Santos projects export growth of 10% in 2005

Trade and Industry Secretary Juan B. Santos is still confident that exports will grow by 10 percent this year despite expectations that demand for electronics would slow down this year.

Santos said the government’s projection of a 10 percent export growth would still be based on exports of electronics as well as services.

"While year to date exports is at five percent, we remain confident that we would still hit 10 percent," Santos said.

"Growth will be mostly electronics-related and we expect services, especially in the information technology (IT) sector to contribute to growth," Santos said.

Under the 2004-2010 Medium-Term Philippine Development Plan (MTPDP), the government projects exports to grow 10 percent to $43.8 billion this year.

Next year, the MTPDP projects the country’s export of goods and services to hit $50 billion.

There are doubts though by some sectors that the 10 percent export growth target will be achieved given the expected slowdown in the global economy, which in turn could dampen demand for electronics – the country’s main export.

Last year, the country’s exports grew 9.3 percent to $39.6 billion. April export figures showed a growth of 8.8 percent year-on-year but export growth from January to March was negative.