The surprise robust growth in merchandise exports and imports at the start of the second quarter augured well for rosier Philippine economic prospects, according to Deutsche Bank Research.
In a recent report, the German bank's research arm noted that the 26.4 percent year-on-year climb in April export sales was the fastest since October 2022 and exceeded the market consensus of 13 percent growth.
"Electronics exports accounted for the bulk (70 percent) of that growth amid the broader global recovery in the electronics cycle," Deutsche Bank Research explained.
The 12.6 percent hike in imports last April was also "broad-based and against our expectations of a milder but continued contraction from March," it said. The consensus was a 2.5 percent decline in April imports.
These external goods trade increases posted in April reversed year-on-year drops last March.
"Taken together, this could signal that the Philippines' economic activity and domestic demand conditions are likely picking up, but it remains to be seen whether the April figures are a blip or a sustained pickup," Deutsche Bank Research said.
Also, Moody's Analytics said April's foreign trade gains coincided with strong industrial production among local factories.
"The key electronic products category, which accounted for 57 percent of total export value, supported exports. The Philippines is a regional hub for the testing and final assembly of semiconductors, so a double-digit jump in shipments for semiconductors and electronic data processing was worth celebrating," Moody's Analytics noted.
While Hong Kong was the top export destination in April, with nearly 70 percent year-on-year growth posted that month, "the spluttering economic recovery in China continued to disappoint the Philippines, with a back-to-back decline in shipments for April on a year-earlier basis," it said.