THE slow recovery of the Chinese economy is affecting the demand for Philippine exports, according to US-based think tank Moody’s Analytics.
In its latest economic brief, Moody’s Analytics said the country’s exports to China declined 16.9 percent in 2023 compared to the 16.1 percent growth in US exports to the country.
Moody’s Analytics said this pushed down China’s ranking to only the 4th largest export market for the Philippines last year.
“That was a big enough drop to rank China as the fourth largest destination for exports behind Japan and Hong Kong. The sputtering economic recovery in China continues to disappoint Filipinos,” Moody’s Analytics said.
In January 2024, data from the Philippine Statistics Authority (PSA) showed export earnings grew 9.1 percent. Moody’s Analytics said this performance ended a four-month decline in exports.
The growth, Moody’s Analytics said, was driven mainly by electronic products which accounted for 58 percent of total export earnings.
The think tank said the growth in electronic product exports were semiconductors, electronic data processing, and automotive electronics.
“The strong export reading was encouraging given soft industrial production figures for January. It appears that exporters used inventories to fill orders,” Moody’s Analytics said.
Earlier, Trade and Industry Officer in Charge Ceferino S. Rodolfo told reporters that the department welcomed the rebound in the country’s export performance in January 2024.
Rodolfo also said the government is looking at expanding exports in other sectors such as processed food. He also said the government continues to join expositions in other countries such as those in the Middle East.
He added that representatives from the DTI and members of the local industry are now in the United States to explore opportunities in health information management systems. (See: https://businessmirror.com.ph/2024/03/13/phl-export-earnings-grow-9-1-in-january/).