MANILA, Philippines — The electronics industry has revised its export growth target this year to a negative 5 percent from positive 8-12 percent because the Japan disasters plus the present condition of the US economy have adversely affected their exports performance in the first semester of the year.

Trade and Industry Secretary Gregory L. Domingo, who attended the meeting of the Semiconductor and Electronics Industries of the Philippines Inc. (SEIPI) recently, revealed the revised growth target.

SEIPI’s decision to reduce the growth target was firmed up after the Treasurercountry’s top dollar earner suffered a significant 5.3 percent decline in the first five months of the year.

Domingo, however, noted that despite the negative growth in the country's biggest dollar earner, the country’s overall exports for the same period grew a substantial 7.5 percent versus the same period last year because of the strong growth coming from the non-electronics exports.

"This is still very good because any rebound in the electronics sector in the second half should produce a very strong export picture for the whole of 2011," Domingo said.

This means, Domingo said, the 10 percent exports growth this year under the Philippine Export Development Plan is still very much possible.

To hit the 10 percent growth target, a 12.5 percent growth in the second half should be achieved.

"So even with just a .5 percent growth in the second quarter from the electronics sector, it is still possible to post a double-digit growth for the entire year," he said.

Domingo further said he was confident that exports in electronics would recover by the second semester because the economy is doing well and there is a tremendous interest from foreign investors.

"Traditionally also, the second half is much stronger than the first half," he noted.

Besides, he said, Japan is recovering faster than originally anticipated. Despite the low demand and production, electronics companies, however, are maintaining their workers in anticipation of a market recovery, he said.

Electronics composed 45 percent of total Philippine exports, while non-electronics accounted for 55 percent for the May exports.

Non-electronic products that increased in export sales were under the minerals, home style, and wearable categories that show the country was diversifying its merchandise exports.

For instance, exports of copper concentrates increased by 212 percent; cathodes of refined copper, 119.6 percent; wood crafts and furniture, 98 percent; coconut oil, 9 percent; and articles of apparel and clothing accessories, 6 percent.

The DTI’s Bureau of Export Trade Promotion (BETP) reported that favorable world market prices of coconut products and copper metal worked in favor of said sectors. (BCM)