Exporters still upbeat

Local exporters still expect exports to continue rising by double-digit figures this year despite expectations by some sectors that the industry will go through a difficult period.

Philippine Exporters Confederation (Philexport) president Sergio Ortiz-Luis said this year’s exports will grow by a healthy 11 percent. This projection is more optimistic than the growth projection of the Department of Trade and Industry (DTI) of just between five to eight percent this year.

The DTI expects exports this year to hit about $41 billion to $42 billion.
For the first 11 months of 2000, export earnings amounted to $34.5 billion. For the whole of 2000, the trade department is expecting exports to reach $39 billion or up by 11 percent from 1999’s level.

Ortiz-Luis is banking on the performance of the electronics sector to fuel the growth in exports. "Electronics would likely bring in $30 billion this year," he said.

He disputes pessimistic observations of some sectors that the growth of the export sector would decelerate this year due to the slowdown in the US economy which is the country’s biggest export market.

The US accounts for nearly 60 percent of the country’s export earnings.

"Even in the past, a slowdown in the US economy did not have as big an impact on Philippine exports," Ortiz-Luiz said.

The continued depreciation of the peso also makes local export products more competitive in the international market.