MANILA, Philippines - The local export industry is looking at reducing its 2011 export target in half after posting a dismal five-percent decline for the first semester.
In an interview, Philippine Exporters Confederation (Philexport) president Sergio Ortiz Luis estimated that instead of the projected 10-percent growth target this year, exports will likely grow by only five percent.
“The average from January to July didn’t even hit four percent,” Ortiz Luis said. He said the exports industry was relying on electronics exports to pick up but it did not recover.
In fact, he said that if the downward trend continues, even the five-percent growth may be difficult to achieve. In spite of this, he cleared that there will be growth in exports albeit slower than expected. He said it will not be negative or even flat. At the very least, he said it will grow by three percent. “Based on the data available now it may be three percent to five percent,” he said.
Ortiz Luis said they expect improvement in the second semester export figures. “The problem in Europe and the Middle East wont probably last that long,” he explained. “If the market improves then next year will be better.”
Ortiz Luis said they will not be revising their medium term plan of 10-percent growth. He said they expect next year’s growth to be at 10 percent. He explained that with a lower base given the slow pace this year, it will be easier to post a 10-percent growth next year.
Meanwhile on the exchange rate, Ortiz Luis said they are comfortable with the 43 to a dollar exchange rate. “43 to $1 is something we can live with.”
Meanwhile, the Department of Trade and Industry (DTI) said new winning export sectors have lifted sales of Philippine exports for the month of July, helping compensate the decline of the electronics sector due to soft demand in traditional markets such as EU and the US.
“Non-electronics exports registered commendable growth for the period compared to last year,” said Trade and Industry Secretary Gregory L. Domingo. “Our new export winners support the country’s strategy to sustain growth through less dependence on traditional exports like electronics and traditional markets like the US and EU.”