MANILA -The National Economic and Development Authority expects the country's merchandise exports to grow by 10 percent this year from the 6.9 percent contraction last year.

Socioeconomic Planning Secretary Cayetano Paderanga Jr. said in a statement, the Philippine Export Development Plan for 2011-2013 is keeping its target of $62.3 billion export revenues for 2012.

Paderanga, however, said the significant downside risks to projections, associated with the weak global demand resulting from slower growth in advanced economies and other major markets such as China and ASEAN, remain.

He added that electronics exports, which accounts for more than half of total receipts and are mainly produced under contract manufacturing, possibly will continue to experience weak growth in 2012.

"Industry reports noted that contract manufacturing business, which is composed of electronic manufacturing services and original development manufacturing, is anticipated to decline slightly worldwide in 2012. It was also reported that total contract manufacturing revenue will decline by approximately one percent or $3 billion from $360 billion in 2011," Paderanga said.

The NEDA official called for more extensive government and private sector commitment to the implementation of the strategies in the PEDP, adding that diversification strategies should be more aggressively adopted to minimize the country's vulnerability to adverse shocks, both external and domestic.

"Medium-term reforms should continually be implemented to improve trade logistics, business and policy environment, labor productivity, the link between exporters and micro, small and medium enterprises, research and development, and technology in order to move up the value chain and enhance the competitiveness of the export sector," he said.

In December last year, the value of goods exports dropped by 20.7 percent to US$ 3.3 billion in December compared to the previous year.

From January to December, exports dropped to $47.967 billion from $ 51.498 billion during the same period a year ago. *PNA 

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