Exports of electronics and semiconductor, the country’s biggest merchandise export, is expected to suffer a big blow with as much 10 percent decline in growth this year and a flat growth in 2024 due to the lingering unfavorable global factors, the industry’s top official said. 

Dan Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), said that the industry’s export is expected to decline by “9-10 percent this year and flat for 2024.”  

Lachica attributed the bleak outlook to “inventory correction, political, and economic global factors.”

He said that these factors affecting the global industry are expected to extend to 2024, thus limiting the industry’s growth next year to flat.  

The dim outlook was already evident in the first three quarters this year. Official data from the Philippine Statistics Authority showed that from January to September 2023, the industry exported a total of $33.75 billion worth of goods, 4.37 percent lower than the exports in the same period last year of $35.30 billion.

Lachica said the global economic headwinds as well as the geopolitical tensions have affected the international trade for electronic goods, including the Philippines. 

The fourth quarter, however, is expected to help cushion the decline but may not be enough to cover the shortfall in the past quarters. Earlier, Lachica expressed hope that the last quarter would bring the country’s exports by year-end to at least flat. 

The industry started with a five percent growth forecast this year, but revised it to just zero or flat growth as data came in. 

According to SEIPI, the country’s total electronics exports reached $49.09 billion in 2022, reflecting a 6.88 percent growth from $45.93 billion in 2021.