High demand for chips pushes exports up

WITH the Covid-19 vaccinations in full swing globally, the Philippine merchandise exports in March 2021 rebounded strongly, jumping 31.6 percent from the same month last year.

The promising performance was attributed to the global economic recovery arising from the ongoing Covid-19 vaccinations.

“Philippine merchandise exports in March set an encouraging pace by posting a hefty 31.6 percent advance versus the 1.5 percent decline in February this year,” Philippine Exporters Confederation in Cebu executive director Fred Escalona said.

March 2021 exports were valued at US$6.68 billion.

Electronics, which make up 61 percent of all exports, grew by 25 percent compared to March last year.

Department of Trade and Industry (DTI) Secretary Ramon Lopez said the growth was because of the high chip demand due to upgrades of information technology (IT) systems, new smartphones, auto demand and automation.

However, Escalona warned it might not be enough to offset the expected drop in exports for the first quarter.

“We need to be cautious though, as we see that electronics and its subcomponents are the main contributors to the sharp March increase,” he said.

Tech stocks in the New York Stock Exchange are lifting the indices to new all-time highs, closing on Friday, May 7, 2021 at 34,777.76 or almost seven percent on its previous close on Thursday, May 6, Escalona said.

“With the further reopening of the world’s economies, the increasing volume of imports and the anticipated success of various vaccination programs, we may say that a strong rebound is in the works by the third quarter of this year,” he said.

Factory production

(JOB)

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