The Philippine export sector is on its way to recovery and is expected to achieve a positive growth within the first half of 2010.

Senen Perlada, executive director of the Export Development Council (EDC) and director of the Bureau of Export Trade Promotion said the challenge is how to sustain the export growth next year.

Export earnings posted a slight 0.7-percent growth in October 2009 to $3.7 billion from previous month’s $3.6 billion.

The export sector already hit rock bottom at the beginning of the year due to the global economic crisis, but has started improving months after.

Perlada said the country’s green shoots are products having local value-added like food and jewelry goods.

Higher export revenues of these products somehow moderated the significant decline in the electronics exports in December 2008 and January this year.

“But electronics is really on the way up already. That will carry us through nominally, hopefully leading to big growth. Inventories have to be built, they have to get back to the channels that have remained dry for a while,” he added.

Perlada said the growth drivers for next year also include products which the country can supply to emerging non-traditional markets like neighboring ASEAN countries and even China.

“We have to look at products that serve the ageing society, products that our own overseas Filipinos consume and at very special niche market that cater to more universally-accepted demand like gifts,” he said.

“We also see good growth in Japan, Greater China and ASEAN.

Europe is also still a good market depending on the products or the promotional efforts that we will be having for that area. We are trying to really look seriously at Brazil and India,” he added.

Perlada is expecting an 11 percent decline in total exports this year, with merchandise exports seen at negative 19 percent.

“We are looking at 10 percent growth in 2010. We just hope that the tide of recovery will be such that we would have better demand for our merchandise exports," Perlada added.