Philippines less vulnerable to global trade shocks – Balisacan
MANILA – The Philippines’ relatively low exposure to trade compared to its Asian neighbours offers a buffer against global economic shocks, National Economic and Development Planning Secretary Arsenio Balisacan said on Monday.
“The economy is not as vulnerable to shocks in the global marketplace as our neighbours… because the Philippine economy’s exposure to trade is fairly small,” Mr. Balisacan told a press conference.
However, he cautioned against complacency, stressing the importance of strengthening export performance by diversifying markets and addressing investment constraints so the country could take advantage of trade diversion opportunities resulting from the sweeping U.S. tariffs.
“We need to double, even triple, our efforts to improve the investment environment so investors see the Philippines as a viable destination,” Mr. Balisacan said.
The Philippines has not been spared from the global trade wars triggered by US President Donald Trump’s tariffs, with Washington threatening levies on Filipino exports.
The Philippines, which already has free-trade agreements with countries such as South Korea and Japan, is actively pursuing a similar pact with the United States to safeguard and expand market access.
Mr. Balisacan said it was premature to revise the country’s economic targets despite the heightened uncertainty. He noted that resilient domestic consumption, which makes up around three-quarters of GDP, should continue to support growth.
He believes hitting the lower end of this year’s 6.0% to 8.0% growth target remains realistic. — Reuters
