Philexport president Sergio Ortiz-Luis Jr.
The country’s total exports may grow by a much slower pace this year than that of 2012, when export receipts of $60 billion were posted, an industry official said.
The growth of merchandise exports alone may be flat, compared with the $51.994 billion recorded last year, said Sergio R. Ortiz-Luis Jr., president of Philippine Exporters Confederation Inc. (Philexport).
“We have already accepted the fact that we will not meet our [export] target, but we are hoping [we’ll end the year with a] positive growth. From a projection of 10 percent, we are hoping to book a 3-4 percent growth at least,” Ortiz-Luis said on the sidelines of the 39th Philippine Business Conference Tuesday.
The projected growth in total exports will be driven by the services and non-electronics sectors including agriculture, wood-based products, furniture, metal manufacturing and garments, he added.
These sectors will help offset the expected decline in electronics exports, which an industry group earlier projected to contract by 12 percent this year.
Ortiz-Luis’ projections were much lower than the target set by the Department of Trade and Industry earlier this year. As previously reported, the DTI was targeting to chalk up $81.53 billion in export revenue this year on the back of rising non-electronics shipments and a robust services sector.
Of the amount, $61.10 billion will comprise of merchandise shipments, and $20.43 billion in services.
Next year however, Philexport expects the country’s total exports to grow by a much faster pace with the recovery of most major markets, Ortiz-Luis said.
The DTI earlier announced that the services and non-electronics exports would buoy up the country’s export receipts. The target of the government and private sector to “double up” exports to $120 billion by 2016 remains unchanged.
Senen M. Perlada, director of the Bureau of Export Trade Promotion (BETP) at the DTI earlier said that the services industry referred not only to business process outsourcing sector, but also services in the areas of tourism, health management, architecture, education and engineering, among others.
The services sector has been performing well and is expected to account for 22 percent of total exports by 2016—up from only 9 percent in 2002.
“At present, electronics exports is down at 40 percent of total exports. Non-electronics exports account for 60 percent, and these are what is keeping us afloat. Merchandise exports is expected to be positive over the next month or so, driven by agriculture products, woodcraft and furniture, processed products, gifts, toys and housewares,” Perlada earlier said.