Philexport confident of 2-digit rise in shipments this year

MANILA, Philippines — The country’s export group is expecting a robust turnout for merchandise exports this year with a double-digit growth forecast, supported by the continued recovery of major markets, the depreciation of the peso against the dollar, and efforts to double funding for overseas product promotions.

Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr. said the group is optimistic the country would achieve a double-digit expansion in the outbound shipment of goods this year as recent business surveys and industrial production data have pointed to a firming up of the recovery in the US and Europe.

The US followed Japan as among the country’s top exports markets in July 2017.

By economic bloc, the European Union member countries ranked third, next to East Asia and ASEAN member countries.

Aside from the recovery in the country’s major markets, Ortiz-Luis said the peso is also trending to the favor of dollar-generating sectors like exports.

He said a higher budget for overseas product promotions would further boost the country’s export competitiveness, noting that neighboring competitors are enjoying hefty subsidies that are giving them the competitive edge.

According to Philexport, Trade Secretary Ramon Lopez has sought the doubling of the government budget for international product promotions to be able to compete with other countries in marketing products and services of micro, small and medium enterprises.

“This gives us a positive signal that demand is recovering. If this trend is sustained, we can be more confident of a double-digit growth,” Ortiz-Luis said.

“But still, we have a lot of catching up to do given the impressive performance from some Asian economies,” he said.

July’s 13.8-percent export growth brought year-to-date merchandise receipts to $36.569 billion.

The Department of Trade and Industry earlier maintained a full year target of a three to five percent expansion despite merchandise exports posting a robust growth in the first semester.

In 2016, total merchandise exports registered a 4.4 percent decrease to $56.23 billion from $58.83 billion in 2015 due to weak global demand.