The country’s exports for the year are poised to fall short of the government’s 10-percent growth target.
According to the National Economic and Development Authority (Neda), global demand for Philippine-made goods started to bounce back in the second half from a contraction earlier in the year, but the recovery was not enough to meet the target.
In an interview Friday, Neda Director General Arsenio Balisacan said exports for the year could still settle in the positive territory despite year-to-date contraction as of August, but growth would likely be in the single-digit level.
“There was recovery in the second half but it may not be enough [to hit the full-year exports growth target]. The export industry in fact has already lowered its export growth projection for the year,” said Balisacan, who is also economic planning secretary.
Exporters were earlier expecting their revenues to grow at least 10 percent this year from what they earned in 2012.
Latest data on exports from the National Statistics Office, however, showed that exports amounted to $35 billion in the first eight months, down 0.8 percent year on year.
But in August alone, exports posted a robust growth of 20 percent to $4.58 billion from a year ago.
Lackluster global demand in the first half was blamed on economic problems in the United States and the Europe, which serve as two of the biggest export markets for Asian exporters.
Demand for electronics, the main export product of the Philippines, was anemic as the economic woes in the key markets forced consumption to focus largely on basic goods.
Balisacan said a good news, nonetheless, was the Philippines’ diminishing reliance on electronics for its export revenues. This was the reason for the recovery of exports so far in the second half despite the still weak demand for electronics, he said.
The 20-percent growth in overall exports in August was despite the 0.4-contraction in electronics to $1.78 billion.
Biggest export earners during the month were woodcraft and furniture, mineral products and chemicals.
“We continue to diversify our exports and that is a good thing,” Balisacan said.
For 2014, the country’s chief economist said the Philippines might have a better shot at hitting a double-digit growth in exports.
The government’s official exports growth target for next year is set at 12 percent.
Balisacan said growth in imports of raw materials and other inputs for production seen in the previous months indicated that Philippine manufacturers were expecting and preparing for higher demand for their goods, including demand from foreign buyers.