The government and the private sector agreed to review and recalibrate the targets under the Philippine Export Development Plan (PEDP) 2023-2028, following the lackluster performance of merchandise exports, particularly electronics and coconut oil.
Philippine Export Confederation Inc. (Philexport) president Sergio Ortiz-Luis expressed concern the country would miss the target set under the newly-crafted five-year PEDP.
“For sure, we will not meet the target this year. We think that targets under the PDEP may be pushed back for two years,” Ortiz-Luis said in an interview at the opening of the 4-day National Exporters’ Week and Exporters Congress at the Sheraton Manila Monday.
PEDP 2023-2028 expects exports to reach $126.8 billion in 2023, $143.4 billion in 2024 and $163.6 billion in 2025. From 2026 to 2028, exports are expected to grow to $186.7 billion, $212.1 billion in 2027 and $240.5 billion, respectively.
The plan is counting on agriculture and agri-based exports; wearables, fashion accessories and travel goods; electronics; IT-BPM; minerals; transport products; chemicals; and home furnishings to drive the country’s exports. Together, they are expected to account for $213 billion or 88.5 percent of total exports by 2028.
The Board of Investments (BOI) predicted that goods and services exports would grow 5 percent to $102.9 billion in 2023 from $98 billion in 2022, faster than the previous year’s but slower by 23.4 percent compared to the targets set by the Export Development Council (EDC).
Export Marketing Bureau (EMB) director Bianca Sykimte said the EDC planned to convene after the National Exporters’ Week to align its targets with the market trends.
“We have to take into account the growth in economic markets and the forecasted imports, as well as our own supply capability, but the strategies will remain the same,” she said.
Data showed that services exports went up by 22 percent in the first half from $800 million in 2022 to over $4 billion this year, led by travel recovery.
Compared to services, merchandise exports went down by 6.6 percent to $47.8 billion in the first eight months of 2023.
The BOI said that compared to other Asian neighbors it was tracking, the Philippines was ahead with a year-on-year increase of 4.2 percent on goods export in August 2023.