The International Monetary Fund (IMF) lowered yesterday its 2012 growth forecast for the US, a major trading partner of the Philippines, but the Bangko Sentral ng Pilipinas (BSP) believes that this will have limited impact on the domestic economy.
BSP Gov. Amando Tetangco Jr. told reporters Wednesday that Philippines’ trade will be negatively affected by a slower growth of the world’s largest economy as this will reduce export demand.
“But what is also helping us is that we have pursued export diversification in terms of both market and products. So this export diversification program will moderate any impact on our export market,” he stressed.
As of last April, US accounted for 14.6 percent of the Philippines’ exports, the second after Japan’s 15.9 percent share.
Those in China, Hong Kong, Singapore, Taiwan, Thailand, Germany and Indonesia. These 10 countries represented about 84.6 percent of the country’s total exports as of the fourth month this year.
IMF has revised downward to two percent its growth projection for the US this year and 2.25 percent in 2013.
These figures were previously at 2.1 percent and 2.4 percent for 2012 and 2013, respectively.
Relatively, the Semiconductor and Electronics Industries of the Philippines Inc. (Seipi) also lowered its export growth forecast for this year to five to seven percent from 10 to15 percent on account of a stronger peso and the negative developments in the US and Europe.
A stronger peso hurts exporters because it makes their products expensive overseas.
Tetangco, however, pointed out that amid the expected slowdown of Philippines’ exports domestic demand “continues to be healthy given the acceleration of government spending in infrastructure, the robust consumption and the increase in agricultural production.”
“That should help us maintain or achieve a sustainable growth,” he added. PNA
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