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PHL to keep export target despite slower shipments in Jan.-May


The Philippines will keep its export target this year despite weak shipments in the first five months, the Department of Trade and Industry (DTI) said Tuesday. Philippine merchandise exports went up by 7.5 percent to $20.625 billion in January to May from $19.185 billion a year earlier. Exports remain within the 10-percent target this year despite the 3.2 percent slow down in May, the department said. “Despite slowdown in electronics exports, other merchandise exports continue to experience robust growth in double-digits, keeping our performance within the 2011 export target," Cristobal said. Philippine shipments consist of 45 percent electronics goods and 55 percent non-electronics, the Trade secretary said. “Non-electronic products that increased in export sales were under the minerals, home style, and wearable categories that show we are diversifying our merchandise exports," he added. "With the PEDP [Philippine Export Development Plan 2011-2013] set in motion, we are confident that our export figures will register favorable and steady growth in the succeeding months," Adrian S. Cristobal Jr., undersecretary for International Trade said. With the PEDP different strategy platforms have been adopted to boost export revenues in the next three years. Approved by President Aquino this week, the plan seeks to double exports to $120 billion by 2016. The slow recovery of the United States and the recent effects of natural disasters in Japan have created an imbalance in the electronics sector, a key driver of Philippine exports, according to the trade department. Expecting a recovery Still, the Semiconductor and Electronics Industries of the Philippines (SEIPI) expect shipments to recover by the third and fourth quarters and to regain the 8 to 12 percent revenue forecast for the year. Prices of electronics fell because of weak consumer demand and improved competition in the market, Socioeconomic Planning Secretary Cayetano Paderanga said. "Consumer spending has been increasingly affected by rising energy and food prices, and tight credit markets," Paderanga said. This highlights the extreme importance of diversification in terms of both markets and commodities being exported, Paderanga said. While the Philippines is making a significant shift from its dependence on traditional markets like the US, Japan, and the European Union, the focus of the country’s exports on limited products remains high relative to its main competitors and trading partners in the ASEAN region, Paderanga added. Exports to East Asia accounted for 44.9 percent of total exports in the first five months. The Philippines shipped $1.84 billion to the region, up 5 percent from $1.75 billion a year earlier. Shipments to the US also grew 1.92 percent and to Japan, 1.10 percent. — VS, GMA News

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