YEARENDER: DTI remains hopeful despite global challenges

MANILA, Philippines - The Department of Trade and Industry (DTI) remains hopeful of a positive performance next year despite global challenges that have affected several key industries, particulary the export sector.

“2011 was a year of challenges because of all the significant global events including the financial crisis in Europe and the United States, the flooding in Thailand, the Arab Spring protests and the   earthquake in Japan,” Trade and Industry Secretary Gregory L. Domingo said in an interview.

However, despite the challenges, Domingo said the country still managed to post a decent growth in terms of gross domestic product (GDP) and investments. Latest data showed that combined approved investments of the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) stood at P585.937 billion in the first 11 months of 2011, up from P371.543 billion a year ago.

Low export growth

The government is expecting exports to grow by only two percent to five percent this year, substantially lower than the growth target of 10 percent   due largely to weak global demand for locally manufactured goods.

However, government officials are hopeful that exports may rebound in the latter part of 2011 due to a significant improvement in latest export data.

Latest report from the National Statistics Office (NSO)  showed that total exports in October contracted by 14.6 percent, slightly better than the September figure which showed a 27 percent decline. The decline in electronics exports also slowed down in October to 21.7 percent from a sharp drop of 32.8 percent in September. For manufacturing, the decline was 21.7 percent in October, an improvement against a drop of 32.8 percent in September.

“We are not happy with the figures because we were expecting a 10 percent growth,” Burea of Export Trade Promotions head Senen Perlada said.

For next year, however, Perlada said they are expecting a healthy export growth of 15 percent. “Because the government is not revising its 2013 target of $89 billion worth of exports, we are hoping for a 15 percent growth,’’he said.   The target under the Export Development Plan is approximately 10 percent growth per year. But because of the slow 2011, he said they are looking forward to a good 2012.

 “We are maintaining our target to double up exports by 2016,” he said. He identified the brightspots in exports like wood and food sectors.

Perlada has identified nine key export sectors. They are IT, electronics, BPO, minerals, transportation, motor vehicle, garments, homestyle and wearables.