Export Marketing Bureau (EMB) Director Senen Perlada remains optimistic with the country’s exports target as revenues from electronics and services are seen to support the sector.
At the sidelines of the Franchise Asia Philippines 2016 International Conference, Perlada told reporters that the government may revise exports targets this year due to weak global market.
The slowdown in global market can be reflected in the country’s merchandise exports performance which posted negative growth for 14 consecutive months, according to Perlada.
Data from the Philippine Statistics Authority (PSA) showed that exports of goods declined by 6.6 percent in the first five months of the year to $22.07 billion from $23.64 billion in the same period in 2015.
But should electronics sector expand by 5 percent to 6 percent, growth of merchandise exports may be flat by the end of the year instead of negative growth, the official said.
In January to May 2016 period, exports of electronic goods went up by 2.1 percent to $11.15 billion.
Electronics sector accounts for about half of merchandise exports revenue.
Perlada added that services exports remain robust for this year and is projected to register double-digit growth by the end of the year.Exports revenue of services reached to almost USD29 billion in 2015, the official said.
Services account for about 30 percent of the country’s exports revenue.
“It can pull up the numbers. So if you’ll have double-digits [growth]for services and if electronics maintains its target, we will be hopefully flat in merchandise, and services will pull it up to positive growth,” Perlada noted.
In the Philippine Exports Development Plan 2015-2017, the government initially projects export growth to range from 6.6 percent to 8.8 percent in 2016 and from 7.7 percent to 10.6 percent in 2017.