Weak demand blunts PH’s export goal

THE COUNTRY’s chief economist on Thursday conceded the Philippines’ yearend value of exports would likely decline compared to last year’s, while growth in imports would surpass the government’s target.

“Exports will continue to be quite unfavorable for us. We will probably end up negative,” National Economic and Development Authority (Neda) Director-General and Economic Planning Secretary Arsenio M. Balisacan told a press conference Thursday.

The latest government data showed the value of merchandise exports as of end-October amounted to $48.9 billion, down 6.2 percent year-on-year.

Neda has been blaming “weak” global demand for the exports slump.

As early as September, Balisacan already conceded that the government’s 7-percent exports growth goal for 2015 would be difficult to reach.

As for imports, Balisacan said shipments from abroad “will grow much faster,” which was expected to surpass the 2-percent growth projection for this year.

“We expect imports to accelerate given the continuing positive sentiments about the economy and the ramping up of infrastructure programs,” the Neda chief said.

As of end-September, the total value of imported shipments rose by 2.3 percent year-on-year to $49.9 billion.

For next year, Balisacan said the rollout of more infrastructure projects would further bolster imports. “We would expect imports of capital goods and raw materials to be on a high trajectory.”

Last year, export revenues reached $62.1 billion, while imports amounted to $65.4 billion.

The Cabinet-level, interagency Development Budget Coordination Committee will meet before the end of the year or early next year to revisit the country’s growth targets for the next two years, Balisacan said.