Philexport-Cebu: Sector to sustain upbeat growth

CEBU, Philippines — The Philippine Exporters Confederation Inc. (Philexport) Cebu expressed optimism that the sector's positive growth in the first half could be sustained throughout the year.

In an interview on Thursday, Philexport-Cebu executive director Fred Escalona said the weak peso and the recovering global market have significantly helped exporters to recover this year.

"For Central Visayas, the export sector posted positive growth except for January when it was negative," Escalona said, although he did not have official figures.

"Our outlook is positive for the rest of the year," the export official said.

He expressed hopes the sector's recovery would be sustained and that it would not fall down again anytime soon.

Escalona, however, raised the concern of the rising tension at the Korean peninsula which, he said, might affect the multi-trillion trade activity in the Asia-Pacific.

"One problem is the lingering tension at the Korean peninsula," he said. "Kung ma-disrupt ang trade, delikado na."

North Korea has been sending missile threats, which has raised concerns from the international community.

Meanwhile, the Philippine Statistics Authority earlier reported exports in July grew 10.4 percent to $5.285 billion in July, faster than June’s 5.8 percent and a turnaround from July 2016’s revised 10.9 percent fall to $4.787 billion.

From January to July this year, merchandise exports grew 13.8 percent to $36.569 billion while imports increased by a slower 7.9  percent to $51.232 billion.

The country’s trade deficit shrank to $1.646 billion in July, narrower than the gaps of $1.992 billion and $2.373 billion in June and July 2016, respectively. July’s deficit was the smallest since February 2016’s $1.290-billion trade gap.

That resulted in a $14.663-billion balance of trade deficit as of July, down 4.6 percent from the $15.370-billion gap recorded in the same period last year.

Earlier, Economic Planning Chief Ernesto Pernia said the country’s trade performance is consistent with the Asian trade growth.

“We are optimistic that higher growth will be achieved for the remaining months of the year,” Mr. Pernia said.

Export of Philippine manufactured goods, which made up 84.6  percent of the total sales in July, picked up by 8.7 percent to $4.472 billion. Electronic products, which made up around 52.2 percent of the export total, rose 11.8 percent to $2.762 billion with semiconductors contributing $2.003 billion, up 13.4 percent from $1.767 billion a year ago.

Japan remained the top destination of Philippine goods with a 17.3 percent share, although exports to Japan went down 1.1 percent to $915.65 million in July. The US came second with exports climbing 1.66 percent to $811.95 million, accounting for 15.36  percent of total outbound shipments that month. Exports to Hong Kong, meanwhile, surged 26.23 percent to $717.07 million from $568.08 million, claiming the third spot.

The government maintains its 5 percent growth projection for the export sector this year and 10 percent target for imports. (FREEMAN)