MANILA, Philippines — The country will need to diversify its exports of products and services, as well as its markets for the sector to be competitive in the long term, according to the Department of Trade and Industry (DTI).
“Philippine exports are highly concentrated not just on a few sectors but also on a few firms, particularly in electronics. COVID-19 has further highlighted the importance of actively seeking new markets and diversifying export products in building a resilient and agile export industry,” Trade Secretary Ramon Lopez said in a statement.
He said more than 3,700 exporters accessed new markets last year to lessen the impact of the pandemic on the economy.
In addition, the country recorded new exports in 32 product lines previously not being shipped out in the last five years.
“We need to actively pursue export diversification strategies, both in terms of markets, products and services to ensure long-term export competitiveness of the country and improve resiliency to future shocks,” Lopez said.
The country’s total merchandise exports rose 16 percent to $62.1 billion in the first eight months. This is also 5.71 percent higher than the pre-pandemic average values from 2016 to 2019
Electronics, which account for the bulk of the country’s exports, grew 15.3 percent year-on-year to $38 billion as of end-October.
Other exports that posted strong growth in the 10-month period are manufactured goods and other mineral products which were up 24.6 percent and 25.8 percent, respectively.
For the month of October alone, the country’s total merchandise exports went up two percent to $6.41 billion from $6.29 billion in the previous year.
“This positive development despite global trade challenges is also attributed to the decision of the Inter-Agency Task Force on the Management of Emerging Infectious Diseases not to disrupt exporters’ operations by allowing 100 percent capacity even during the Enhanced Community Quarantine and stricter alert levels. This, thus, boosted the performance of the sector and allowed them to fulfill their commitments to the global market,” Lopez said.