Non-electronics seen to fuel Phl export growth

MANILA, Philippines - The government expects merchandise exports to grow eight percent to $85.2 billion this year, driven mainly by non-electronics especially fresh food and intermediate goods.

“Fruits and vegetables have been enjoying generally good harvests, while processed food and beverages have likewise been experiencing robust demand,” the Department of Trade and Industry (DTI) said.

In 2013, non-electronics exports totalled $30 billion, up 11.5 percent from $27 billion the previous year.

DTI said growth will be supported by increasing demand from Japan, China, United States, Singapore, Germany, Thailand and other countries in East Asia as well as the Asean.

“Lower tariffs in Philippine free trade areas have been a boon to Philippine exports,” it said.

Citing the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI), the DTI said the outlook for the electronics sector this year is a modest growth of five percent.

It said the growth in earnings from shipments of electronic products will be driven by renewed demand for automotive and consumer electronic products as well as from the telecommunications industry.

“New investments in the country’s electronics industry are also seen to support the recovery of shipments in 2014,” the DTI said.

In the first eight months of the year, Philippine merchandise exports expanded by 9.2 percent to $40.7 billion from $37.3 billion during the same period last year.