RP exports to sustain recovery this year - DBCC

MANILA, Philippines - The export sector is expected to sustain its recovery this year and in 2011 along with the continued recovery in the global economy, according to government estimates.

The technical level-Development Budget Coordination Committee (DBCC), the interagency group that sets the country’s macroeconomic assumptions and targets, revised upward its exports growth projection for next year to nine percent to 11 percent from a previous projection of eight percent to 10 percent.

Along with the recovery in exports next year, the DBCC also expects the peso to strengthen slightly against the dollar to a range of 46 to 48 against the greenback from a previous projection of 46 to 49 against the dollar.

The DBCC’s forecast for inflation next year is unchanged at three percent to five percent while for the benchmark 91-day Treasury bill (T-bill) rate, the DBCC expects this at a range of four percent to six percent from a previous projection of 4.5 percent to 6.5 percent.

Barclays Capital, a global research and investment firm, said the Philippines continues to benefit from the sharp recovery in the global technology sector that is currently underway.

This as Philippine exports grew for the fourth straight month in February as the recovery of the global economy boosted demand for Philippine products, the National Statistics Office (NSO), reported yesterday.

NSO data showed that the country’s export earnings grew by 42.3 percent to $3.57 billion in February from the year-ago level of $2.51 billion.

This, however, was lower by 0.4 percent compared to the $3.58 billion recorded in January.

Shipments of electronics, which comprise bulk of exports rose to $2.07 billion or 53.4 percent higher than the 51.2 percent growth in January.

Meanwhile, NSO data also showed that semiconductor exports, which comprised 42.3 percent of total exports and the biggest share among the major groups of electronic products, amounted to $1.508 billion or an annual increase of 59.6 percent.

Exports have been battered severely by the global financial turmoil starting in 2008 and are only recovering now.