Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. earlier said economic growth may settle at a “more moderate pace” following the 7.2 percent expansion recorded last year.
“On broad expectations, we think that the authorities would be very comfortable even if GDP growth were to come in the lower half of the six to seven percent range,” DBS said.
The bank expects the economy growing 6.3 percent this year.
Philippine economic growth came at a lower-than-expected 5.7 percent in the first quarter.
