Philippines’ economic outlook to remain positive despite negative export growth in February

In February, Philippines recorded a -4.5% y/y growth in exports. However, negative growth in the overall export is not much of a concern, according to DBS Bank. In recent years, domestic demand has majorly contributed to the economic growth. The outlook of Philippines’ economy will continue to be positive as long as investment and private consumption growth continue to be strong, noted DBS Bank.

Moreover, electronics exports grew modestly by 8.1% y/y in February, in spite of the overall negative growth in export. The country’s manufacturing sector is a vital structural driver of the economy. Meanwhile, February’s remittances print is expected to be at around USD 2.2 billion. Total remittances on an annual basis are equal to around 40% of annual exports. The Philippines' current account surplus is expected to persist, added DBS Bank.