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Weak global demand forces PH to cut 2016 export target

By: - Reporter / @amyremoINQ
/ 12:20 AM July 21, 2016

The Export Development Council (EDC) will revise the country’s export growth target to about 3 to 4 percent this year due to a continued weak global demand and a slow recovery of the country’s key markets.

Under the Philippine Export Development Plan, the government originally set a 6.6 to 8.8 percent growth for 2016. However, exports had been on a decline in the last 14 months.

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On the sidelines of the Franchise Asia Philippines 2016, EDC executive director Senen M. Perlada said the revised outlook took into consideration the “(country’s export performance) in the first five months of the year when we saw a negative 6.6 percent growth. The demand is still weak globally. I was hoping this year would be a (recovery).”

He said the new target, which was already on the high side, would be achieved if the electronics sector grows 3 to 5 percent this year. Services exports, which account for a third of the country’s export receipts, was also targeted to grow by 12 percent.

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“The saving grace we’re looking at is really electronics. If they reach their targets, we should record either a flat or a positive growth [in merchandise exports]. Exports of chemicals are also going strong and we expect exports of agricultural and processed foods to recover this year,” Perlada added.

The EDC, a public-private partnership supporting the country’s economic goals, was more bullish of prospects for next year as the current lackluster global economic conditions was expected to recover.

“By that time, the consumer markets like the United States and Japan would have already solidified. We’re confident about Japan whose government is reintroducing or strengthening stimulus packages,” the trade official said.

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