The export sector’s growth target this year of 10 percent is slowly getting out of reach, according to the Philippine Exporters Confederation Inc.
Philexport said merchandise exports should grow by a hefty 16 percent in the second half to hit the yearend target growth of 10 percent.
“Exports are improving, although still down. If you notice that from month to month, the [decline] is slower, especially for the electronics sector, so our hope is in the electronics sector posting a sizeable positive growth,” said Philexport president Sergio R. Ortiz-Luis Jr.
“We’re still confident that we [export industry] will be posting a positive growth. We just don’t know if we’ll reach target. The target is getting harder and harder to meet,” he added.
It was earlier reported that the country’s exports fell by 0.8 percent in May to $4.89 billion, from $4.93 billion in the same month last year.
For the first five months of the year, total merchandise exports similarly declined by 6 percent to $21.09 billion, from $22.45 billion in the same period a year ago.
Ortiz-Luis pointed out that bright spots were emerging in the exports sector, notably the garments industry.
Based on his discussions, garments players have received inquiries for sizeable orders from the United States and other markets. Unfortunately, there are not enough garments companies in the Philippines to serve the demand.
Ortiz-Luis admitted that the garments sector alone would not be able to pull up the total merchandise exports.
This industry however, will still make considerable contributions.
For 2013, the sector is expected to post roughly $1 billion in exports, up from $800 million posted last year.
“At the height of the garments industry, exports were around $1.6 billion a year, then this went down to as low as $400 million. But it’s been increasing slowly. Assuming they can resume production given the orders from abroad, garments exports in 2014 may hit $1.2 billion,” Ortiz Luis said.