AN export sector leader has lowered his growth forecast for this year after July figures revealed exports only grew by 0.3 percent.
Sergio R. Ortiz-Luis Jr. of the Philippine Exporters Confederation Inc. (Philexport) admitted in a recent interview with reporters he is no longer optimistic that exporters can hit their target of growing 5 percent this year. “[That is a] tall order, but I really do not know,” he said.
“Frankly, I will be happy if we achieve a flat just to avoid a negative. As of now, we are negative,” Ortiz-Luis added.
Figures from the Philippine Statistics Authority reported exports improved by 0.3 percent to $5.85 billion in July, from $5.83 billion during the same month last year. Electronic products yet again made up more than half of the pie, after growing by 5.2 percent to $3.27 billion, from $3.11 billion.
However, year-to-date export figures are still on a slump. Exports from January to July amounted to $38.74 billion, down by 2.8 percent from $39.86 billion during the same stretch last year.
This is the reason Ortiz-Luis has tempered the sector’s growth forecast, as he believes it is now improbable to grow 5 percent for the year with less than four months left.
He earlier blamed the trade conflict between the world’s largest economies for the weathered export performance this year.
He also cited the sweeping ban on contractualization as one factor exporters are hesitant to expand operations.
“Rather than be saddled with permanent employees that they might not need, what happened is that they waited for a resolution, a policy. That is why you will notice employment significantly went down,” Ortiz-Luis said in May.
Exports last year totaled to $68.71 billion. The country’s top exports markets were Japan ($10.85 billion), the United States ($9.66 billion) and Hong Kong ($9.02 billion).