MANILA, Philippines — The Philippine Exporters Confederation Inc. (Philexport) is optimistic about achieving a growth of five to six percent in exports next year, propelled by the recovery of the US economy and the expansion of the electronics sector.
In a statement, Philexport chairman George Barcelon said they are hopeful that 2024 will be better compared to this year as the inflation issue has been mitigated and fuel and commodity prices have gone down.
“We are talking to some of the exporters, they are hopeful. Probably, if we can get a midpoint of five to six percent increase, I think it would be good,” he said.
Barcelon expects the country’s exports to rise next year after total value declined by 7.8 percent to $60.9 billion in the first 10 months this year amid the global economic slowdown.
Latest data from the Philippine Statistics Authority (PSA) showed that electronics exports remain the country’s top export, constituting nearly half of total sales of $60.9 billion from January to October, amounting to $34.5 billion.
“I think the electronics sector is the one that will push up the numbers,” Barcelon said.
He also expressed optimism for the recovery of the US economy.
“The US economy, if you noticed, is bouncing back especially in the electronic sectors because AI (artificial intelligence) is now popular and these are all really electronics so it is being hyped and the stock market seems to reflect it,” he said.
Barcelon said that aside from electronics, some export sectors have been doing well, citing the furniture sector as one.
“With GSP Plus, there are about 6,000 items that give the Philippines an advantage without tax. This has been highly used by our exporters so those factors can really boost th export,” he added.
The Foreign Buyers Association of the Philippines (FOBAP) earlier said the country’s exports of garments, textiles and apparel are expected to grow by two percent next year, reaching around $1.33 billion, as industry players expand into new markets to boost revenues.
FOBAP president Robert Young said that 2024 would “not be an easy year” for the sector amid Russia’s invasion of Ukraine and the Israel-Hamas war causing disturbances in the supply chain.
Young said they are now looking for other markets that can be tapped aside from the current export markets which include the US, Canada, European Union and Association of Southeast Asian Nations.
“So, we are now looking into other countries in South America and the Middle East. We are in discussions with them to increase our production quantity,” said Young, who is also a trustee for the textile, yarn, and fabric sector of the Philippine Exporters Confederation Inc.
“We are already in the process of receiving orders from new and existing market. However, (these are) not as big as last year,” he said.
Young sees high demand for basic wearables and fast fashion or high-end garments next year.
He said the achievement of two-percent export growth by the middle of next year also hinges on government initiatives on establishing more free trade agreements (FTAs) with other countries, and a remedy to reduce power cost in the country or provision of energy subsidy especially in the export sector.