The Department of Trade and Industry expects the country to still post slight growth in merchandise exports this year despite the expected 12-percent contraction in electronics shipments.
In a text message, Senen M. Perlada, director of the Bureau of Export Trade Promotion (BETP) at the DTI, admitted that the projected contraction announced by the Semiconductor and Electronics Industries in the Philippines Inc. (Seipi) was expected to weigh down on the country’s total merchandise exports.
However, the DTI is still “encouraged by the fact that non-electronics (shipments), which grew by 10.3 percent from January to August this year, are buoying merchandise export performance” Perlada said.
“If this trend continues for the rest of the year, and with non-electronics now making up more than half of merchandise exports, we can expect total exports to post at least flat or slight growth this year,” Perlada said. “We are less dependent on electronics now and we are diversifying the base of our products for export.”
“Of course all these developments will be part of the assumptions for the new Philippine Export Development Plan 2014-2016. We will then adjust our targets accordingly,” he further said.
Seipi earlier announced that electronics exports would contract this year, driven largely by a weakness in global demand, specifically for semiconductors. While double-digit growth is seen in the automotive and consumer electronics sectors, weakness in the semiconductor sector, which comprised 76 percent of the industry export, caused the said contraction.
In reaction to this announcement, Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc. (Philexport), said the country’s total exports, including services, might grow at a much slower pace of 3-4 percent.
Certain quarters, however, believe that the country’s total exports would likely grow as major markets are seen to recover.
The DTI announced earlier that it was expecting services and non-electronics exports to boost total exports.
The target to double exports to $120 billion by 2016 remained the overarching goal of both the government and the private sector.
Perlada earlier said that at present, electronics exports accounted for about 40 percent of total exports, while non-electronics exports accounted for 60 percent. Merchandise exports may be driven by growth in the exportation of agriculture products, woodcraft and furniture, processed products, gifts, toys and housewares, he said.