Services seen to drive export growth

The government’s chief economist is bullish that the Philippines can still achieve its goal of doubling exports to $120 billion by 2016, despite the adverse impact of natural disasters on the country’s export capacity.

“I think (the target) is still achievable. I’m talking about exports in a broader sense. I think we have so much potential in the service exports because in that one, investments are growing quite fast. There is also a renewed strong interest among foreign investors in further growing that part of the economy,” said Arsenio Balisacan, Director General of the National Economic and Development Authority.

“Our manufacturing (sector) is also picking up with investments in it (rising by) double-digit levels,” he said.

These developments, he added, were expected to help support the Department of Trade and Industry’s projection of  a 10-percent growth in exports—both merchandise and services.

“The growth target is challenging but when you say exports, it’s not just merchandise but also services, which has been growing very fast.  If you combine these, then that’s not a difficult target,” he said.

Balisacan also pointed out the potential recovery of the electronics sector given recent positive developments in the global economy. The US and European economies, he said, had started to pick up. Japan is also moving forward with its massive fiscal stimulus.

“The composition of our exports is expanding. The share of the electronics sector—although still big in absolute terms—to total merchandise exports has been falling. Non-electronics sectors are now  generating far more jobs,” he added.

The Export Development Council was earlier reported to be planning to revise the $120-billion export target by 2016, given the serious impact of natural disasters on the country’s export capacity.

The EDC has started crafting the PEDP 2014-2016, which will contain export revenue targets for the next three years, in consideration of the problems affecting the local and international markets.

The current Philippine Export Development Plan 2011-2013, which was approved in July 2011, focused on several core products and market strategies.

Key focus sectors included information technology and business process outsourcing; electronics; agribusiness; minerals; shipbuilding; motor vehicle parts; garments and textile; home style and décor, and wearables.

In terms of product strategies, the roadmap sought to enable exporters to move up the value chain, participate in higher-value processes in the global supply chain, and develop linkages for organic, natural, and certification-based offerings.