MANILA – Singapore-based investment bank, DBS said that the country’s merchandise exports growth may start decelerating in the last quarter of 2014.
DBS said that the deceleration will be due to the slowdown in imports which affects the outbound shipments of the country.
“Expect to see some moderation in export growth in the fourth quarter. Total 2014 export growth may now come in lower than our earlier estimate of nine percent,” DBS said in a research note.
“Yet, even at the current pace, net exports are likely to contribute about one-third of overall GDP (gross domestic product) growth this year, which we still estimate to be circa 6.4 percent,” the bank added.
A latest government data indicated that exports increased by 15.7 percent to $5.849 billion in September from $5.056 billion in the same month last year.
The growth rate which was above expectations made possible the third quarter expansion at 12.9 percent over year-ago levels, according to DBS.
Meanwhile, the Philippine Statistics Authority said the strong demand for electronic products which rose 13.6 percent to $2.442 billion in September has driven the merchandise exports growth.