Weaker peso to boost Phl exports in 2014

MANILA, Philippines (Xinhua) - The depreciation of the peso would encourage exporters to increase their shipments and boost Philippine export of goods and services this year, the Department of Trade and Industry (DTI) said today.

The DTI's Bureau of Export Trade Promotion (BETP) said it expects Philippine export of goods and services to grow by 8 percent on year to $82 billion.

"The stronger dollar will push exporters to improve their performance this year," BETP director Senen Perlada told reporters.

The DTI said the strong performance of the exports sector will help the country's economy to post a growth of 7 percent this year, higher than the 6.3-percent increase projected by the International Monetary Fund.

Perlada said the services sector as well as merchandise exports such as electronics and processed food would boost export growth in 2014.

BETP earlier estimated that the country's export of goods and services in 2013 went up by as much as 7.2 percent on year to $75.8 billion.

The Philippine government said the local central bank continues to monitor the appreciation of the US dollar against the peso to prevent inflation and maintain the strong purchasing power of consumers.

Presidential Communications Operations Secretary Herminio Coloma, Jr. said the government expects the peso to start gaining traction again by the end of the year.

The Philippine peso depreciated against the US dollar in recent days mainly due to the decision of the US Federal Reserve to cut back on its bond-buying program.