The National Economic and Development Authority (NEDA) is optimistic that electronics exports will improve in the coming months.
Electronics, which accounted for 38 percent of the country’s total exports in May, declined by 0.7 percent to $1.872 billion. This followed a sharp 23.8-percent drop in April.
“On a positive note, there still appears to be good prospects for growth in the electronics sector, as indicated by improving book-to-bill ratio in Japan and a parity of above 1.0 in the US,” Economic Planning Secretary Arsenio M. Balisacan said in a statement.
“In fact, the book-to-bill ratio in the US has been above 1.0 for four consecutive months, reaching 1.05 in May 2012,” Balisacan added.
A book-to-bill ratio or parity of above 1.0 indicates an upbeat market, as demand or bookings outpace supply or billings. A parity of less than 1.0 suggests weak demand, the NEDA said.
Revenues from the semiconductor sector, which makes up the majority of electronics exports, will be sustained by strong demand for consumer-oriented products such as mobile phones and media tablets, said Balisacan, citing industry sources.
Asian Development Bank Country Director Neeraj K. Jain earlier said that a strong performance of the electronics industry would boost export growth in the second half.
Jain added that the ongoing reconstruction in Japan is helping boost Philippine exports.—Ana G. Roa