Weak electronics demand seen further pulling down PH exports
The continued weakness of the electronics sector is seen further dragging down Philippine exports this year.
Trade Secretary Gregory Domingo said the country’s exports would most likely register flat growth this year or, worse, even a decline especially if electronics receipts further tumble in the remaining months of 2011.
“This would all depend on how the electronics sector would fare in the last quarter,” Domingo told reporters at the sidelines of the Philippines-Korea Business Forum on Monday.
“Given what’s happening to electronics now, we may most likely get zero growth.”
He said that based on the forecasts of the Semiconductor and Electronics Industries of the Philippines Inc. (Seipi), the electronics sector was not likely to recover until the first quarter of next year.
Earlier in the year, Seipi president Ernesto Santiago said the industry was expected to grow by 8-12 percent this year, even with the blow that the sector suffered from the Japan triple crisis in March.
According to data from the National Statistics Office, export receipts plunged 27.4 percent in September to $3.88 billion from $5.43 billion in the same month last year.
In the first nine months, the value of merchandise exports slipped 3.1 percent to $37.19 billion from $38.36 billion in the same period a year ago.
The huge drop in overall exports was attributed to the 47.9-percent decline in electronic product exports in September, from last year’ $3.48 billion to only $1.81 billion.
From an earlier forecast of a 9-10-percent growth in exports for the year, the government had revised this projection to just a 5-percent growth.
In the meantime, the Philippine Economic Zone Authority (PEZA) further increased its investment growth target for the year to more than 11 percent.
PEZA director general Lilia de Lima said that from a target of 10-percent increases in investments, exports and employment for the year, the agency had revised its target to 11 percent for those three indicators.
Given the success of recent investment missions, however, she said PEZA was likely to grow its investment pledges for the year by more than 11 percent.—Abigail L. Ho
