Exports seen to reach record $108 billion this year

MANILA, Philippines — The country’s exports of goods may hit a record-high of $108 billion this year, driven by the continued demand for electronic products, the Philippine Exporters Confederation Inc. (Philexport) said.

“Our computation is around $108 billion,” Philexport president Sergio Ortiz-Luis Jr. told reporters when asked for an outlook on exports.

Last year, the country’s merchandise exports hit $84.48 billion, the highest since 1991.

Ortiz-Luis said that exports are one of the bright spots for the economy as the sector continues to grow.

Latest data from the Philippine Statistics Authority showed that merchandise exports from January to September rose by 17 percent to $73.95 billion from $63.08 billion in the same period last year.

This marked the highest year-to-date value of exports since the government started to track the country export performance in 1991.

For September alone, export sales jumped by 36 percent year-on-year to $9.87 billion. This was also the highest monthly exports value since 1991.

“We think it may not be a big jump, but there will be continuous increase as long as there is no change in existing rules,” Ortiz-Luis said, citing the exemption of electronics and agricultural products from tariffs being imposed by the United States.

Both electronics and agricultural products are key Philippine exports to the US.

Electronic products also account for the biggest share in the Philippines’ total exports.

Ortiz-Luis said that the country’s export performance would be driven largely by demand for electronic products.

At the same time, he said the country’s exports would be affected by geopolitical developments.

While Philippine exports continue to grow, he said the country is still lagging behind its neighbors.

“We have a big increase in percentage, but they have a big volume. So in total amounts, we’re still small,” he said.

Even as more investments are being made in the Philippine Economic Zone Authority’s ecozones, Ortiz-Luis said many firms with big-ticket investments are taking a wait-and-see stance amid ongoing uncertainty.

On the other hand, he said that our neighbors continue to capture big investments for exports.

He also said it is difficult for the Philippines’ to diversify as many of the country’s products are not competitive.

Apart from lacking quality infrastructure, production costs are higher in the Philippines compared to its neighbors.

As such, Ortiz-Luis said it is cheaper to import many of the products.

Despite the challenges, he said the country needs to diversify its exports and markets for continued growth.

Trade Secretary Cristina Roque said the government would continue to assist Philippine businesses in tapping opportunities overseas for exports to continue to increase.

She said the Department of Trade and Industry would help businesses meet international standards and match them with foreign buyers.