MANILA, Philippines — The electronics sector, the country’s top exporter, is expected to post strong growth this year as the recovery of the global economy from the pandemic triggers a rebound in demand for technology products.
In its weekly economic preview, market intelligence firm IHS Markit said the near-term outlook for the electronics industry in Asia–Pacific is for continued strong expansion.
Electronics is the country’s top export, accounting for almost 60 percent of total outbound shipments.
Latest data showed that dollar earnings from electronic products improved by 8.2 percent to $3.5 billion at the start of the year.
IHS Markit Asia–Pacific chief economist Rajiv Biswas said the easing of lockdowns in many countries has triggered a rebound in consumer spending, helping boost demand for a wide range of consumer electronics.
The electronics manufacturing industry is an important part of the manufacturing export sector for many Asian economies, including South Korea, mainland China, Japan, Malaysia, Singapore, Philippines, Taiwan, Thailand and Vietnam.
“Spending on consumer electronics has also been boosted by fiscal stimulus measures in many countries that have provided significant pandemic relief payments to support households in many large economies,” Biswas said.
He added that the pandemic has been accelerating the pace of digital transformation due to the global shift to working remotely, which in turn boosts demand for electronic devices, such as computers, printers and mobile phones.
However, Biswas noted that the global electronics industry continues to struggle with protracted supplier delivery times and pricing pressures for critical materials.
Manufacturers are facing intense cost pressures on raw material prices and supplier fees.
IHS Markit further noted that the medium-term economic outlook is still supportive for the electronics industry, with a sustained strong world economic growth forecast until 2024.
The outlook is supported by major technological developments, including 5G rollout over the next five years, as well as demand for industrial electronics.