MANILA, Philippines - The country’s exports will have to grow at rates faster than initially targeted starting next year in order to meet the $120 billion goal by 2016, as this year’s result is likely to be lower than expected, the Export Development Council (EDC) said.
“We can still double-up (exports) by 2016 but in the next years, growth should be about 14 or 15 percent (per year),” EDC executive director Senen Perlada said in a chance interview.
The country is aiming for an 11 percent growth in exports per year from next year to hit $120 billion in 2016 from $51.498 billion in 2010.
For this year, exports are targeted to grow 10 percent from last year’s $47.967 billion.
The exports growth target for this year may be not be achieved though given the weak performance of electronics shipments.
“Electronics is likely to be flat this year with one quarter remaining. Non-electronics will grow but I think it will be below 10 percent,” Perlada said.
Philippine Exporters Confederation (Philexport) president Sergio Ortiz-Luis Jr. told reporters earlier merchandise exports are expected to post lower growth of five to six percent this year as electronic products, which account for the bulk of outbound shipments, have yet to recover.
Outbound shipments of electronic products for the January to August period were down 8.13 percent to $15.59 billion from last year.
Aggregate merchandise exports as of end-August meanwhile, reached $35.283 billion, up 5.4 percent from last year.
Semiconductors and Electronics Industry of the Philippines Inc. (SEIPI) president Ernesto Santiago said earlier they expect exports of electronic products to post flat growth this year given the continued drop in outbound shipments.
The SEIPI initially set a 10- to 15-percent growth target for exports of electronic products this year but it cut its projection to five to seven percent in July, citing a weak global recovery affecting demand for shipments.
Ortiz-Luis said that while electronic exports are still down from a year ago, the Philexport is optimistic next year will be better with problems in the US and Europe not seen to persist that long.
Trade Secretary Gregory Domingo has said earlier exports are seen to grow just by five to seven percent this year amid the continued decline in exports of electronic products.
He said shipments of these products are seen to recover next year though as new electronic firms in the country start their operations.