Export growth seen slowing to modest levels
THE Philippine Exporters Confederation, Inc. (Philexport) projects 2023 export revenue to exceed 2022 levels but not “dramatically,” signaling a slowdown from the 5.7% growth in 2022.
Philexport President Sergio R. Ortiz-Luis, speaking at the Philippine Chamber of Commerce and Industry Media Kapihan on Thursday, said the year-earlier comparable base for this year’s exports will be low, effectively boosting the 2023 performance.
“I might be extrapolating, but it will be coming from a low base, so it will show a little increase in percentage, but it will not be dramatic,” he said.
According to preliminary data from the Philippine Statistics Authority, merchandise exports rose 0.8% to $6.7 billion in June from $6.64 billion a year earlier.
First half export earnings amounted to $34.94 billion, a decline of 9.3% year on year.
Export earnings amounted to $78.98 billion in 2022, up 5.7%.
“Our exports, although they are growing, are growing very slowly… our supply chain is affected mainly because our biggest trade partners, like China, slowed down,” he said.
Mr. Ortiz-Luis said that he remains optimistic but sees room for the Philippines’ export markets to develop, particularly for mining products.
“For instance, we should have processing of our ore here rather than just exporting ore. We should be able to export processed nickel ore,” he added.
He sees potential in supplying processed nickel to Japan and China.
Yesterday, the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) projected flat growth in electronics exports in 2023 after they declined sharply in the first half.
“The problem is that the supply chain has been very much affected by geopolitics,” Mr. Ortiz-Luis said. “The biggest electronics importers which are Japan, China, US and even the emerging European companies… are all facing problems, which is beyond our control.”
According to SEIPI, electronics exports dropped 7% to $21.19 billion in the six months to June.
In June, electronics exports rose 11.8% to $4.25 billion. — Justine Irish D. Tabile
