THE Department of Trade and Industry (DTI) said it will reduce its export target to about 4-5% in 2019 to factor in the global slowdown and stiffer competition in the services sector.
“Overall outlook is still in for positive growth, maybe not at 8%, maybe temper it a bit to 4-5%. I am asking (DTI staff) to recompute,” Trade Secretary Ramon M. Lopez told reporters on Wednesday in Pasay City.
DTI’s Export Marketing Bureau Director Senen M. Perlada said he will recommend in the next Export Development Council meeting the revision of forecasts for both merchandise and services to “low single-digit growth.”
“In merchandise exports the initial target is in the single digits. In services, double digits,” Mr. Perlada told reporters.
Data from the Bangko Sentral ng Pilipinas showed that exports from goods and services in the first three quarters of 2019 amounted to $67.21 billion, up 2.1%.
Goods accounted for almost 60% with the $38.81 billion, total falling 1.8%.
“What we’re seeing now is tight competition for services. In that space, competition is growing, permitting buyers to engage in cost arbitrage among suppliers,” Mr. Perlada added.
“Our exports did not really got affected by the US-China trade war. Global demand is really weak. The manufacturing index fell slightly because of weak external sentiment,” he said.
He added that the Philippines benefitted from the trade dispute as foreign firms move their factories out of China.
However, Mr. Perlada remains positive that exports will hit $122 billion by 2022, the low end of projections under the five-year Philippine Exports Development Plan. — Janina C. Lim
