Philippines: Reconciling Short-Circuiting Electronic Exports

The situation for Philippine exports is particularly dire, with the value of exports falling by 20.7% y/y in December 2011 after reaching a two-year low in September amid persistent weakness in external demand for the country’s electronic goods (Figure 1). Export growth contracted for its eight consecutive month, while electronic exports contracted for its eleven […]

Reliance on Commodity Exports and Elevated NZD Highlight Industry Headwinds

The Bloomberg Correlation-Weighted Index shows that the NZD has appreciated by 3.56% over the past year, sustained by New Zealand’s economy outperforming many other advanced economies. The rising currency is providing benefits to some sectors to the economy, while posing challenges to other sectors. The high NZD is having the most effect pushing agricultural commodity […]

Will the Rugby World Cup Help NZ Sustain its Growth Momentum?

Tourism is integral to New Zealand’s economy in the production of goods and services and the creation of employment opportunities. With a yearly average of 2.4 million visitor arrivals, the tourism industry is the country’s biggest export earner. In the year ended March 2010, international tourist expenditures comprised NZ$9.5 billion (18.2% of total export earnings) […]

Continued Reliance on Remittances Stress the Need for Phillipines to Focus on Domestic Job Creation

In 2010, remittances accounted for 10% of GDP totaling a record high US$18.8 billion (+8.2% y/y). Remittances provide an integral crutch for domestic consumption (77% of GDP), since they tend to be used to fund education, health-care, and household expenses for family members. Strong consumer spending helped the economy grow 7.3% y/y in 2010 and […]

Will Emerging Asia Continue to Fuel New Zealand’s Recovery?

Record high commodity prices are supporting the economy as it recovers from a swath of deadly earthquakes to strike New Zealand in 80 years. Even while New Zealand’s currency has appreciated around 18% against the USD this year, emerging market (EM) demand for commodities (logs, dairy, and meat) continues to soar, which is benefiting New […]

Broader Network of Trade Links Key to Philippine Growth and Stability

The Aquino administration is seeking to expand the country’s trade links with emerging markets and developed economies to enhance export performance, encourage FDI, and sustain growth. In 2011, RGE is forecasting GDP to expand 5.2% in our outlook as President Aquino’s Public Private Partnership program, aimed at improving the country’s infrastructure, galvanizes capex in Q4 […]

What Is Sparking New Zealand’s Housing Revival?

Migration and housing shortages will add pressures to housing supply that will outpace demand, leading to a rise in New Zealand property prices. According to, the average asking price for house rose to NZ$429,000 in April, its highest level in four years and just surpassing the previous market high point in October 2007. Meanwhile in March 2011, the REINZ median house price reached a record high of NZ$365,000 from NZ$350,000 in February. The housing shortages brought about by the Christchurch earthquakes along with low numbers of houses built in recent years affords a platform for a housing market revival. While higher priced properties in Auckland saw increased activity and prices, Christchurch and outer areas of large cities experienced flat to falling prices.

Philippines’ Electronics and Automotive Industries Feel the Aftershocks from the Tohoku Earthquake

The Philippines’ export recovery barreled on through 2010 on the back of strong demand for electronics, helping to shrink the trade deficit to US$3.3 billion. Through 2010, electronics remained the top import and export by value, comprising 34.6% of total imports and 59.89% of total exports. The devastating 8.9 magnitude earthquake and tsunami that struck Northeastern Japan […]