PH exports increasing but external headwinds slow down growth

Data from the Bangko Sentral ng Pilipinas showed that Philippine exports of goods and services from January to June this year increased by 5.4 percent to USD48.42 billion from USD45.95 billion in the same period in 2022. (File Photo: Venti Views/Unsplash)

MANILA – The country’s export revenues are slowly recovering this year due to external factors beyond the control of the local stakeholders, Philippine Exporters Confederation (Philexport) president Sergio Ortiz-Luis Jr. said.

In a chance interview at the Philippine Business Conference at the Manila Hotel on Oct. 26, Ortiz-Luis said the recovery of exporters is “slowly but surely”, hoping that it would hit the export target under the Marcos administration’s Philippine Export Development Plan (PEDP).

“I think we have a fighting chance (to hit the 2023 exports target)… It (export revenues) is increasing now,” he told trade reporters.

Data from the Bangko Sentral ng Pilipinas showed that Philippine exports of goods and services from January to June this year increased by 5.4 percent to USD48.42 billion from USD45.95 billion in the same period in 2022.

The government targets goods and services export revenues of USD126.8 billion in 2023.

However, current geopolitical tensions are hindering the fast recovery of the industry, Ortiz-Luis noted.

“Hopefully, the problem in Israel will not escalate because the Ukraine problem is still persisting until now,” he said.

The Philexport executive also said the region should also be monitoring the tensions in the South China Sea in order not to add to the ongoing conflicts across the globe that can affect international trade.

He also mentioned that the volatile global oil prices and the higher inflation target in the country, which reached around 4 to 5 percent from a range of 2 to 3 percent, are also affecting the growth of Philippine exports.

Ortiz-Luis also urged lawmakers to allocate resources for the Export Development Council (EDC) and the Center for International Trade Expositions and Missions (CITEM), which are all under the Department of Trade and Industry (DTI), that are responsible for policymaking for the export sector and promoting Philippine goods and services for exports overseas.