Faster export growth seen

MANILA, Philippines - Merchandise exports are seen to post a higher growth rate this year compared to a year ago amid expected strong demand for automotive electronic products and other non-electronic goods.

“We expect that merchandise exports will post a higher growth rate in 2014, perhaps even in the low double digits,” Senen Perlada, director of the Department of Trade and Industry’s Bureau of Export Trade Promotion and executive director of the Export Development Council said in a text message.

For full-year 2013, he said merchandise exports are seen to post a growth rate ranging from 3.5 to six percent.

Merchandise exports were valued at $51.994 billion in 2012.

“Expected drivers are automotive electronics, chemicals, forest products, wood manufactures, furniture and furnishings, processed food and beverages, fruits and vegetables, among others,” Perlada said.

Latest available data from the National Statistics Office (NSO) showed that as of end-October, the country’s merchandise exports went up by 1.3 percent to $45.085 billion from $44.518 billion in the same period of 2012.

The aggregate value of merchandise exports prior to October was on a decline compared to the same period in the previous year amid weak performance of electronic products which comprise the bulk of the country’s merchandise shipments.

For the January to October period, the value of exports of electronic products reached  $17.971 billion, 7.72 percent lower than the $19.474 billion in the comparable period a year ago.

The Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) expects a 10-percent contraction in the value of shipments of electronics products in 2013.

Earlier, the group was projecting a five-percent growth in the value of electronic exports for 2013 but had to slash the estimate due to the sluggish performance of shipments.

SEIPI president Dan Lachica said that while the group expects the value of electronic exports to contract in 2013, it sees the sector recovering and growing by five percent this year.

The growth, he said, would be supported by strong demand for automotive electronics as well as consumer electronic products.