Trade and Industry Secretary Peter B. Favila on Monday said the export sector is pulling the country out of its trade slump and ending the 13-month episode of negative growth which started at the onset of the global financial crisis in late 2008.
Favila even congratulated the country’s exporters for helping pull the industry out of the slump.
The National Economic and Development Authority (NEDA) reported that receipts from merchandise exports reached $ 3.7 billion in November 2009, 5.1% higher than for the same period in 2008 as mineral products and manufactured goods boosted outgoing trade.
“We are hopeful that this positive growth will continue in the following months. This is election year and rebound will definitely be a good score card for the Administration’s economic policy,†Favila said.
The 6.8% year-on-year increase in exports of manufactured goods helped buoy the year-on-year growth rate of merchandise exports in November 2009. This was mainly supported by the rise in electronic product shipments, the biggest contributor to the country’s exports which grew by 6.9% from the same period in 2008.
The November export performance gave the country a promising view of a road to economic vibrancy, said Favila.
The electronics industry, hard hit by the global crisis, has rebounded and this will mean that in time the industry will again start to hire personnel that it laid off last year, he projects.
It can be recalled that the government initiated the Comprehensive Livelihood Emergency Employment Program (CLEEP) to help those who were displaced by the crisis get alternative source of income. Favila was assigned to oversee the CLEEP programs in Laguna which was site of many electronic firms that laid off workers.
"Now with the rebound, we expect the export industry, especially the electronics sector to rev up its engine to be in sync with the growth momentum that is happening worldwide," Favila said.
The Semiconductor Industry Association (SIA) reported that November worldwide semiconductor sales were positive for the first time in 2009 as “2009 ended with sales of many IT and consumer products faring better than earlier projections.â€
Semiconductors grew by 8.5% in November compared to same period in 2008 and by 3.7% compared to October 2009. Sales in the Americas and Asia Pacific (excluding Japan) increased by 25.9% and 12% respectively.
Mineral products (11.4%) also posted positive growth on a year-on-year basis with export receipts of copper concentrates (333.9%), gold (22.5%), and iron conglomerates (184.8%).
The recent global crisis is a constant reminder that our country needs to develop more sectors for exports. This the reason for the Department’s business development program which seeks to develop industries such as business process outsourcing, food, automotive, health and wellness, furniture, marine, and others.
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