ELECTRONICS exports could contract by 18% this year, an industry group yesterday said, given belt-tightening by firms wary of renewed global turmoil.
From an August forecast of -5%, “present guidance is semiconductor and electronics exports is expected to drop 18% for 2011,” Semiconductor and Electronics Industries in the Philippines, Inc., (SEIPI) President Ernesto B. Santiago said in a text message.
“Although there has been increase on consumer spending, it is the contrary to industrial spending, meaning companies are not buying or upgrading tech products,” Mr. Santiago added.
The grimmer outlook came as the government reported that merchandise exports fell by 15.1% in August from a year ago. Electronic products, which accounted for 51.2% of total exports during the month, recorded a 30.6% plunge.
SEIPI began the year with an 8-12% growth goal following 2010’s record 40.11% gain. Supply disruptions caused by March’s disaster in Japan had prompted the -5% downgrade.
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By: E. J. Diaz
Source: Business World, Oct. 12, 2011
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