GTEB may lower 2001 export target

Export target for garments may be lowered this year following a sales growth of only two percent in the first four months, the Garment and Textile Export Board (GTEB) reported yesterday.

Garment exports for the first four months of the year amounted to only $982.9 million, a mere two-percent hike from the previous year’s figure. In the same period last year, garment exports grew by 11.6 percent.

The GTEB attributed the slower growth rate to a drop in orders from both the American and European retailers due mainly to global economic slowdown.

The US is still the country’s biggest export market, accounting for about 76 percent of its shipments of garments and textile.

For the four-month period this year, garment exports to the US grew by only 3.9 percent to $749.25 million, which was sharply lower than the previous year’s growth of 11.3 percent.

On the other hand, shipments to Canada surged by 17.5 percent to $19.33 million this year, a notable improvement from a 9.9 percent growth recorded in the same period last year.

Canadian demand for locally-made garments and textile accounts for a meager two percent of the country’s total shipments.

While garment exports to the US and Canada continued to post growth, exports to the European Union were on the decline. The European Union is the country’s second largest market for garment and textile, accounting for 10 percent of total market pie.

Shipments to the European Union tumbled by 6.3 percent to $101.2 million from January to April this year compared with last year’s $108.45 million.

The GTEB said the decline in Philippine garment exports to the European Union was partly due to the US economic slowdown and the US dollar’s strong influence on the euro.

The GTEB also said there has been a downsizing of big traditional retailers like Marks and Spencer which buys substantially from the Philippines.

The GTEB, however, assured that "the drop in export sales in the early part of this year will be offset in the future by the growth and expansion of other retailers."

An upturn in garments and textile export is expected by the GTEB to occur in 2002.