DTI sees exports skyrocketing in H2

MANILA, Philippines - Exports for the second half of the year are expected to skyrocket and could even exceed the target growth rate of 10 percent, the Department of Trade and Industry (DTI) said yesterday.

At the same time, the DTI said they are considering reviving the Export Support Fund (ESF) to help exporters cope with external pressures.

In a press conference, Trade Secretary Gregory L. Domingo said that the month-on-month forecast is very volatile but they are keeping targets for merchandise export at 10 percent.

Export growth in the first quarter was 7.8 percent.

For electronics, Domingo said the industry is keeping an expert growth target of eight to 10 percent despite the twin disasters in Japan. In the first quarter, exports of electronics grew by only 4.6 percent that is why the said the industry is expecting a stronger second half.

Domingo said electronics make up more than 50 percent of the local exports but it experienced slow growth in the first quarter. The country’s second largest export, coconut oil grew over 100 percent when compared to the same period a year ago. Domingo also said garments and furniture exports also went up.

Domingo likewise said they would like to revive the ESF in order to give monetary aid to exporters. However, he said this will be subject to budget constraints. He said the ESF will be dependent on the Department of Budget and Management (DBM) and the Congress.

A P200 million ESF was released in 2006 but it already ran out. Domingo said they will be working on the criteria for qualification for a grant because they would like to be careful in helping out exporters. He said the sector must experience only temporary pressures making it difficult for exporters to conduct business or if there is long term growth potential for that specific industry.