PH garment exporters brace for sluggish global market this 2024
MANILA, Philippines —A local trade association of garment exporters sees industry revenues this year ending flat, downgrading its earlier target of a modest 2-percent growth from last year, amid a string of unfavorable economic conditions currently affecting overseas markets, including the United States.
Foreign Buyers Association of the Philippines (Fobap) president Robert Young on Monday said that projections have been changed as there are no fresh production orders being placed.
“All in all, we see a rather unstable business climate in the apparel and clothing export business in the next two to three quarters. Merchandise sales will face a big challenge,” Young said in a message sent to the Inquirer.
READ: Garment exporters await better 2024
“Eventually, production orders will dwindle,” he added.
Diversifying source
Young, whose trade group exports about $1 billion worth of garments, said that the majority of their foreign clients were retreating from the global supply chain and shifting to regional or local suppliers.
“With developments such as Japan slipping into recession officially and Germany’s recent announcement of a looming recession, plus an unpredictable USA economy, the economic growth and rebound of Third World countries such as the Philippines will be affected in the near term due to trade restructuring or fragmentation of [orders from] the developed economies,” he said.
READ: Modest growth seen for PH garment exports in 2023
Aside from these three countries, Fobap also exports to the European Union (EU), Canada and several other countries in Southeast Asia.
The Philippines’ total external trade in goods amounted to $67.03 billion from January to November 2023, spelling an annual decline of 13.7 percent.
In contrast, service exports revenues from January to September 2023 grew by 20.7 percent to reach $34.7 billion during the nine-month period. INQ
