SEIPI lowers electronic sector growth forecast

MANILA, Philippines - The electronics industry has slashed its export growth projection for this year, citing a weak global recovery which could affect demand for shipments.

Semiconductors and Electronics Industry of the Philippines, Inc. (SEIPI) president Ernesto Santiago said in a text message yesterday that it had cut its export growth projection to five to seven percent from a previous outlook of 10 to 15 percent.

He said the group decided to revise its projection as the world economy remains weak.

“The growth continued to be anemic affected by the overall world economy,” he said.

Latest data from the National Statistics Office showed that electronic products which accounted for 35.3 percent of total exports revenue in April, reached $1.635 billion.

Exports of electronic products in April was down 23.8 percent from the $2.146 billion in the same period last year.

Compared to the previous month’s $2.263 billion, exports of electronics products in April also declined 27.8 percent.

The country’s merchandise exports as of end-April reached $17.512 billion, up 5.5 percent from $16.592 billion last year.

Meanwhile, Philippine Exporters Confederation (PhilExport) president Sergio Ortiz-Luis Jr. said in a telephone interview yesterday that the group may have to review its exports’ growth projection this year given the strengthening of the peso.

“Target now is 10 percent growth, but if this strong peso would persist, we may have to reconsider that target,” he said.

He said many exporters which have to source some of the raw materials for their exports from overseas are already hurting from the peso’s gain.

The peso’s continued appreciation, he said, could lead to more losses to exporters.

The peso touched the P41.95 per dollar level on Monday, the highest level it has reached in eleven months.

The peso continued to assert its strength over the greenback yesterday as it traded at the P41.71 per dollar level.

The local currency closed at P41.72 per dollar yesterday.