Exports seen rising 10% this year

Philippine exports of goods and services are expected to climb 10 percent this year on the emergence of China and renewed demand from the country’s major markets, the top official of an umbrella group of local exporters said.

“We may see a high of 10 percent growth as long as we maintain our major markets and they will not have major problems just like last year wherein there were a lot of unexpected events that occurred,” Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr. told The STAR.

“Plus, the other thing that is giving us confidence is China. Delegations just keep coming in, nonstop,” he said.

Philexport is projecting a faster growth in the country’s exports to China due to improving relationship between Manila and Beijing.

Just last week, China signed a purchase agreement with the Philippines for local products ranging from agricultural to chemicals and minerals worth $1.7 billion.

In a separate report, Barcelona-based Focus-Economics expects merchandise exports to grow by just 3.7 percent this year due to soft global demand.

In 2016, the public-private Export Development Council (EDC) was forced to slash the country’s total exports growth target to zero-three percent from its original forecast of 6.6-8.8 percent due to weak merchandise exports brought about by sluggish global trade.

After successive months of decline, merchandise exports saw an increase only in September last year with 5.1 percent, which was sustained in October with 7.6 percent and December with 4.5 percent.

Outward shipments of goods, however, saw a double - digit growth of 22.5 percent in January to $5.13 billion from $4.19 billion in the same period last year.

“The month of January is normally low but it was able to grow 22.5 percent. Where did that come from? Well, our major markets that weakened seemed to have returned such as Europe, US, China, Netherlands, Great Britain and Hong Kong. What seemed to have declined is Japan but it’s not that big,” Ortiz Luis said.

“So there is really room for growth. Hopefully we can sustain it throughout the first quarter. If the first quarter puts on a good showing which I suspect there is, then we will be okay,” he said.

Ortiz Luis said the government and the private sector would conduct planning sessions in the coming weeks as they prepare to revise the country’s exports growth target upward.

Last week, Department of Trade and Industry Export Marketing Bureau director Senen Perlada said EDC is likely to raise this year’s total export growth target – with a high of seven percent in mind – from the present forecast for 2017 of just three to five percent.

Perlada said the new targets are expected to come out by end-March this year.