Exporters hopeful of rebound by yearend

MANILA, Philippines – Exporters remain hopeful the market will post positive growth towards the end of 2009 as the industry is expected to recover from the impact of the global financial crisis, but average growth for the year will remain at the negative territory with an eight percent contraction. 

This optimism was expressed by Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis in an interview amid the 3.6 percent drop in export revenues in April 2009, reaching $2.8 billion from previous month’s $2.9 billion.

Ortiz-Luis said the Export Development Council (EDC) forecasts total exports to contract eight percent this year, with merchandise exports projected to decline 16 percent.

The reduction in this year’s overall growth projection from the earlier two percent has been attributed mainly to lower revenues of crisis-hit electronics sector, which accounts for around 60 percent of total exports.

However, despite the 3.9-percent improvement in sales of electronic products in April this year over the previous month, government data indicated that total exports during the month were lower compared to March figure as other major export products —garments and machinery and transport equipment posted considerable declines.

All major exports suffered double-digit retreat except tuna.

But Ortiz-Luis said the services sector will bring up total export sales this year, with its revenues seen to grow 27 percent.

“At the moment, the growth drivers are agriculture and services, particularly BPO (business process outsourcing),” he said.

Food exports remain robust this year especially marine products, he added, noting that “tuna is contributing very much.”

“The eight percent is how we think we will perform (this year).  It may improve but it can go either way,” he said.

Ortiz-Luis said he is also confident 2010 might be a positive year for the export sector as positive growth is expected by yearend.

The EDC’s exports growth projection for this year is higher than the 15-13 percent contraction seen by the Development Budget Coordination Committee taking into account the external economic environment. – Philexport News and Features