Philexport sees recovery in Q2

The top official of the Philippine Exporters’ Confederation Inc. (Philexport) is confident the downturn in exports will not linger and sees a recovery this second quarter, given the global economy’s momentum.

Citing the outlook of the International Monetary Fund, Philexport President Sergio Ortiz-Luis Jr. said the export sector is expected to gain momentum from global growth that is expected to reach 3.9 percent until 2019, higher than last year’s 3.7 percent. (Related story, A15.)

“The weaker February performance could very well then be just the market reacting to tentative signals and certain policy pronouncements here and in major markets abroad,” he said during the group’s second quarter general membership meeting on Tuesday.

Ortiz-Luis noted the country has yet to see if there are actual adverse effects of the trade tensions between the United States and China, which can disrupt global trade.

He said the electronics sector, however, has expressed concern about its possible impact.

Data from the Semiconductors and Electronics Industry of the Philippines Inc. indicated that China and the United States each accounted for more than 12 percent market share of the $32.7 billion all-time high export performance last year.

“This development may cast doubts on the possibility of a five-percent export growth this year, although we feel that there can be a correction in the second quarter,” said Ortiz-Luis.

The Philippine Statistics Authority (PSA) reported the country’s merchandise export earnings contracted for the first time since November 2016 to $4.66 billion in February, down 1.8 percent from $4.74 billion in the same month last year, due to lower receipts from total agro-based products, manufactures, and petroleum products. /