PH exports of goods, services breached $100B in 2023
MANILA, Philippines — The country’s export earnings from trade of goods and services breached the $100-billion mark in 2023, reaching a record-high level as receipts grew for the third consecutive year although still short of government and industry expectations.
The Department of Trade and Industry (DTI) on Monday released preliminary data showing that exports of merchandise and services had reached $103.6 billion last year, 4.8 percent higher than the $98.83-billion receipts in 2022.
The country’s total export receipts totaled $87.97 billion in 2021, $80.03 billion in 2020, and $94.74 billion in 2019.
The growth was driven largely by the information technology and business process management (IT-BPM) and tourism sectors, according to the government agency.
READ: PH hopes to grow export revenues by at least 10% in 2024
The DTI also pointed out that merchandise goods faced challenges during the year, with electronics contracting by 3.4 percent or $955 million.
Other commodities that contributed to the decline in merchandise exports include coconut products, other agro-based items, other mineral products and petroleum products.
In contrast, the DTI said fruits and vegetable exports experienced an increase in demand.
BPO, tourism post robust growth
For services exports, the DTI said the country had emerged as a “powerhouse,” recording a 17.4-percent growth, which pulled up the year’s total export performance.
In particular, the DTI said travel services contributed nearly 70 percent of the incremental service export receipts in 2023, followed by other business services.
Growth was also seen in several sectors including telecommunications, computer and information services and transport services.
READ: PH exports lose steam as demand from key trading partners falls
Despite reaching record high in 2023, export revenues were below the target set by the government and export industry groups under the updated Philippine Export Development Plan (PEDP).
Under the PEDP, the government and the private sector had set an export target of $126.8 billion for 2023, indicating that actual performance was around $23 billion short of the mark.
READ: IT-BPM sector revenues may hit $40B in 2024, says IBPAP
Looking ahead, the DTI said it is leveraging technology and digital services to enhance export capabilities, an initiative that includes the launch of a free e-curriculum for local exporters and the implementation of an origin management system to promote the use of free trade agreements.
“The path to global excellence and export growth requires shared ambition, where the government and the private sector must intensify and sustain collaborations,” Trade Secretary Alfredo Pascual said in a statement.
“We recognize the ongoing challenges in both the domestic and global trading environments and hope to address the binding constraints to Philippine export competitiveness as we continue to implement the PEDP for 2023 to 2028,” he added.
