PH likely to miss exports growth target this year – Philexport

The Philippines will likely miss its growth target this year on continuing difficulties due to the geopolitical situation, the war waged by Russia on Ukraine, and the Israel-Hamas war, according to the highest official of the Philippine Exporters Confederation (PhilExport). 

PhilExport President Sergio Ortiz-Luis Jr. told reporters that growth in exports would be slower this year and prospects for 2024 looks uncertain because of challenges that “we did not anticipate like fuel prices.”  

In August this year, the country’s exports increased by 4.2 percent to $6.7 billion from $6.43 billion in August 2022. But on a year-to-date basis, the country’s exports decreased by 6.6 percent or a total of $47.81 billion from $51.18 billion in the same January-August period last year. 

Under the Philippine Exports Development Plan (PEDP), the government revised its export revenue target to $126.8 billion by the end of 2023. 

The PEDP also targets $143.3 billion in 2024; $163.6 billion in 2025; $186.7 billion in 2026; $212.1 billion in 2027; and  $240.5 billion in 2028. This translates to an average annual growth of 11 percent of the Philippine exports of goods and services.   

Ortiz-Luis, however, noted that the 2023 figure was also lower because the base figure in 2022 was higher as exports improved after the pandemic. 

“But we are growing, only that it is not as fast as we thought, but we are doing better than other countries, we are not negative. Countries in Europe, like Italy and Germany and other countries involved in the Ukraine-Russia war, they are already suffering,” he said.  

“Hopefully, the Israel problem will not escalate because the Ukraine-Russia is still there,” he added. 

He noted of the high oil prices as a result of the ongoing war in other parts of the world  have triggered soaring inflation levels as shown by the high prices of goods and commodities.   

In addition, Ortiz-Luis said the government should further ease doing of business and policies to encourage investments into the country. 

“There are lots of things we should correct, like antiquated regulations and policies, because these make so hard to push projects,” he said. He reiterated the cancellation of contracts on the reclamation projects in the Manila Bay area.

He warned that the cancellation of contracts, which have undergone all government processes and the projects almost done, will create a negative impact among investors on the country’s investment policies.