The Philippines' merchandise exports rose by 11.8% year on year in January, down from an expansion of 26.5% in December 2010, according to the National Statistics Office. Exports grew at a record pace in 2010, expanding by 33.8%, amid a recovery from the slump in global trade in 2009, when exports contracted by 21.7%. However, the pace of export growth had begun to slow in fourth quarter of 2010. Slower growth in exports of electronic goods-the Philippines' leading export, accounting for around 60% of total earnings-explains the recent slowdown in overall exports. In January exports of electronic goods rose by only 5.3%, down from growth of 19.4% in December and 40.1% in 2010 as a whole. Excluding electronic goods, exports grew by 20.2% in January, representing a much more gradual slowdown from growth in 2010 of 25%. This is explained by the strong rates of growth recorded in exports of non-electronic goods in January, notably of machinery and transport equipment (which grew by 27.2%), coconut products (53.9%), mineral products (40.3%) and garments (29.2%). Meanwhile, imports continued to record strong year-on-year growth in January, rising by 23.9%. Imports of electronic products were up by 37.6%, suggesting that the electronics industry remains relatively strong, despite the slower growth in exports. Imports of crude petroleum rose by 32.7% in January. As import growth vastly exceeded that of exports, the merchandise trade deficit widened sharply in January, to US$1.3bn-the biggest monthly deficit since July 2008.