By Eileen A. Mencias

The government expects exports to recover next year, with growth picking up at 8 percent to 10 percent following a projected decline this year.

Documents from the Development Budget Coordination Committee show that imports will also expanding by 12 percent to 14 percent in 2010.

The DBCC, an interagency group that maps out the country?s economic growth and fiscal targets and policies, earlier saw imports dropping 8 percent to 10 percent this year and exports declining 6 percent to 8 percent.

?The expected recovery in 2010 is the driving force behind the positive exports and imports growth. The big decline this year will also explain the base effects resulting in a large positive growth in 2010,? Bangko Sentral Deputy Gov. Diwa Guinigundo said, when asked about the growth in exports and imports next year.

The DBCC expects the gross domestic product to grow 4.9 percent to 5.8 percent next year and the gross national product to rise 5.7 percent to 6.6 percent.

It expects higher oil prices next year, with Dubai oil ranging between $55 and $75 per barrel from $45 to $60 this year.

Despite the huge contraction in exports this year, the central bank still sees a surplus in the balance of payments because of the steady flow of remittances from Filipinos abroad.

The volatility in the financial markets and fears of a deepening global recession have prompted the central bank to prepare measures to ensure a surplus in the external account.

Guinigundo earlier told reporters that the competitiveness of Philippine industries would be key to strengthening the country?s external account.