Government to lower export target

Government is lowering its export target for this year as a result of the global economic slowdown which is expected to worsen following the terrorist attacks on the US, Trade and Industry Secretary Manuel Roxas II said over the weekend.

"Government is revising downwards its export figures especially since a global economic recession is now expected," Roxas said, adding that "the export numbers for July this year already showed a slowdown."

"In the beginning of the year we were saying at best a flat growth, now we are saying there will be a decline of at least 10 percent," Roxas said.

The country’s export earnings reached $38 billion for the whole of last year.

According to Roxas, most of the export slowdown will be in the electronics sector.

"One reason for the slowdown is the softening of demand for electronic products following the collapse of the dot-coms," Roxas said.

Roxas, however, still sees a bright spot in spite of the expected slowdown in export performance.

He said a large portion of the country’s import bill is accounted for by capital goods and raw materials.

"More specifically, 35 percent of the country’s import bill is capital equipment and 40 percent are raw materials and intermediate goods. This mix augurs well for continued economic activity."

The import figures, Roxas said, is the reason why government is still optimistic that the third quarter growth figure will still be positive.

Government remains optimistic that the country will still be able to weather the global recession by relying more heavily on its domestic production.