Export revenues seen to grow by more than 8%

Philippine Business Inquirer, 2:30 am | Monday, October 6th, 2014

 

By Amy R. Remo

The Export Development Council (EDC) remained confident that the country’s total export revenues would further grow by more than 8 percent this year, despite the challenges posed by the container congestion at the Port of Manila, and some uncertainties in the global market.

“We can exceed the 8-percent [total exports growth forecast] this year. There is that possibility because electronics exports are going up, while the services sector is still strong. A downside though is the port congestion, the impact of which we are still studying,” said Senen M. Perlada, EDC executive director.

The 8-percent growth forecast for 2014 will bring total export revenues to $85.2 billion, of which $60.1 billion are merchandise exports, while the remaining $25.1 billion will come from services. This, Perlada said, was within the range set under the 2014-2016 Philippine Export Development Plan.

Perlada admitted however that the expected growth of the semiconductor and electronics sector could be tempered due to “certain realities.” Although global demand is picking up, it remains to be seen whether this will be sufficient to make a dent in export receipts. Also, the recovery in the United States remains uncertain, he said.

A good thing for the semiconductor and electronics industry, he added, was the favorable exchange rate.

The Semiconductor and Electronics industries in the Philippines last week expanded its growth forecast to 5-8 percent on the back of a recovery in demand from key markets like the United States, Europe and Japan.