The Department of Trade and Industry has reduced its 2016 target for total merchandise and service exports to $101.3 billion, from the original $120 billion, given the slower than expected growth of the sectors.
“We need to set still an ambitious but a more realistic target, $120 billion is not achievable by any [means] unless there is a miracle,” said Trade Secretary Gregory L. Domingo on the sidelines of the yearend Philippine economic briefing on Tuesday.
“We only have three years left, which means we have to increase exports by $18 billion a year [for 2014 to 2016] to reach $120 billion target so it’s not realistic,” he added. “Even if we increase 20 percent a year for the services sector, where are we going to get the remaining [amount]? We can’t get that from merchandise exports. Electronics exports should start to turn positive this year and next year, which will give our exports a boost, but still not enough to make up for the shortfalls.”
Based on the DTI report, total exports for 2013 stood at $75.5 billion, while this year’s export receipts are forecasted to increase by 8.6 percent to reach $82 billion.
Exports are seen further rising to $90.6 billion by 2015, reflecting a 10.4 percent growth compared to the previous year, and $101.3 billion by 2016 or an 11.9 growth year-on-year.
The export growth for 2014, according to the DTI report, comes against a backdrop of a 6.5-percent to 7.5 percent growth in Gross Domestic Product this year as forecasted by the National Economic and Development Authority.