More sectors eyed to spur exports growth

Sunday, February 13, 2011

THE government is considering other sectors, such as coconut products, engineered bamboo and garments, to fuel Philippine exports which is expected to grow by 13 percent in the next three years.

Trade Secretary Gregory Domingo, in an economic briefing, said export growth comes from the electronic sector accounting for about 60 percent of total exports as well as services exports which is growing very rapidly at about 20 percent per year.

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Engineered bamboo products, which include laminated and glued bamboo pieces, are already transformed into high-value furniture and handicraft items that provide good economic revenues for the country, according to a government report.

Among the coconut products, coconut oil including crude and refined is also among the country’s top dollar earners. It ranked fourth according to December 2010 exports figure.

This followed electronics products, cathodes and sections of cathodes of refined copper, and apparel and clothing.

"With the increase in infrastructure investments as well as reduction in costs, we hope that exports (this year) will go higher than before," said Socio-economic Planning Secretary Cayetano Paderanga Jr.

Philippine export sales rose by 33.7 percent to $51.39 billion in 2010 from previous year's $38.44 billion.

Apart from stronger exports this year, economic managers are banking on investments to spur growth, which are expected to get a boost from construction, agro-industry, electronics, electronics and semiconductors, tourism and business process outsourcing (BPO).

On the supply side, services are seen to continually improve driven by retail trade, finance and private services.

"It is the services that we can depend on but we hope that investments will increase," Paderanga said. "We hope that infrastructure investments will already come in and actually there will be complementary private investments?These are the types of stimuli that we hope to be able to raise the whole trade."

The expected expansion in mining and acceleration in construction and full recovery of housing, biofuels and the Halal food market could likewise boost this year?s economic growth.

The government is confident of achieving a 7 to 8-percent gross domestic product (GDP) in 2011 from last year's 7.3 percent.