Export sector seen to start recovering from slump
Philippine exports are expected to recover this year and breach the $100-billion mark by 2017 despite the continued slump in merchandise exports in the last 12 months.
The optimism was based on the continuing recovery in the economies of the United States and European Union, and the country’s preferential trade agreements, which had been gaining significant traction, according to Senen M. Perlada, director of the export marketing bureau of the Department of Trade and Industry.
On the sidelines of a forum hosted by the British Chamber of Commerce Philippines (BCCP) Wednesday, Perlada admitted that it might be difficult to hit the government’s original growth target of 8 to 10 percent this year, given the 15 percent decline in merchandise exports to $4.6 billion in the first quarter, the steepest drop seen in the past six months or so.
“But growth in services is really strong. For 2016, we can still pull off a surprise and by 2017, I’m pretty sure we can meet our revised projection of hitting $100 billion,” Perlada said.
According to Perlada, the DTI was hopeful that merchandise exports would be boosted by the electronics sector and agriculture, which was expected to recover following the last El Niño episode.
The country’s inclusion in the generalized scheme of preferences of the EU and the US, and the strong and continued interest of foreign companies in Philippine products and services were seen to boost exports.
“I feel positive about the interest of the US in the Philippines. Based on our recent mission to North America, companies there are hungry to do new things and they’re ready to explore additional items from the Philippines,” Perlada said.
A trade mission to Japan last month also generated good results for software companies in the Philippines as its members were able to bag contracts.
