Export slump shuts down 65 companies

CEBU, Philippines — As exports further weaken, the Confederation of Philippine Exporters Foundation, Inc. (PhilExport Cebu) reported to have lost 65 member companies, registering a 17% drop in its roster of members.

In 2018, 65 companies stopped paying their membership dues for the reasons such as bankruptcy, suspension of business due to lack of orders, change of corporate identity and relocation to cheaper provinces.

A big portion in the increase in number of containers is due to the carriage of “empties” or empty containers. For the first four months of 2019 against the same period last year, the trend seems to continue a downward spiral.

Meanwhile, the Asian Development Bank (ADB) said the outlook for Philippine exports remains weak amid lackluster economic prospects in major trade partners, but imports can pick up speed driven by continued strength in domestic consumption and a recovery in investment.

In an update of its flagship annual economic publication, Asian Development Outlook (ADO) 2019, ADB particularly cited trading partners of the country, including Japan, which accounts for 15 percent of exports; and the European Union, which accounts for 12 percent.

“As exports remain sluggish, imports of raw materials and of parts and components used mainly to manufacture exports should remain subdued too,” the Manila-based multilateral bank said.

However, the bank noted that imports of both consumer and capital goods could be accelerated by continued strength in domestic consumption and a recovery in investment.

Strength in net service exports and remittances from overseas workers should continue to cushion the trade deficit somewhat. (FREEMAN)